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

By Adrian Cole

KFC U.S. will transition its beverage supplier from PepsiCo to The Coca-Cola Company starting January 2027, with a full rollout expected by spring 2027. This change will affect approximately 3,718 KFC locations across the United States.

The move concludes a 40-year exclusive beverage arrangement that began when PepsiCo acquired KFC in 1986. Although PepsiCo spun off its restaurant holdings as Yum! Brands in 1997, the beverage partnership remained until now.

Catherine Tan-Gillespie, President of KFC U.S., stated that the new partnership with Coca-Cola aligns with KFC's future ambitions. Dagmar Boggs, Coca-Cola President of Foodservice & On-Premise North America, highlighted the opportunity to pair KFC's iconic food with Coca-Cola's extensive beverage portfolio.

Analysts view the loss of KFC as a setback for PepsiCo, which faces increased competition from Coca-Cola. This shift is part of a broader trend, with other major brands like Costco and Marriott also moving from PepsiCo to Coca-Cola, indicating a growing competitive edge for Coca-Cola in the food-service sector.