Subway, the nation's largest fast food chain, said that beginning in 2025 it is switching its soft drink provider from Coca-Cola to Pepsi as part of a 10-year deal.
The deal is a significant one for Pepsi, as Coca-Cola is the beverage provider for other leading fast-food chains, including McDonald's, Burger King and Wendy's.
Subway said beverage choices in 2025 will include Pepsi, Pepsi Zero Sugar, Mountain Dew, Starry, Tropicana, Lipton, Aquafina and Gatorade. Subway said its franchises will be provided with new beverage dispensers as part of the transition.
The transition will begin Jan. 1, and is expected to last several months.
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Subway says the change will provide value for customers and franchisees.
According to the latest consumer price index, carbonated beverage prices in the U.S. increased 4.2% over the last year.
"The partnership with PepsiCo is an exciting milestone in our journey to become America's favorite place to eat, drink and work," said Doug Fry, president of Subway, North America. "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."
According to QSR Magazine, Subway is the nation's largest fast-food chain with over 21,000 locations.
PepsiCo is also the parent company of Lays. Subway said the brand of chips will continue being sold at Subway as part of the agreement.
Although Coca-Cola products are currently sold at U.S. Subway locations, some international Subway locations, including in Canada and Germany, sell Pepsi products.
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