pepsicolosesfourdecadekfcuspartnership

🥤 KFC Chooses Coca-Cola, Ends 40-Year Partnership With PepsiCo in the US

🔄 Major Beverage Partnership Shift
KFC has selected Coca-Cola as its beverage supplier for its 3,718 US restaurants, ending a partnership with PepsiCo that lasted approximately four decades. Coca-Cola products are expected to arrive at KFC locations by spring 2027.

📉 Potential Setback for PepsiCo
The loss comes as PepsiCo faces challenges from rising costs, slowing soda sales, and growing consumer demand for healthier products. The company is also under pressure from activist investor Elliott Investment Management to improve performance and review underperforming assets.

📈 An Opportunity for Coca-Cola
The partnership strengthens Coca-Cola’s presence in the US fast-food market, where it already supplies major chains such as McDonald’s and Wendy’s. The financial terms of the new KFC agreement have not been disclosed.

🤝 PepsiCo Retains Other Major Partnerships
Despite losing KFC’s US beverage business, PepsiCo will continue its partnerships with Taco Bell and KFC International restaurants. It also supplies beverages to Subway, Jersey Mike’s Subs, and Pizza Hut.

🔍 What This Means for the Beverage Industry
The switch highlights growing competition between Coca-Cola and PepsiCo for major restaurant partnerships. For PepsiCo, the decision adds pressure as it works to strengthen its North American business, while Coca-Cola gains a significant new distribution opportunity.

📌 Key Takeaway: KFC’s move marks a major change in the US fast-food beverage market, giving Coca-Cola a new restaurant partner and creating an additional challenge for PepsiCo.

Source: Reuters | October 16, 2026

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