Overview

• Subway announces a 10-year agreement with PepsiCo to become its exclusive beverage provider in the U.S., starting January 2025, replacing Coca-Cola.
• The deal also extends Subway's existing contract with Frito-Lay, a PepsiCo subsidiary, to supply snacks through 2030.
• Subway's switch to PepsiCo products is part of a broader strategy to streamline its snack and beverage portfolio under one supplier, enhancing efficiency.
• The cola wars continue as PepsiCo and Coca-Cola vie for dominance in the beverage industry, with both companies adopting strategies to appeal to younger consumers.
• PepsiCo's introduction of new products, such as Bubly Burst, and its focus on healthier beverage options reflect its efforts to capture market share among Gen Z consumers.