Subway to replace Coca-Cola products with Pepsi starting next year

Subway said it will start swapping to Pepsi in 2025

The drink options will look a little different for Subway customers in the U.S. next year.

The restaurant chain, known for its foot-long subs, said Tuesday it will switch to selling PepsiCo beverages across its U.S. locations starting in 2025.

The change is due to a new partnership with PepsiCo that will start in January and run for a decade, according to Subway.

Subway sandwich with Lays chips and Pepsi drink

Subway has inked a 10-year deal with Pepsi for its drink products. (Subway)

U.S. customers can expect to see Pepsi, Pepsi Zero Sugar, Tropicana, Gatorade, Aquafina and other beverages under Pepsi’s umbrella at restaurants once the switch occurs.

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Subway currently offers Coca-Cola products in the U.S. through an agreement it inked with the company in 2003, according to reports.

Ticker Security Last Change Change %
PEP PEPSICO INC. 166.14 +2.33 +1.42%
KO THE COCA-COLA CO. 62.62 +0.07 +0.11%

"For nearly twenty years, The Coca-Cola Company has proudly served Subway restaurants in the U.S. We are committed to serving Subway through the end of this year and will remain focused on delivering value for Subway, their Franchisee Partners, and Consumers," Coca-Cola told FOX Business. 

Subway said next year’s Pepsi pivot across its 20,000 U.S. restaurants will happen "over the course of several months."

PepsiCo

Pepsi products are displayed for sale in a Target store in Los Angeles on March 8, 2022. (Mario Tama / Getty Images)

The chain already carries Pepsi products in some countries.

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It also said Tuesday that Frito-Lay snack products would remain available at American restaurants through 2030. Frito-Lay has been a subsidiary of PepsiCo since a 1965 merger.

PepsiCo

The two moves have a goal of "bringing the [Subway] brand’s U.S. snack and beverage portfolio together under one supplier and driving more efficiency across the system," Subway said.

The restaurant chain has pursued other initiatives related to its meal offerings in the past year. 

Subway employee

An employee prepares a sandwich at a Subway restaurant in Austin, Texas, on Jan. 12, 2023. (Brandon Bell / Getty Images)

In July, for example, it finished adding automatic deli slicers to U.S. locations so that restaurants could start using freshly sliced meats for its sandwiches. 

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Four new sandwich options were rolled out alongside the new equipment, as FOX Business previously reported. That expanded its "Subway Series" menu. 

Subway said in February it has seen positive same-store sales worldwide for 12 back-to-back quarters.