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KFC is making a major change to its drink lineup, announcing Thursday that it will replace Pepsi with Coca-Cola at its U.S. restaurants, ending a beverage partnership that lasted roughly four decades.
The fried chicken chain said it will begin transitioning to Coca-Cola products in January 2027, with the new beverages expected to be available at all U.S. locations by spring.
The move ends a nearly 40-year relationship that began when PepsiCo acquired KFC in 1986.
Although PepsiCo spun off KFC in 1997, it continued to supply beverages to the chain under its parent company, Yum! Brands.
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KFC President Catherine Tan-Gillespie described the new partnership as part of a broader effort to modernize the chain and give customers more reasons to visit.
“I’m incredibly excited to bring KFC and Coca-Cola together,” Tan-Gillespie said in a statement.
“These are two originals, with deep consumer love,” she continued. “This partnership is about more than what’s in the cup. It is another step in our work to evolve KFC, strengthen our restaurants, menu offerings and create a more relevant experience for today’s customers.”
Under the agreement, Coca-Cola’s beverage portfolio will replace Pepsi products across KFC’s roughly 3,700 U.S. locations.
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KFC also said the partnership could lead to new food-and-drink combinations and additional beverage options as the chain expands its lineup.
Coca-Cola executive Dagmar Boggs also welcomed the partnership.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| YUM | YUM! BRANDS INC. | 150.83 | +4.14 | +2.82% |
“By pairing KFC’s iconic food and flavors with the breadth of Coca-Cola’s beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth possibilities together,” Boggs, Coca-Cola’s president of foodservice and on-premise, said in a statement.
Despite losing KFC’s U.S. business, PepsiCo still maintains beverage partnerships with several major restaurant chains.
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According to Reuters, PepsiCo recently renewed agreements covering Taco Bell and KFC’s international restaurants.
