Subway India has concluded its five-year exclusive agreement with PepsiCo India for selling its products at the sandwich and salad chain's outlets. Instead, the company has entered into a new partnership with rival Coca-Cola, according to informed executives.
A representative stated that all 570-plus Subway stores in India will exclusively offer Coca-Cola's range of soft drinks, juices, coffee, tea, and water. According to a report of Economic Times, A Coca-Cola spokesperson confirmed the deal with Subway. We constantly join forces with different brands.
The sandwich chain is in the process of incorporating Coca-Cola drinks into its online ordering app, available on aggregator platforms like Swiggy and Zomato. It's noteworthy that Subway India and PepsiCo had initially announced their partnership in 2018.
Establishing exclusive beverage partnerships with prominent food service chains is a key driver for substantial sales through out-of-home and delivery channels for companies such as PepsiCo and Coca-Cola. Globally, Coca-Cola has an exclusive partnership with McDonald's. In India, Yum Brands-owned establishments like KFC, Pizza Hut, and Taco Bell (operated by Devyani International, Sapphire Foods, and Burman Hospitality, respectively), along with Jubilant FoodWorks' Domino's Pizza, have exclusive associations with PepsiCo.
PepsiCo India vice president George Kovoor told ET that the company does not comment on specific partnerships. "Having said that, we continue to work with industry leaders in critical channels, ET reported.