In a surprising move, Subway, one of the world's largest restaurant chains, has announced a major change to its soda machines in the United States. The company revealed on Tuesday that it has entered into a 10-year agreement with PepsiCo, leaving its long-standing partnership with Coca-Cola behind.

Starting from January 1, 2025, Subway will exclusively offer Pepsi products at its U.S. locations. This includes popular beverages such as Pepsi, Pepsi Zero Sugar, MTN DEW, Starry, Tropicana, Lipton, Aquafina water, and Gatorade. Additionally, franchisees will have the option to expand their selection of Gatorade flavors, providing more choices for Subway customers.

Doug Fry, President of Subway, North America, expressed his excitement about the partnership, stating, "The partnership with PepsiCo is an exciting milestone in our journey to become America's favorite place to eat, drink, and work." Fry added that the agreement would not only bring a delicious range of beverages and snacks to Subway guests but also offer cost-effective solutions for franchisees.

Although the implementation of the agreement will take several months, once it begins in 2025, it will streamline Subway's beverage and snack offerings by consolidating them under a single supplier, PepsiCo. This move aims to enhance operational efficiency across all Subway restaurants in the U.S.

Alongside the partnership with PepsiCo, Subway also announced that its existing agreement with the Frito-Lay brand has been extended through 2030. This extension ensures that Subway customers will continue to enjoy a variety of popular snacks for years to come.

Anne Fink, President of PepsiCo Global Foodservice, emphasized the significance of the collaboration, stating, "The agreement with Subway represents two iconic companies coming together to further their commitment to delivering operational excellence and driving breakthrough innovation for consumers across the U.S." Fink emphasized that the partnership will enhance the consumer experience by providing dynamic beverage and snack options that cater to a broad spectrum of tastes.

It is worth noting that PepsiCo is currently Subway's beverage provider in several regions worldwide, including Canada, Germany, the Nordics, and the Netherlands. This partnership expansion reinforces the existing relationship between the two companies.

This significant shift in beverage partnerships follows a similar move made by fast food brand Culver's last year, which switched from Pepsi to Coca-Cola products. Such changes reflect the competitive landscape of the beverage industry, with brands constantly reassessing their partnerships to cater to evolving consumer preferences.

As Subway prepares for this major transition in 2025, the company aims to solidify its position as a favorite destination for food and beverages among consumers across the United States.