US – Subway, the largest fast-food chain in the U.S., has announced a significant change in its beverage offerings, revealing plans to transition from Coca-Cola to PepsiCo beginning January 1, 2025. 

The sandwich giant disclosed a 10-year partnership with PepsiCo to supply beverages in its U.S. locations, introducing a diverse range of PepsiCo products including Pepsi, Mountain Dew, Tropicana, and a wider selection of Gatorade flavors. 

In a press release, Subway emphasized its commitment to enhancing guest experience, stating, “The new agreement underscores Subway’s commitment to delivering better food and a better guest experience, which includes ensuring the brand’s beverage offerings align with guest preferences across demographics.” 

Although the switch to PepsiCo beverages is set for 2025, Subway anticipates a gradual transition across its U.S. outlets over several months. 

This move marks the end of a longstanding relationship with Coca-Cola, which dates back to a 15-year deal signed in 2003.  

Despite the change, Coca-Cola expressed appreciation for the partnership, affirming its dedication to serving Subway through the remainder of the year. 

Coca-Cola said: “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.” 

According to Subway, the decision to switch beverage providers is driven by guest preferences and is expected to offer additional value to franchisees, including the provision of new beverage equipment to restaurants. 

Furthermore, Subway’s collaboration with Frito-Lay, a PepsiCo subsidiary, will extend through 2030, further solidifying the brand’s ties with PepsiCo. 

As of January 2024, Subway boasts nearly 20,000 locations in the U.S. and nearly 37,000 worldwide, making this transition a significant operational change for the renowned sandwich chain. 

Purchase unveils Bubbly Burst 

Concurrently, PepsiCo subsidiary in the US, Purchase, has launched bubbly burst in the sparkling water category.  

The new bubly burst is a flavor-forward, lightly sweetened sparkling water beverage with bold fruit flavors, bright colors, zero added sugar and minimal calories, the company says. 

“Since we created and launched the bubly brand six years ago, bubly has taken the sparkling water category by storm — skyrocketing to the No. 1 brand in awareness, and the No. 1 most preferred sparkling water brand in the marketplace,” said Todd Kaplan, chief marketing officer for sparkling water and Pepsi. 

New bubly burst is available in six flavors: Triple Berry, Peach Mango, Watermelon Lime, Pineapple Tangerine, Cherry Lemonade and Tropical Punch. 

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE