Restaurant brand signs 10-year agreement with PepsiCo and extends Frito-Lay pact through 2030
Subway will be shifting its beverage-supplier contract to PepsiCo from Coke for 10 years, beginning Jan. 1, the company said Tuesday.
The sandwich chain, which has headquarters in Miami and Shelton, Conn., said it had also extended its Frito-Lay partnership through 2030, bringing the snack and beverage contracts together under one supplier.
The company, in a press release, said the consolidation under one supplier would drive more efficiency across the system.
Under the new agreement, Subway restaurants will offer an assortment of beverages from the PepsiCo portfolio such as Pepsi, Pepsi Zero Sugar, MTN DEW, Tropicana, Lipton, and Aquafina, Subway franchisees will also have the option of offering a larger selection of Gatorade beverages.
Doug Fry, president of Subway, North America, said in a statement: “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.”
Anne Fink, president of PepsiCo Global Foodservice, added: “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 transition to offer PepsiCo products in all U.S. restaurants will begin in 2025, and it will be rolled out over several months. PepsiCo is also the current Subway beverage provider in several regions around the world, including Canada, Germany, the Nordic countries, and the Netherlands, among others.
Meanwhile, Cincinnati-based Skyline Chili, which has 138 locations in Florida, Indiana, Kentucky and Ohio, said Monday that it would be switching from PepsiCo products to Coke.
Subway has nearly 37,000 restaurants in more than 100 countries and territories.
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