From CNBC · Amelia Lucas · · 1m 20s
KFC ditches Pepsi for Coca-Cola in U.S. restaurants
KFC ends a four-decade relationship with PepsiCo to switch to Coca-Cola beverages across U.S. locations, part of a bid to win back customers.
In brief
KFC ends a four-decade relationship with PepsiCo to switch to Coca-Cola beverages across U.S. locations, part of a bid to win back customers. KFC is switching from PepsiCo to Coca-Cola as its U.S. beverage supplier in 2027, ending a partnership that began when Pepsi acquired the chain in 1986. Originally reported by…
Four decades end
KFC's U.S. restaurants will switch from PepsiCo to Coca-Cola beverages next year, marking the first time in decades the Yum Brands chain has changed its drink supplier.
A long partnership
KFC's U.S. restaurants have served Pepsi drinks ever since PepsiCo bought KFC in 1986. At that time, KFC was Coke's second-largest fountain account, trailing only McDonald's.
Winning back diners
KFC aims to win back U.S.diners who have ditched the fried chicken chain for rivals like Chick-fil-A or Popeyes.KFC U.S.President Catherine Tan-Gillespie called the switch a critical step in the Kentucky Fried Comeback.
“This decision is a critical step in the Kentucky Fried Comeback.”
Beverages as strategy
For many fast-food chains, beverages have become critical to attracting consumers. KFC recently unveiled new drinks like iced coffees and shakes at its Open House innovation restaurant in Texas.
Timeline and precedent
KFC expects to pour Coke beverages in all U.S.restaurants by the end of the first quarter of twenty twenty-seven.Large restaurant chains rarely switch beverage providers, but Pepsi poached Subway from Coke in twenty twenty-four.
The key point
KFC is switching from PepsiCo to Coca-Cola as its U.S. beverage supplier in 2027, ending a partnership that began when Pepsi acquired the chain in 1986.
