Subway locations in the US will provide PepsiCo beverages starting in 2025 as part of a 10-year arrangement. Subway®, one of the world’s largest restaurant brands, announced a 10-year partnership with PepsiCo to supply beverages in US outlets starting January 1, 2025. Subway’s long-standing agreement with Frito-Lay® will be extended until 2030, consolidating the brand’s U.S. snack and beverage portfolio under one supplier and increasing system efficiency.
Under the new partnership, Subway restaurants will provide a consumer-driven selection of beverages from PepsiCo’s diverse beverage portfolio, including Pepsi®, Pepsi® Zero Sugar, MTN DEW®, Starry®, Tropicana®, Lipton®, Aquafina®, and Gatorade. Subway franchisees will also be able to offer a greater assortment of Gatorade beverages.
The new partnership demonstrates Subway’s commitment to providing better cuisine and a better guest experience, which includes ensuring that the brand’s beverage options fit with guest preferences across all demographics. Furthermore, the modification will increase value for franchisees by covering all new beverage equipment delivered to restaurants.
“The partnership with PepsiCo is an exciting milestone in our journey to become America’s favorite place to eat, drink and work,” said Doug Fry, President of Subway, North America. “It is a win-win for everyone, as it brings a delicious suite of beverage and snack choices to our guests, driving additional consideration of these menu items, while also providing cost-effective, streamlined solutions to our franchisees.”
As part of the ongoing brand collaboration, consumers can expect to see Subway and PepsiCo brands collaborate in new marketing and media campaigns.
PepsiCo Global Foodservice President Anne Fink stated, “The agreement with Subway represents two iconic companies coming together to further their commitment to delivering operational excellence and driving breakthrough innovation for consumers across the U.S.”. “Together, we’re elevating the consumer experience with dynamic beverage and snack offerings — including those that appeal to a broad spectrum of consumers — bringing new flavors to Subway fans in a powerful way.”
The move to offering PepsiCo products in all US restaurants will begin in 2025 and will be phased in over several months. PepsiCo currently serves Subway beverages in numerous countries, including Canada, Germany, the Nordics, and the Netherlands.
As one of the world’s largest quick service restaurant brands, Subway serves freshly made-to-order sandwiches, wraps, salads and bowls to millions of visitors, across more than 100 countries and territories in approximately 37,000 stores every day. Subway restaurants are owned and run by Subway franchisees, a network of thousands of devoted entrepreneurs and small business owners committed to providing the finest guest experience in their areas.
