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Taco Bell sticks with Pepsi as sister chain switches to Coke
KSL News • • business
Key Points:
- Taco Bell has extended its partnership with PepsiCo for another decade, continuing to serve the Mountain Dew Baja Blast brand through 2036, despite KFC ending its contract with PepsiCo in favor of Coca-Cola.
- This deal is significant for PepsiCo, as Taco Bell's U.S. systemwide sales reached $17 billion last year, far surpassing KFC's $5 billion, providing a crucial boost amid declining North American beverage sales.
- The collaboration will focus on developing new beverages and food items, including new Baja Blast flavors and limited-time offerings like a pink lemonade variant featuring singer Olivia Rodrigo.
- Taco Bell aims to expand its beverage revenue to $5 billion by 2030, leveraging exclusive drink options like the "Refrescas" lineup to attract consumers seeking value amid rising food prices.
- Both companies plan to innovate in emerging beverage trends, including crafted, functional, and energy drinks targeting Gen Z, to capture new consumption occasions throughout the day.
