Subway on Tuesday 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, Aquafina, 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 partnership with PepsiCo is an exciting milestone in our journey to become America’s favorite place to eat, drink and work,” says 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.”

As part of the ongoing brand partnership, consumers can look forward to seeing Subway and PepsiCo brands enjoyed together in exciting marketing and media partnerships.

“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.,” adds Anne Fink, president, 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.”

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.