KFC switches from Pepsi to Coca-Cola in U.S. starting 2027

KFC is replacing Pepsi with Coca-Cola products across its U.S. locations. This switch is part of KFC's 'comeback plan' initiated after President Catherine Tan-Gillespie took her role. The beverage vendor change applies to KFC's entire U.S. network and marks a strategic shift for the brand.

Timeline and rollout details for the transition

The transition begins in January 2027. A full rollout across the U.S. system is expected by spring of that year. Coca-Cola products are expected to be available at all U.S. KFC locations by spring. The announcement was made in a Thursday press release from Yum! Brands.

History of the Pepsi-KFC partnership and its end

The partnership with Pepsi lasted roughly four decades. It began when PepsiCo acquired KFC in 1986, at which time KFC was the second-largest Coca-Cola fountain customer behind McDonald's. PepsiCo spun off its restaurant division, which included KFC, Pizza Hut, and Taco Bell, in 1997 but continued to supply beverages under the new parent company, Yum! Brands. The long-standing supply agreement has now ended after about 40 years.

Context: KFC’s comeback strategy and market pressures

The change supports KFC's efforts to evolve its menu and respond to consumer demand. The fast-food landscape is increasingly beverage-driven. KFC's broader comeback plan includes refreshed marketing, new value offerings, and the return of items like potato wedges and popcorn chicken. The brand is experimenting with new drinks and menu items to win back customers. Catherine Tan-Gillespie noted the partnership is another step in the work to evolve KFC, strengthen its restaurants and menu offerings, and create a more relevant experience for today's customers.

KFC President Catherine Tan-Gillespie said, "I'm incredibly excited to bring KFC and Coca-Cola together. These are two originals, with deep consumer love." Coca-Cola’s president of Foodservice & On-Premise, North America, Dagmar Boggs, commented, "This exciting new partnership brings Coca-Cola and KFC together across the U.S. for the first time."

The partnership could lead to new food-and-drink combinations and additional beverage options. Market reaction saw Yum! Brands shares advance 2.7% following the news. Coca-Cola shares edged up 0.2%, while PepsiCo stock slid 0.7%.

What stays the same: Pepsi’s ongoing role elsewhere

PepsiCo will remain a beverage partner for KFC in international markets. The change applies only to the U.S. network, which comprises roughly 3,700 locations. PepsiCo still maintains beverage partnerships with several other major restaurant chains. Taco Bell, a sister brand under Yum! Brands, will continue to serve Pepsi products. Pepsi recently added Subway as a client despite losing other accounts like Marriott and Costco's food courts. The change comes at a fragile time for Pepsi's flagging soft-drink business.

Full rollout across the U.S. system is expected by spring 2027.