KFC U.S. restaurants will ditch PepsiCo and switch to Coca-Cola beverages next year, cnbc.com reported.
The upcoming transition marks the first time in decades that the Yum Brands fried chicken chain has changed its drink supplier. While certain international markets already serve Coke products, domestic locations have maintained the PepsiCo partnership since Pepsi acquired KFC in 1986. At the time of that original acquisition, KFC stood as Coca-Cola’s second-largest fountain account, trailing only McDonald’s. Pepsi subsequently spun off KFC along with sister chains Pizza Hut and Taco Bell to form Yum Brands, but the corporate family retained its loyalty to PepsiCo.
Without the ongoing relationship with Pepsi, Taco Bell would not serve its iconic Mountain Dew Baja Blast.
The Kentucky Fried Comeback
The beverage shift arrives as KFC attempts to win back U.S. diners from competitors like Chick-fil-A and Popeyes. Catherine Tan-Gillespie, KFC U.S. president, outlined the strategic stakes in an internal memo to franchisees and employees obtained by cnbc.com.
“This decision is a critical step in the Kentucky Fried Comeback,” Tan-Gillespie wrote in the memo. “A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us.”
Beverage lineups have turned into a critical way to attract consumers. Competitors such as McDonald’s and Taco Bell have broadened their drink offerings by introducing refreshers or “dirty soda.” KFC has similarly tested new beverage concepts, unveiling iced coffees and shakes at its Open House innovation restaurant in Texas. Executives at Coca-Cola indicated earlier this year that the beverage giant has actively collaborated with restaurant partners to develop custom drink offerings.
KFC expects to be pouring Coke beverages in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said.
A Competitive Beverage Landscape
The move underscores a fierce, ongoing rivalry between Coke and Pepsi to lock down high-volume restaurant accounts, which serve both as lucrative sales channels and vital billboards for brand visibility. While large-scale switches among major fast-food operators remain uncommon, the market has seen notable realignments recently. In 2024, Pepsi successfully poached Subway—the largest U.S. restaurant chain measured by number of locations—away from Coca-Cola. Meanwhile, Coke has steadily peeled away several prominent former Pepsi accounts, including Culver’s, Arby’s, and Panda Express.
Despite the domestic pivot away from Pepsi, Tan-Gillespie noted that Pepsi remains an important partner for KFC’s parent company and the chain’s international operations.
