KFC is replacing Pepsi with Coca-Cola at its U.S. restaurants after nearly 40 years of partnership with PepsiCo

KFC announced on Thursday, October 15, that it will replace PepsiCo with Coca-Cola as the beverage supplier for its restaurants in the United States. Coca-Cola products will be introduced by spring 2027 across all 3,718 U.S. locations of the chain. The value of the contract was not disclosed.

The decision ends a nearly four-decade commercial relationship. PepsiCo bought KFC in the 1980s, and the chain continued to sell the company’s beverages even after the restaurant businesses were separated in 1997 and KFC was acquired by Yum Brands.

The change comes at a difficult time for PepsiCo, which is trying to revive its beverage sales in the United States and is under pressure from investors to improve its results. Losing KFC could have a significant impact on the company’s image, even though the financial effects are unknown.

The agreement applies exclusively to the U.S. market. PepsiCo said it recently renewed its partnerships with KFC International and Taco Bell, meaning KFC restaurants in Romania will not automatically change suppliers. The rivalry between Coca-Cola and PepsiCo is thus expanding further into the restaurant industry, where the two companies have agreements with some of the largest fast-food chains.