KFC will replace Pepsi with Coca-Cola at its U.S. restaurants starting January 2027. Financial terms were not disclosed.
LOUISVILLE, Ky. – KFC said Thursday that it will switch its U.S. restaurants from PepsiCo to Coca-Cola drinks in 2027, ending a partnership that began in 1986. The transition is set to begin in January, with Coca-Cola products expected in all of KFC’s roughly 3,700 U.S. restaurants by spring 2027. Financial terms were not disclosed. It is the Yum Brands chain’s first beverage supplier switch in decades, CNBC reported.
The relationship began when PepsiCo bought KFC in 1986. PepsiCo spun off KFC, Pizza Hut and Taco Bell in 1997 into the company that became Yum Brands, which kept Pepsi as its beverage partner. KFC U.S. President Catherine Tan-Gillespie said the new partnership gives the brand a platform to innovate and meet changing tastes. KFC described the deal as part of its “Kentucky Fried Comeback” plan. Dagmar Boggs, president of foodservice and on-premise for North America at Coca-Cola, said the partnership would combine KFC’s food with Coca-Cola’s beverage portfolio. The companies plan to develop food-and-drink pairings and expand beverage choices.
PepsiCo said Yum Brands and PepsiCo have renewed agreements covering Taco Bell and KFC’s international stores, Reuters reported. Tan-Gillespie said Pepsi remains an important partner for Yum and for KFC outside the United States. Some KFC markets abroad already serve Coca-Cola drinks.
Coca-Cola already has long partnerships with McDonald’s and Wendy’s, Reuters reported, and in recent years has won accounts including Culver’s, Arby’s and Panda Express. CNBC reported that Pepsi won Subway’s business in 2024. It is unusual for large restaurant chains to change beverage suppliers but not unprecedented.
This report draws on information from CNBC, Reuters, Yahoo Finance, Fox Business and statements from KFC and Coca-Cola.