KFC stated on Thursday that its stores in the United States will stop serving beverages from PepsiCo next year and will switch to offering Coca-Cola products instead. This will be the first time in decades that this chain brand under the Yum! Brands umbrella has changed its beverage supplier.
KFC supplies Coca-Cola products in some international markets, but since Pepsi acquired KFC in 1986, PepsiCo's beverages have been served in KFC stores in the United States. At the time of the acquisition, KFC was Coca-Cola's second-largest customer for freshly prepared beverages, only behind McDonald's. Later, PepsiCo split off KFC as well as its sister brands Pizza Hut and Taco Bell – yet even after merging to form PepsiCo Restaurants, the company has remained loyal to its former owner. Without Pepsi, Taco Bell would not serve its iconic Mountain Dew Baja Blast.
This change comes at a time when KFC is attempting to win back American consumers. Previously, many consumers turned to competitors such as Chick-fil-A and Popeyes, abandoning this fast-food chain brand.
A memorandum obtained by CNBC and sent to franchisees and employees shows that KFC's President for the United States, Catherine Tan - Gillespie, wrote: "This decision is a key step in Kentucky Fried Comeback. Launching a new beverage combination with this new partner, Coca-Cola, will provide us with an innovative platform to meet the ever-changing tastes of consumers and give customers more reasons to choose us."
For many fast-food chains, beverages have become an important way to attract consumers. Some restaurants, including McDonald's and Taco Bell, have expanded their beverage options through products such as refresher or “dirty soda”. KFC, on the other hand, recently introduced new beverages such as iced coffee and milkshakes at its innovative restaurant located in Texas, Open House.
Earlier this year, Coca-Cola told CNBC that the company has helped many food and beverage partners develop new drinks.
Tan-Gillespie indicates that KFC expects that by the end of the first quarter of 2027, all its stores in the United States will begin serving Coca-Cola beverages.
Tan-Gillespie also indicates that PepsiCo remains the parent company of KFC as well as an important partner for the international market of this chain brand.
For decades, Coca-Cola and Pepsi have been competing for important food and beverage partners, as this not only signifies sales opportunities but also helps to increase the visibility of their respective beverage brands.
It is not common for large food chain restaurants to change their beverage suppliers, but there have been precedents. In 2024, PepsiCo poached Subway from Coca-Cola – which, based on the number of stores, is the largest food chain in the United States. In recent years, in addition to KFC, Coca-Cola has also acquired several important customers that were formerly part of PepsiCo's camp, including those belonging to Culver, Arby, and Panda Express.












