GoKawiilKFC Switches U.S. Fountain Drinks to Coca-Cola, Ending 40-Year PepsiCo Run
KFC has signed a new beverage partnership with Coca-Cola that will replace PepsiCo in its U.S. restaurants starting January 2027, with full rollout expected by spring 2027. The switch ends a roughly 40-year relationship that began when PepsiCo owned KFC in 1986 and continued even after Yum Brands spun off from Pepsi in 1997. PepsiCo still retains deals covering Taco Bell and KFC's international locations, including a new 10-year Taco Bell agreement.
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The move signals that Yum Brands' chains can now negotiate beverage deals independently rather than as a package tied to PepsiCo's historic ownership stake, suggesting beverage partnerships are increasingly treated as separate commercial decisions per brand. KFC's simultaneous push into iced coffee, boba and shakes at its new Texas concept restaurant indicates the chain may be positioning drinks as a bigger part of its menu strategy, not just a side offering. PepsiCo's retained ties to Taco Bell and KFC international show the companies' broader relationship remains intact despite the U.S. KFC shift.
- KFC U.S. will switch fountain drinks from Pepsi to Coca-Cola starting January 2027, fully rolled out by spring 2027.
- The change ends roughly 40 years of PepsiCo pouring rights at KFC, dating back to Pepsi's 1986 ownership of the chain.
- PepsiCo keeps its partnerships with Taco Bell (a new 10-year deal) and KFC's international restaurants.
Source: entrepreneur.com — Jonathan Small, 2026-10-19
Published there as: “KFC Is Making a Big Switch After 40 Years”
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