Business

KFC Ends Decades-Long Pepsi Partnership, Chooses Coca-Cola for U.S. Restaurants

Published: 16 October 2026 · 1 min read

What Happened

KFC announced a new U.S. beverage partnership with Coca-Cola, ending a long-standing relationship with PepsiCo that dates back to Pepsi’s ownership of the chain in the 1980s. Coca-Cola products will begin rolling out at KFC’s U.S. restaurants in January 2027 and are expected to be available nationwide by spring 2027. Financial terms were not disclosed.

Key Takeaways

The agreement marks a significant shift in the U.S. fast-food beverage market. While PepsiCo will lose KFC’s U.S. fountain-drink business, it said beverage agreements remain in place with Taco Bell and KFC International restaurants.

Sources

Coca-Cola Company, CNBC, Reuters