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KFC is making a major change to its beverage lineup, announcing Thursday that it will replace Pepsi with Coca-Cola in its U.S. restaurants, ending a beverage partnership that lasted about four decades.
The fried chicken chain announced it will begin transitioning to Coca-Cola products in January 2027, with the new drinks expected to be available in all U.S. locations by spring.
The move ends a nearly 40-year relationship that began when PepsiCo acquired KFC in 1986.
Although PepsiCo created KFC in 1997, it continued to supply beverages to the chain under its parent company, Yum! Marks.
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KFC announced Thursday that it will replace Pepsi with Coca-Cola in its U.S. restaurants, ending a beverage partnership that lasted nearly four decades. (jewhyte/Getty Images / Getty Images)
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 come.
“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’s another step in our work to evolve KFC, strengthen our restaurants, our menu offerings and create a more relevant experience for today’s customers.”
Under the terms of the deal, Coca-Cola’s beverage portfolio will replace Pepsi products at KFC’s approximately 3,700 U.S. locations.
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Coca-Cola will become KFC’s new beverage partner in the United States, with the restaurant chain replacing Pepsi products starting in 2027. (Patrick T. Fallon / AFP via Getty Images / Getty Images)
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.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| YUM | YUM! MARQUES INC. | 150.83 | +4.14 | +2.82% |
“By combining KFC’s iconic foods and flavors with Coca-Cola’s breadth of beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth opportunities together,” Boggs, Coca-Cola’s president of foodservice and on-premises services, said in a statement.
Despite the loss of KFC’s U.S. operations, PepsiCo still maintains beverage partnerships with several major restaurant chains.
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PepsiCo and KFC’s nearly 40-year beverage relationship is coming to an end at the fried chicken chain’s U.S. restaurants. (Mario Tama/Getty Images/Getty Images)
According to Reuters, PepsiCo recently renewed its agreements covering Taco Bell and KFC’s international restaurants.
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