• by Tanya Gazdik , March 24, 2024

Subway and Coca-Cola are breaking up after 15 years. 

In 2025, the sandwich chain starts a 10-deal to serve Pepsi beverages exclusively.  As for other PepsiCo products, Subway already sells Frito-Lay snacks and will continue through 2030, and franchises can now sell a larger selection of Gatorade beverages, according toUSA Today.

“The decision to switch brands is based on ‘guest preferences across demographics,’” according to CBS News. “The change is expected to ‘provide additional value to franchisees, including all new beverage equipment provided to restaurants.’”

Subway said next year’s Pepsi pivot across its 20,000 U.S. restaurants will happen "over the course of several months,” according to FOX Business Network. “The chain already carries Pepsi products in some countries.”

The restaurant chain has pursued other initiatives related to its meal offerings in the past year.

“In July, for example, it finished adding automatic deli slicers to U.S. locations so that restaurants could start using freshly sliced meats for its sandwiches,” FOX Business Network notes.

The agreement also entails PepsiCo providing restaurants with all new beverage equipment, one of the features that will provide additional value to franchisees.

“Another is that Subway’s snack and beverage portfolio will be under a single supplier creating more efficiency across the system,"  according to as.com.

Locations overseas began the shift to Pepsi. 

“After the agreement with Coca-Cola expired several regions around the world switched over to Pepsi products including Canada, Germany, the Netherlands and the Nordic countries,” according to as.com. 

Subway has around 37,000 stores in 100 countries.

“Pepsi and Coca-Cola are two of the world's largest beverage companies and longtime rivals. Pepsi has made light of the fact that it has been seen as a lesser cola in the past,” according to Business Insider. “In 2019, it ran a Super Bowl ad, dubbed: ‘Is Pepsi OK?’ — which poked fun at a question consumers are often asked in restaurants, it said.”<