Taco Bell extends PepsiCo partnership through 2036

Taco Bell and PepsiCo have renewed their beverage partnership for an additional 11 years, extending their collaboration through 2036. The agreement covers the United States, Canada, Thailand, Ireland, and the United Kingdom. The partnership will focus on developing crafted, functional, and energy beverages to meet evolving consumer trends.

This extension provides a significant win for PepsiCo following the loss of its longstanding contract with KFC, another Yum! Brands chain, which is switching to Coca-Cola. While KFC generates approximately $5 billion in annual sales, Taco Bell is a larger driver for the parent company, reporting $17 billion in US system-wide sales last year.

The two companies have a history of successful product collaborations, including the Doritos Locos Tacos and the Mountain Dew Baja Blast, the latter of which has grown into a $1 billion brand. Taco Bell aims to aggressively expand its beverage segment, targeting $5 billion in revenue by 2030 through new product lines and exclusive offerings.