Subway and PepsiCo forge decade-long beverage supply partnership in US

Subway, recognized as one of the globe’s leading restaurant chains, has made headlines with its recent announcement of a 10-year exclusive agreement with PepsiCo. This deal, set to commence on January 1, 2025, will see PepsiCo become the sole supplier of beverages in Subway‘s U.S. outlets. Alongside, Subway’s existing partnership with Frito-Lay, a subsidiary of PepsiCo, will be extended through 2030, signifying a unified approach to Subway’s U.S. snack and beverage offerings, aiming for heightened system efficiency.

At the core of this new partnership, Subway restaurants across the United States will introduce a carefully selected range of beverages from PepsiCo’s diverse portfolio. This lineup includes popular choices such as Pepsi, Pepsi Zero Sugar, MTN DEW, Starry, Tropicana, Lipton, Aquafina, and Gatorade. Furthermore, Subway franchisees will be granted the flexibility to expand their Gatorade beverage selection, aligning with consumer preferences and enhancing the dining experience.

Doug Fry, President of Subway North America, underscored the significance of this alliance, stating, “The partnership with PepsiCo is an exciting milestone in our journey to become America’s favorite place to eat, drink and work.” He highlighted the mutual benefits of this collaboration, which promises to deliver a rich array of beverage and snack options to Subway guests while offering cost-effective, streamlined solutions to franchisees.

PepsiCo to Become Exclusive Beverage Supplier for Subway Restaurants in U.S. Photo courtesy of PRNewswire/Subway.

This agreement also paves the way for innovative marketing and media partnerships between Subway and PepsiCo, with a focus on enhancing the customer experience and introducing new flavors to Subway enthusiasts in a compelling manner.

Anne Fink, President of PepsiCo Global Foodservice, echoed this enthusiasm, emphasizing the shared commitment of both companies to operational excellence and consumer-focused innovation. “Together, we’re elevating the consumer experience with dynamic beverage and snack offerings,” Fink remarked, showcasing the broad appeal of their combined efforts to Subway fans in the U.S.

The transition to PepsiCo’s beverage lineup in all U.S. Subway restaurants is anticipated to begin in 2025 and will be implemented over several months. This partnership not only strengthens Subway’s beverage and snack offerings but also aligns with its commitment to enhancing food quality and guest satisfaction. With PepsiCo already serving as Subway’s beverage provider in various global markets, this extended U.S. partnership marks a significant step in both companies’ efforts to cater to diverse consumer tastes and preferences.

The strategic partnership between Subway and PepsiCo represents a forward-thinking approach to brand collaboration, potentially setting a new standard for industry partnerships. By leveraging PepsiCo’s extensive beverage portfolio, Subway aims to enhance its customer experience, reflecting a deep understanding of evolving consumer preferences. This agreement is a testament to the power of collaboration between food and beverage giants, promising to deliver significant benefits to consumers, franchisees, and the brands themselves.