KFC to Switch from Pepsi to Coca-Cola in U.S. After 40 Years
Translated & summarized from Ice by baba
KFC is ending its 40-year beverage partnership with PepsiCo in the U.S. and will switch to serving Coca-Cola products starting next year, with full implementation by early 2027. This strategic move aims to attract customers back to KFC from competitors like Popeyes and Chick-fil-A. KFC locations in Israel will not be affected, as they already serve Coca-Cola. The change is part of a larger competitive landscape between beverage giants and KFC's broader recovery strategy.
The story in 6 lines · by baba
- KFC will switch from Pepsi to Coca-Cola in its U.S. restaurants starting next year.
- The partnership with PepsiCo has lasted for approximately 40 years.
- The transition is expected to be completed across the U.S. by the end of Q1 2027.
- The move aims to attract customers back to KFC from competitors like Popeyes and Chick-fil-A.
- KFC locations in Israel will not be affected by the change.
- The shift is part of ongoing competition between beverage giants and KFC's recovery efforts.
After a partnership spanning approximately four decades, KFC is set to end its beverage supply agreement with PepsiCo in its American restaurants and transition to serving Coca-Cola products. The shift is expected to begin next year and be fully implemented across the United States by the end of the first quarter of 2027, according to a report by CNBC.
The long-standing relationship between KFC and PepsiCo commenced in 1986 when PepsiCo acquired the fried chicken chain. Even after KFC was later spun off under the Yum! Brands umbrella, which also includes Pizza Hut and Taco Bell, the partnership with Pepsi persisted. This move to Coca-Cola aims to help KFC regain local customers who have increasingly opted for competitors like Popeyes and Chick-fil-A in recent years.
KFC U.S. President Kathleen Cook described the change as a crucial step to align the brand with evolving consumer tastes and introduce menu innovations. The beverage sector has become a significant draw in the fast-food industry, with many chains expanding their offerings to include fruit drinks, specialty additions, and coffee-based beverages and milkshakes, areas KFC has been exploring at its innovation lab in Texas.
For beverage companies, these contracts provide substantial exposure and sales volume. In Israel, KFC locations will not see any changes as they already serve Coca-Cola products. The local franchisee, upon KFC's return to Israel in 2020, chose to partner with The Central Bottling Company, the Israeli licensee for Coca-Cola, ensuring a consistent menu of drinks like Coca-Cola, Coke Zero, Sprite, and Fuse Tea.
Such significant supplier changes are not routine but are part of an ongoing competition between the major beverage giants. In 2024, Subway switched from Coca-Cola to PepsiCo, while Coca-Cola has previously attracted chains like Arby's. KFC emphasized that despite the U.S. separation, PepsiCo remains an important business partner for its parent company, Yum! Brands. The article also notes KFC's recent strategic plan for a comeback in the fast-food market following significant financial challenges, including store closures and cash flow difficulties.