PepsiCo Inc. has sealed the deal to be the sole beverage supplier for all Subway shops in the US. This agreement ends Coca-Cola's long-standing partnership with one of America's biggest chains.
Starting in January 2025, Subway will switch to offering PepsiCo drinks. Favorites like Mountain Dew, Tropicana, and Gatorade will replace Coca-Cola products. Coca-Cola's staples such as Sprite and Diet Coke will be phased out over several months.
Coca-Cola expressed its commitment to serving Subway until the end of the current year. The company has been the drink provider for Subway's US locations for nearly two decades.
“We are committed to serving Subway through the end of this year,” Coca-Cola said in a statement. The beverage giant has served Subway’s US restaurants for nearly 20 years, the company said.
Subway's switch to PepsiCo marks the end of Coca-Cola's largest US fountain account. This account was notable for its extensive number of locations, as reported by Beverage Digest.
In addition to beverages, Subway is extending its partnership with Frito-Lay, another PepsiCo branch. This agreement ensures Subway shops will have Frito-Lay snacks through 2030. PepsiCo beverages are already available at Subway locations in various global regions.
Subway is also undergoing a significant acquisition. The chain is set to be bought by Roark Capital Group, an Atlanta-based firm, for close to $10 billion. This deal is currently under the Federal Trade Commission's scrutiny.
Following the announcement, PepsiCo's shares saw a 0.7% increase. Meanwhile, Coca-Cola's stock also experienced a slight rise of 0.2%.