# PepsiCo and Taco Bell beverage partnership extension > Live situation record from CLSTR: https://clstr.news/situations/pepsico-and-taco-bell-beverage-partnership-extension > Updated: 2026-10-22T15:02:28.000Z. Sources: 9. Developments: 2. 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. ## Timeline ### 2026-10-22: 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. 7 sources. https://clstr.news/cluster/taco-bell-extends-pepsico-partnership-through-2036 ### 2026-10-22: 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. 2 sources. https://clstr.news/cluster/pepsico-closes-tennessee-bottling-plant-and-renews-taco-bell-partnership --- Cite as: PepsiCo and Taco Bell beverage partnership extension. CLSTR, https://clstr.news/situations/pepsico-and-taco-bell-beverage-partnership-extension