KFC is replacing Pepsi with Coca-Cola at its restaurants in the United States, ending a beverage partnership with PepsiCo that has lasted around 40 years, RT reported.
The Coca-Cola Company and KFC announced the new deal on October 15. KFC will start moving its US drinks menu to Coca-Cola products in January 2027, and all of its roughly 3,600 US restaurants are expected to serve them by spring 2027.
KFC’s US outlets have served Pepsi drinks since PepsiCo bought the chain in 1986. PepsiCo spun KFC off in 1997, but the chain and its parent company, Yum Brands, stayed with Pepsi.
KFC US President Catherine Tan-Gillespie said the partnership is part of the company’s effort to evolve the brand and give customers a more relevant experience. The chain has been losing American diners to rivals such as Chick-fil-A and Popeyes.
What It Means for PepsiCo
Bank of America analysts estimate the loss of KFC could cost PepsiCo about $500 million in annual sales, Reuters reported. Financial terms of the Coca-Cola deal were not disclosed.
The switch applies only to the US PepsiCo spokesperson told Reuters that the company recently renewed its agreements covering Taco Bell and KFC’s international stores.
The cola giants have fought over restaurant partners for decades, while newer brands such as Salaam Cola are also trying to take them on. In Pakistan, Coca-Cola has been part of daily life for more than seven decades.
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