KFC ditches Pepsi after 40 years, partners with Coca-Cola
What's the story
KFC is making a major change to its beverage lineup. The fast-food giant has announced that it will be replacing Pepsi with Coca-Cola at all its US outlets. The transition marks the end of a nearly four-decade-long partnership between KFC and PepsiCo, which started when the latter acquired KFC in 1986.
Implementation timeline
Transition to Coca-Cola products begins January 2027
The transition to Coca-Cola products will begin in January 2027, with the new beverages expected to be available at all US locations by spring.
The move comes as part of KFC's broader strategy to modernize its offerings and attract more customers.
KFC President Catherine Tan-Gillespie said she was "incredibly excited" about the partnership with Coca-Cola, calling it a step toward evolving KFC and strengthening its restaurants and menu offerings.
Partnership details
New food-and-drink combinations expected under Coca-Cola partnership
As part of the agreement, Coca-Cola's beverage portfolio will replace Pepsi products across KFC's approximately 3,700 US locations.
The partnership could also lead to new food-and-drink combinations and expanded beverage options as KFC looks to diversify its menu.
Coca-Cola executive Dagmar Boggs welcomed the partnership, saying, "By pairing KFC's iconic food and flavors with the breadth of Coca-Cola's beverage portfolio, we have an opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth possibilities together."
Industry impact
Impact on PepsiCo and beverage wars
Despite losing KFC's US business, PepsiCo still has beverage partnerships with other major restaurant chains.
The company recently renewed contracts with Taco Bell and KFC's international restaurants.
The decision to switch beverage suppliers is not unprecedented in the industry, but it is rare for large restaurant chains to make such a move.
In 2024, Pepsi had poached Subway from Coke, while Coca-Cola has also gained several notable Pepsi customers in recent years, including Culver's and Arby's.