NEW YORK – PepsiCo has reached an agreement to become the exclusive provider of beverages at all Subway sandwich shops in the United States, replacing rival Coca-Cola as the drink supplier to one of the nation’s largest chains.

Subway announced the new 10-year pact to serve PepsiCo products such as Mountain Dew sodas, Tropicana juices and Gatorade sports drinks on March 19.

Coca-Cola brands such as Sprite, Fanta and Diet Coke will begin to disappear from the sandwich chain beginning in January 2025, and will take several months to replace across Subway’s network of franchisee-owned restaurants. Coca-Cola declined to comment.

Subway, which operates about 20,000 restaurants in the US and nearly 37,000 worldwide, said it is also extending its existing agreement with Frito-Lay, PepsiCo’s snack food unit, to provide chips and snacks at its restaurants through 2030.

PepsiCo already provides beverages at Subway shops in several regions outside the US.

Subway announced a deal in 2023 to be acquired by the Atlanta-based private equity firm Roark Capital Group for nearly US$10 billion (S$13 billion). The deal is pending a Federal Trade Commission investigation, according to Politico. BLOOMBERG