KFC picks Coca-Cola over Pepsi. Here's when it starts

Key Points:

• KFC is ending its nearly 40-year beverage partnership with Pepsi and will replace Pepsi products with Coca-Cola beverages at approximately 3,700 U.S. restaurants starting January 2027, with full transition expected by spring.
• The switch follows PepsiCo's 1986 acquisition and later separation from KFC, and aims to modernize KFC's menu and restaurant experience, potentially introducing new beverage options and food-and-drink combinations.
• Coca-Cola's portfolio, including Sprite, Fanta, and Dasani, will replace Pepsi's lineup at KFC, though specific products to be offered have not been detailed; the partnership is expected to foster innovation and new customer experiences.
• The change is a setback for PepsiCo, which is already facing challenges in soda sales and investor pressure, as KFC is one of its largest U.S. restaurant partners; PepsiCo will continue supplying beverages to Taco Bell and KFC's international locations.
• KFC's strategic shift reflects efforts to revive U.S. sales by expanding menu offerings beyond traditional chicken and leveraging specialty drinks to attract customers, while Coca-Cola strengthens its fast-food market presence through this new partnership.