[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

3 clusters · 38 sources · 10 days · First seen · Last updated

KFC United States beverage supplier transition

Overview

KFC is transitioning its United States beverage supplier from PepsiCo to Coca-Cola, ending a partnership that has lasted since 1986. The transition is scheduled to begin in January 2027, with Coca-Cola products expected to be available across all approximately 3,718 U.S. locations by spring 2027.

The shift is part of a strategic initiative by Yum! Brands called the ‘Kentucky Fried Comeback,’ which aims to modernize the menu and revitalize the brand. KFC U.S. President Catherine Tan-Gillespie described the move as a ‘critical step’ in creating a ‘more relevant experience for today’s customers.’

In response to the loss of the KFC U.S. account, PepsiCo has secured an 11-year agreement to remain the beverage partner for Taco Bell through 2036. This 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. The agreement ensures the continued supply of brands such as Pepsi, Pepsi Zero Sugar, Mountain Dew, and Starry, including exclusives like Mountain Dew Baja Blast.

While PepsiCo loses the domestic KFC contract, it will maintain beverage agreements with KFC’s international markets and continues its partnership with Taco Bell. The loss of the KFC account represents a setback for PepsiCo as it navigates rising costs and pressure from activist investor Elliott Investment Management, while the Taco Bell renewal serves as a strategic move to mitigate the impact within the Yum! Brands ecosystem.

Entities

PepsiCo · Coca-Cola · KFC · Yum! Brands · Catherine Tan-Gillespie

Timeline

  1. [BUSINESS] 5 sources
    PepsiCo secures long-term Taco Bell deal amid KFC beverage supplier shift

    PepsiCo has renewed its beverage partnership with Taco Bell through 2036, securing its presence in the US and abroad following KFC's decision to switch to Coca-Cola in its American restaurants by 2027.

  2. [BUSINESS] 10 sources
    KFC to replace Pepsi with Coca-Cola in U.S. restaurants

    KFC will replace PepsiCo with Coca-Cola as its beverage provider in all U.S. restaurants starting January 2027, ending a partnership that has lasted nearly 40 years.

  3. [BUSINESS] 23 sources
    KFC to switch to Coca-Cola as U.S. beverage supplier in 2027

    KFC will replace PepsiCo with Coca-Cola as its beverage supplier in all U.S. restaurants by spring 2027, ending a nearly 40-year partnership to help revitalize the brand.

Sources

africa.businessinsider.com · analistamodelosdenegocios.com.br · anchetaonline.ro · biznis.rs · bonitet.com · businesscover.ro · bydlet.cz · conservativedailynews.com · econoTimes.com · enterprisewired.com · exame.com · finchannel.com · formosadeportiva.com.ar · gandul.ro · gulf-insider.com · ibtimes.co.uk · indiaweekly.biz · it-boltwise.de · journaldeleconomie.fr · kuchnia.wp.pl · livenowfox.com · marketingovenoviny.cz · norvanreports.com · ntd.com · nyreport.com · penize.cz · qsrweb.com · queondamagazine.com · sapo.pt · stheadline.com · thatparkplace.com · thegeorgiasun.com · time.news · toray.co.jp · trendhunter.com · trumedia.ro · vg.hu · westafricaweekly.com

This summary has been updated 4 times: see revision history