Subway, the popular fast-food chain known for its foot-long subs, will be making changes to its beverage offerings in the U.S. starting in January 2025. The restaurant announced a new partnership with PepsiCo that will see PepsiCo beverages, including Pepsi, Pepsi Zero Sugar, Tropicana, Gatorade, Aquafina, and other drinks, replacing the current Coca-Cola products that Subway offers.
This switch is part of a 10-year deal that Subway has signed with PepsiCo, aiming to bring the brand's snack and beverage portfolio under one supplier and drive more efficiency across the system. Frito-Lay snack products, a subsidiary of PepsiCo, will also continue to be available at Subway restaurants in the U.S. through 2030.
Subway's decision to switch to PepsiCo beverages comes after nearly two decades of partnership with The Coca-Cola Company. Coca-Cola has been serving Subway restaurants in the U.S. for almost twenty years and will continue to do so until the end of this year.
In addition to the beverage changes, Subway has been implementing other initiatives related to its meal offerings. Last July, the chain added automatic deli slicers to U.S. locations to provide freshly sliced meats for its sandwiches. This move was accompanied by the introduction of four new sandwich options as part of Subway's "Subway Series" menu.
Despite these changes, Subway reported positive same-store sales worldwide for 12 consecutive quarters as of February. The chain's decision to partner with PepsiCo and introduce new equipment and menu options reflects its ongoing efforts to enhance the customer experience and drive growth in the competitive fast-food industry.