Subway is making the switch back to Pepsi (NASDAQ:PEP) at its U.S. restaurants, replacing Coca-Cola (KO) as the fountain drink supplier to its 20K restaurants.
Beginning in 2025, Subway customers will be able to wash down their Ultimate B.M.T. with PepsiCo (PEP) products like Gatorade, Mountain Dew, and Lipton tea for the next 10 years. The restaurant chain is also extending its agreement with PepsiCo (PEP) to offer snacks like Fritos and Doritos through 2030.
The change marks a huge shift for Subway which has offered Coke (KO) beverages since 2005 after ending a 15-year run with Pepsi (PEP). As the deal with Coke (KO) ended, Subway began stocking Pepsi (PEP) products at some restaurants in Canada, Germany, and the Netherlands.
“It’s a win-win for everyone,” said Doug Fry, Subway’s president for North America, adding that “it brings a delicious suite of beverages and snack choices to our guests, driving additional consideration of these menu items while also providing cost-effective, streamlined solutions to our franchisees.”
Coca-Cola (KO) remains the exclusive beverage provider for McDonald’s (MCD), Wendy’s (WEN), and Burger King (QSR), while Pepsi products are offered exclusively at Yum! Brands (YUM) chains Taco Bell, KFC, and Pizza Hut.
Financial terms of the partnership were not disclosed.