In 'rare shift,' Subway says it's ditching Coca-Cola products

MIAMI, Fla. (WTAJ) -- For more than 100 years, a war has raged between Coca-Cola and Pepsi, and now Subway restaurants are chiming in with a massive change to their soda machines in the U.S.

Subway, one of the world's largest restaurant brands, announced Tuesday that it had entered a 10-year agreement with PepsiCo to supply its U.S. restaurants, leaving Coke behind in what Restaurant Business Online called a "rare shift."

Under the agreement, starting on Jan. 1, 2025, Subway will offer Pepsi products, including Pepsi, Pepsi Zero Sugar, MTN DEW, Starry, Tropicana, Lipton, Aquafina water and Gatorade. The company said franchisees will have the option to carry a larger selection of Gatorade flavors.

"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."

The deal will take several months to roll out once it begins in 2025, the company said, but it will streamline the company's beverage and snacks by being under one supplier -- PepsiCo.

PepsiCo not only owns Frito-Lay, but also "Yum! Brands," the parent company of Taco Bell, Pizza Hut and KFC, three places that have always had Pepsi products instead of Coca-Cola.

Subway also announced that its deal with the Frito-Lay brand was extended through 2030.

"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.," said Anne Fink, President of PepsiCo Global Foodservice. "Together, we're elevating the consumer experience with dynamic beverage and snack offerings — including those that appeal to a broad spectrum of consumers — bringing new flavors to Subway fans in a powerful way."

PepsiCo is also the current Subway beverage provider in several regions around the world, including Canada, Germany, the Nordics and the Netherlands.

Another fast food brand, Culver's, announced a similar switch last year, ditching its partnership with Pepsi in exchange for Coca-Cola products.