Subway restaurants announced a major new partnership today, naming PepsiCo as their exclusive beverage and snack provider across their extensive U.S. network of locations.
Under the new multi-year agreement, PepsiCo’s vast portfolio of drinks and salty snacks will replace previous suppliers at the approximately 22,000 Subway restaurants nationwide. This includes offerings such as Pepsi, Mountain Dew, Gatorade, Lay’s potato chips, Doritos, Cheetos, and SunChips.
The partnership represents one of the largest beverage deals in the QSR industry. Financial terms were not disclosed.
It aligns Subway, one of the world’s largest quick-service restaurant brands, with PepsiCo’s dominant position in the food and beverage space in the United States. Both companies cited shared values around promoting better nutritional options as a driving force behind the new alliance.
“With PepsiCo’s diverse product portfolio, we have a partner that can help us meet the changing tastes of today’s consumers with beverages and snacks for all drinking and snacking occasions,” said Subway CEO John Chidsey. “Subway fans across the U.S. will have access to PepsiCo’s top-selling products when dining at one of our restaurants.”
The partnership builds on Subway’s recent Eat Fresh Refresh initiative to bring more innovative items to its menus, from new protein options to bread improvements. PepsiCo’s wide range of products provides additional choice for guests.
“We’re thrilled to partner with such an iconic brand like Subway and be its provider of craveable, refreshing beverages and convenient, crispy snacks,” said PepsiCo Foodservice CEO Scott Finlow. “This partnership allows us to deliver culinary innovations to Subway guests nationally.”
The national PepsiCo rollout to Subway locations begins immediately. To celebrate, restaurants will be offering special combo meal deals in the months ahead.
