KFC U.S. drops Pepsi for Coca-Cola after nearly 40 years
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The gist
KFC U.S. announced a new beverage partnership with Coca-Cola, ending its U.S. tie to PepsiCo.
The switch covers thousands of U.S. restaurants and backs KFC's comeback push.
Background
KFC is the fried-chicken chain owned by Yum! Brands, and PepsiCo had supplied its U.S. drinks since buying the chain in 1986, keeping the pouring rights even after spinning KFC off in 1997. KFC U.S. President Catherine Tan-Gillespie framed the Coca-Cola deal as part of a broader effort to refresh the menu and beverage platform and revive the brand's U.S. business. The change covers only U.S. restaurants; PepsiCo remains KFC's beverage partner internationally.
How it unfolded
- 1986PepsiCo acquired KFC and kept the pouring rights even after spinning the chain off into Yum Brands in 1997.
- 1997PepsiCo spun off KFC but continued to supply beverages to the chain under its parent company, Yum! Brands.
- Oct 15, 2026KFC U.S. announced a new beverage partnership with The Coca-Cola Company, ending its U.S. relationship with PepsiCo.
- Jan 2027KFC will begin transitioning its U.S. beverage partnership to The Coca-Cola Company.
- spring 2027Coca-Cola products are expected to be served in all U.S. restaurants.
Who’s saying what
- Official
- KFC U.S. President Catherine Tan-Gillespie said the deal is about more than what's in the cup and is another step in evolving KFC and creating a more relevant experience for today's customers.
- Official
- Coca-Cola's Dagmar Boggs said the partnership brings Coca-Cola and KFC together across the U.S. for the very first time.
- Analysts
- Freedom Capital Markets strategist Jay Woods said losing a big-name brand partner is a bad look for PepsiCo and could be the optical straw that breaks the camel's back.
- Caution
- PepsiCo CEO Ramon Laguarta said earlier this month that growth and margin recovery was taking longer than planned.
Still unverified
The number of affected U.S. locations is reported differently: roughly 3,700 by Fox Business, 3,718 by the New York Post, and 3,600 by Coca-Cola and Business Insider Africa.