In a surprising move that has the fast-food world buzzing, Subway has announced a major shakeup in its beverage lineup, marking the end of an era with Coca-Cola and the beginning of a fizzy new partnership with PepsiCo. This significant shift in alliances not only signals a new direction for the sandwich giant but also stirs the pot in the long-standing rivalry between two beverage behemoths.
Subway: The End of a Two-Decade Relationship
For over 20 years, Coca-Cola has been the go-to drink option at Subway, offering a familiar taste of comfort with every sip. Classics like Dasani water, Diet Coke, Sprite, and Fanta have been staples alongside the chain’s diverse sandwich selection. However, all good things must come to an end.
By January 1, 2025, Subway fans will bid farewell to these beloved beverages as the chain transitions to its new drink supplier, PepsiCo.
A New Beverage Era Begins
PepsiCo, a name synonymous with iconic drinks such as Pepsi, Mountain Dew, Tropicana, Aquafina, and Gatorade, is set to take over Subway’s beverage services in a landmark 10-year agreement. This partnership is not just about quenching thirst; it’s a strategic move that aligns with the food joint’s broader vision.
The chain is also strengthening its collaboration with Frito-Lay, a subsidiary of PepsiCo, to offer a comprehensive snack and beverage portfolio under one roof through 2030.
“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.” – Doug Fry, President of the food joint, North America.
A Journey of Transformation
Subway’s pivot to PepsiCo is part of its ambitious “multiyear transformation journey” initiated in 2021. The brand has been on a relentless quest to revamp its menu, introducing innovative offerings like Subway Sidekicks—a series of 12-inch snacks featuring a footlong chocolate chip cookie, a churro, and Auntie Anne’s Pretzel.
Additionally, the renowned sandwich company has recently upped its game with “freshly sliced meats” and four new deli-style sandwiches, further diversifying its culinary repertoire.
Subway is breaking up with these popular drink brands https://t.co/d1HnEqbv7o
— TheStreet (@TheStreet) March 20, 2024
The Fizz Behind the Strategy
The strategic move to PepsiCo isn’t just about changing drink options; it’s a testament to Subway’s agility and commitment to offering an enhanced dining experience. The decision reflects broader trends in the fast-food industry, where adaptability and innovation are key to staying relevant and competitive.
The food joint company’s decision comes at a pivotal moment, following a Jefferies analyst’s note highlighting PepsiCo’s significant growth due to “hefty investments over the last half-decade.” The last time PepsiCo managed to edge out Coca-Cola in market value was in 2006, marking a dramatic chapter in their century-old rivalry.
A Toast to New Beginnings
As Subway fans prepare to say goodbye to Coca-Cola beverages, the anticipation for PepsiCo’s lineup grows. This transition is more than just a change of drinks; it’s a bold step toward the future, promising a refreshing new twist to the Subway experience.
With innovative menu additions and a renewed focus on quality and variety, the company is poised to captivate palates and foster new dining traditions.
In the dynamic world of fast food, Subway’s strategic pivot underscores the importance of evolution and partnership. As the Subway-PepsiCo era dawns, it heralds a promising horizon for the beloved sandwich chain, one filled with exciting possibilities and, of course, deliciously refreshing beverages.
