TEXAS, USA– KFC will begin replacing Pepsi products with Coca-Cola drinks at its US restaurants in January 2027, with the transition expected to be completed by spring. The change ends a partnership dating back to 1986, when PepsiCo acquired the fried-chicken chain as part of its expansion into the restaurant business.
Although PepsiCo spun off its restaurant business in 1997, the beverage partnership continued for nearly three more decades. KFC is now turning to Coca-Cola as part of a broader effort to refresh its menu and attract customers.
The decision is a setback for PepsiCo at a time when the company is facing sluggish demand and rising costs in North America. Reuters reported that analysts expect the immediate financial impact to be manageable, but the loss of a major restaurant customer could raise questions about PepsiCo’s other long-standing food-service partnerships. The switch applies to KFC restaurants in the United States; PepsiCo will continue supplying drinks to KFC locations internationally and to Taco Bell under separate agreements.
