Subway®? Selects Pepsico as Its Beverage Partner in the U.S
March 19, 2024 at 09:00 am EDT
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Subway announced a 10-year agreement with PepsiCo to supply beverages in U.S. restaurants beginning January 1, 2025. Subway's longstanding partnership with Frito-Lay will also be extended through 2030, bringing the brand's U.S. snack and beverage portfolio together under one supplier and driving more efficiency across the system. Under the new agreement, Subway restaurants will offer a consumer-driven assortment of beverages from the diverse PepsiCo beverages portfolio such as Pepsi®?, Pepsi®?
Zero Sugar, MTN DEW®?, Starry®?, Tropicana®?, Lipton®?, and Gatorade®?. Subway franchisees will also have the option to offer a larger selection of Gatorade beverages. 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.
In addition, the change will provide additional value to franchisees, including all new beverage equipment provided to restaurants. The transition to offer PepsiCo products in all U.S. restaurants will begin in 2025 and rollout over the course of several months. PepsiCo is also the current Subway beverage provider in several regions around the world, including Canada, Germany, the Nordics, and the Netherlands, among others.
PepsiCo, Inc. is one of the worldwide leaders in producing non-alcoholic beverages and snacks. Net sales break down by area of activity as follows:
- North America (60.8%): sale of beverages (49.7% of net sales; sodas, concentrated juices, water, tea and coffee-based beverages; Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Gatorade Zero, Mountain Dew, Pepsi, Propel brands, etc.), snacks (44.7%; chips, tortillas and pretzels; Lay's, Doritos, Tostitos, Cheetos, Fritos, Ruffles, etc.), and cereals (5.6%; ready-to-eat cereals, rice, wheat, etc.);
- Europe (14.5%): sale of snacks (Cheetos, Chipita, Doritos, Lay's, Ruffles and Walkers brands) and beverages (7UP, Diet Pepsi, Lubimy Sad, Mirinda, Pepsi and Pepsi Max);
- Latin America (12.7%): sales of snacks (Cheetos, Doritos, Emperador, Lay's, Mabel, Marias Gamesa, Ruffles, Sabritas, Saladitas and Tostitos brands) and beverages (7UP, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, San Carlos and Toddy)
- Asia/Pacific/Australia/New Zealand (6.7%): sale of snacks (BaiCaoWei, Cheetos, Doritos, Lay's and Smith's brands), beverages and syrups (7UP, Aquafina, Mirinda, Mountain Dew, Pepsi and Sting);
- Africa/Middle East/South Asia (5.3%): sale of snacks (Chipsy, Doritos, Kurkure, Lay's, Sasko, Spekko and White Star brands) and beverages (7UP, Aquafina, Mirinda, Mountain Dew and Pepsi).
Net sales are distributed geographically as follows: the United States (57%), Mexico (7.7%), Canada (4.1%), Russia (3.9%), China (3%), the United Kingdom (2.1%), Brazil (1.9%), South Africa (1.9%) and other (18.4%).
PEPSICO, INC. 
