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The Soda Wars Intensify as Subway Switches to PepsiCo Beverages

In the ongoing battle of the bubbly, Subway has made a seismic shift in its beverage offerings, opting to end its nearly two-decade partnership with Coca-Cola in favor of PepsiCo products. The announcement, made on March 19, revealed a new 10-year agreement between Subway and PepsiCo, set to take effect on January 1, 2025, across all U.S. locations.

This change means that Subway customers will have just nine more months to indulge in their Coca-Cola fix alongside their favorite Footlong Cookies before the transition to PepsiCo beverages begins.

A representative from Subway expressed gratitude for the long-standing partnership with Coca-Cola, acknowledging its significant role in the franchise’s business over the years. However, the decision to switch to PepsiCo reflects a strategic move for Subway, aiming to streamline operations and enhance efficiency by consolidating its snack and beverage portfolio under a single supplier.

Moreover, Subway’s extended partnership with Frito-Lay, a entirely-owned subsidiary of PepsiCo, through 2030, further solidifies this strategic alignment, promising a more cohesive experience for Subway patrons.

As the soda wars continue to bubble, this move by Subway signifies a significant shift in the beverage landscape within the fast-food industry, setting the stage for intensified competition between the two beverage juggernauts, Coca-Cola and PepsiCo.

After talking to one of our Dothan Subway shops, a Manager stated “She was interested in knowing how her regular customers will feel about the change.”