Fast-food chain KFC has signed an agreement to switch its U.S. beverage provider from PepsiCo to The Coca-Cola Company, marking the first time in decades that the Yum Brands chain has changed its drink supplier.
Decades of Loyalty Ends as KFC Switches to Coca-Cola
KFC U.S. restaurants have maintained their partnership with PepsiCo since Pepsi purchased the fried chicken chain in 1986. At the time of that acquisition, KFC stood as Coca-Cola’s second-largest fountain account, sitting behind only McDonald’s. Although Pepsi later spun off KFC alongside sister chains Taco Bell and Pizza Hut into what became Yum Brands, the fried chicken restaurants remained loyal to PepsiCo. That long-standing arrangement is now coming to an end, dealing a notable blow to PepsiCo as the company works to improve its domestic sales.
JUST IN: KFC is switching from PepsiCo to Coca-Cola as its beverage supplier for US restaurants, its first change in decades, with the rollout expected to be complete by early 2027.
— https://x.com/HIT/status/2110828228914901470
The transition is slated to begin in January 2027, with the full rollout expected to reach all U.S. restaurants by the end of the first quarter or spring of 2027. According to company data, there are 3,718 KFC locations operating across the United States. While the domestic change brings Coke products to U.S. stores for the first time in decades, Catherine Tan-Gillespie noted that Pepsi remains an important partner for KFC’s parent company as well as for the chain’s international markets, where some locations already serve Coke products. Sister chain Taco Bell will continue to offer beverages like Mountain Dew Baja Blast.
Strategic Shift and Industry Shuffling
Beverages have grown into a critical instrument for fast-food brands seeking to attract consumers, with chains introducing items like refreshers and specialized iced coffees and shakes. Dagmar Boggs, President of Foodservice & On-Premise for North America at The Coca-Cola Company, welcomed the collaboration. 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, delight KFC guests, serve KFC Restaurant Teams, and unlock new growth possibilities together, Boggs said.
While major restaurant chain switches are unusual, they are not entirely without precedent in the fast-food industry. PepsiCo previously secured a major account in 2024 by poaching Subway—the largest U.S. restaurant chain by number of locations—away from Coca-Cola. Meanwhile, Coca-Cola has successfully recruited several notable former Pepsi customers in recent years, adding brands such as Culver’s, Arby’s, and Panda Express to its roster before capturing the KFC account.