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KFC drops Pepsi for Coca-Cola in the US, ending 40-year partnership
Fox Business • • business
Key Points:
- KFC announced it will replace Pepsi with Coca-Cola products at its approximately 3,700 U.S. locations, starting the transition in January 2027 and completing it by spring.
- This change ends a nearly 40-year beverage partnership that began when PepsiCo acquired KFC in 1986, though PepsiCo continued supplying drinks after spinning off KFC in 1997.
- KFC President Catherine Tan-Gillespie emphasized the new partnership as part of efforts to modernize the chain, enhance customer experience, and introduce new food-and-drink combinations.
- Coca-Cola's president of foodservice, Dagmar Boggs, highlighted the opportunity to create memorable consumer experiences and drive growth through the collaboration with KFC.
- Despite losing KFC's U.S. business, PepsiCo retains beverage agreements with other major chains, including Taco Bell and KFC's international locations.
