KFC announced that its U.S. restaurants will switch beverage suppliers from PepsiCo to Coca-Cola, a change that will take effect in January 2027. According to the report, this marks the first time in decades that the Yum Brands chain has altered its drink supplier. KFC has served Pepsi since PepsiCo acquired the chain in 1986.
The transition is expected to be completed by the end of the first quarter of 2027, adding approximately 3,700 U.S. locations to Coca-Cola’s foodservice footprint. Coca-Cola’s president of Foodservice & On-Premise, North America, Dagmar Boggs, described the partnership as an exciting new collaboration.
KFC U.S. President Catherine Tan-Gillespie stated that PepsiCo remains an important partner for Yum Brands and for KFC’s international markets. The company is attempting to win back U.S. diners who have left for competitors such as Chick-fil-A and Popeyes, framing the switch as part of its "Kentucky Fried Comeback" initiative.
Historically, KFC was Coca-Cola’s second-largest fountain account, behind only McDonald’s. Coca-Cola has secured several other restaurant wins from Pepsi in recent years, including Culver’s, Arby’s, and Panda Express, while Pepsi took Subway from Coca-Cola in 2024.
At the time of publication, Coca-Cola shares were trading at $92.76, up 0.83% on the day.
