PepsiCo secures long-term Taco Bell deal amid KFC beverage supplier shift

PepsiCo has signed an 11-year agreement to remain the beverage partner for Taco Bell through 2036. The deal covers participating Taco Bell restaurants, Taco Bell Cantina, and Live Más Cafe locations in the United States, as well as locations in Canada, the United Kingdom, Ireland, and Thailand.

This renewal follows an announcement from KFC that it will replace Pepsi products with Coca-Cola across its 3,718 United States restaurants starting in January 2027. The KFC transition ends a partnership with PepsiCo that had been in place since 1986. While KFC's domestic beverage offerings will shift to Coca-Cola, its international locations are expected to continue using Pepsi products.

The Taco Bell agreement preserves the supply of Pepsi, Pepsi Zero Sugar, Mountain Dew, and Starry, along with exclusives like Mountain Dew Baja Blast. Retaining Taco Bell is seen as a strategic move for PepsiCo to mitigate the impact of losing the KFC account within the Yum Brands ecosystem.