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2 clusters · 9 sources · 1 days · First seen · Last updated

PepsiCo and Taco Bell beverage partnership extension

Overview

PepsiCo has renewed its beverage partnership with Taco Bell, extending the collaboration through 2036. The agreement spans the United States, Canada, Thailand, Ireland, and the United Kingdom, with a strategic focus on developing functional and energy beverages to meet consumer trends.

This extension serves as a significant development for PepsiCo following the loss of its U.S. beverage contract with KFC, which is transitioning to Coca-Cola. While KFC represents substantial annual sales, Taco Bell remains a major driver for the parent company, Yum! Brands. The partnership aims to leverage successful past collaborations, such as Mountain Dew Baja Blast, as Taco Bell targets $5 billion in beverage revenue by 2030.

Concurrently, PepsiCo is managing operational and financial shifts, including the closure of a bottling plant in Knoxville, Tennessee, which will affect 112 employees. The company has also lowered its 2026 earnings outlook due to margin compression in its North American beverages business.

Entities

PepsiCo · Taco Bell · KFC · Yum! Brands · Yum Brands

Timeline

  1. [BUSINESS] 7 sources
    Taco Bell extends PepsiCo partnership through 2036

    Taco Bell has extended its partnership with PepsiCo through 2036, covering several international markets and focusing on new beverage innovations to drive growth.

  2. [BUSINESS] 2 sources
    PepsiCo closes Tennessee bottling plant and renews Taco Bell partnership

    PepsiCo is closing a Knoxville, Tennessee bottling plant affecting 112 workers while renewing its Taco Bell partnership through 2036 amid lowered earnings guidance.

Sources

dexerto.com · econoTimes.com · it-boltwise.de · kion546.com · krdo.com · kvia.com · nrn.com · theascent.com · voeazul.com.br