KFC selects Coca-Cola as new U.S. beverage supplier, ending PepsiCo tie

KFC disclosed that it will switch its U.S. beverage supplier to Coca-Cola, with the new products slated to appear in restaurants by spring 2027. The move terminates a decades-long partnership with PepsiCo that originated during PepsiCo's ownership of the chain. Although PepsiCo continues to supply drinks to KFC’s international locations through Yum Brands, the two companies have recently renewed contracts for Taco Bell and KFC International.

PepsiCo is currently working on a turnaround of its North American operations amid higher costs and soft snack demand, a challenge noted by CEO Ramon Laguarta. No financial details of the Coca-Cola agreement were released. The change reflects a strategic shift for KFC’s U.S. market.