KFC will end its exclusive 40-year U.S. beverage partnership with PepsiCo. The fast-food chain will transition to serving Coca-Cola products instead.
The transition begins in January 2027. All U.S. restaurants expect to complete the switch by spring 2027.
The partnership dates back to PepsiCo’s acquisition of KFC in 1986. PepsiCo remains the beverage supplier for Taco Bell and international KFC locations.
The move marks a significant loss for PepsiCo’s domestic food-service division. Analysts view the change as a setback for PepsiCo’s U.S. beverage sales, which currently face weak demand and rising costs.