Subway customers in the United States can anticipate a shift in their beverage choices come next year, as the popular sandwich chain announces a transition to PepsiCo beverages. In a newly forged partnership set to commence in January 2025 and extend for ten years, Subway will bid farewell to Coca-Cola products and welcome PepsiCo's lineup, including Pepsi, Pepsi Zero Sugar, Tropicana, Gatorade, Aquafina, and more. This move marks a significant change from Subway's longstanding agreement with Coca-Cola, which dates back to 2003.

In response to Subway's decision to switch to PepsiCo beverages in its U.S. locations starting next year, Coca-Cola expressed pride in its nearly twenty-year partnership with the restaurant chain and pledged to continue serving Subway until the end of the current year. Coca-Cola emphasized its commitment to delivering value for Subway, its franchisee partners, and consumers.

Subway confirmed that the transition to Pepsi products across its 20,000 U.S. restaurants would occur gradually over several months. While Pepsi products are already available in some countries, Subway announced that it would continue to offer Frito-Lay snack products at its American restaurants until 2030. Notably, Frito-Lay has been a subsidiary of PepsiCo since a merger in 1965.

These strategic moves aim to consolidate Subway's snack and beverage portfolio under one supplier, driving greater efficiency across the system. Additionally, Subway has been proactive in enhancing its meal offerings, such as introducing automatic deli slicers to U.S. locations to provide freshly sliced meats for sandwiches. Alongside this equipment upgrade, Subway unveiled four new sandwich options, expanding its "Subway Series" menu.

Despite industry challenges, Subway reported positive same-store sales worldwide for twelve consecutive quarters as of February, indicating resilience and ongoing consumer support for the brand.