KFC to replace Pepsi with Coca-Cola in U.S. restaurants

KFC has announced a major shift in its beverage supply chain, choosing to replace PepsiCo products with Coca-Cola beverages across its United States locations. The transition is scheduled to begin in January 2027, with the goal of having Coca-Cola products available in approximately 3,700 American restaurants by the spring of that year.

This decision ends a partnership between KFC and PepsiCo that dates back to 1986, a period when PepsiCo owned the fast-food chain. Although PepsiCo spun off its restaurant division in 1997, it continued to serve as the primary beverage provider for KFC under its new parent company, Yum! Brands. The move is part of a broader strategic initiative by KFC known as the ‘Kentucky Fried Comeback,’ aimed at revitalizing the brand and enhancing the customer experience.

The shift represents a significant competitive win for Coca-Cola and a setback for PepsiCo, which has recently faced challenges including sluggish soda sales in North America and pressure from activist investor Elliott Investment Management. While the change is specific to the U.S. market, PepsiCo will maintain its beverage supply agreements for KFC International and Taco Bell.