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KFC U.S. will replace PepsiCo beverages with Coca-Cola products beginning in January 2027, with the new drinks expected at all 3,718 U.S. restaurants by spring. The move ends a PepsiCo relationship that has lasted about four decades and gives Coca-Cola another large, highly visible restaurant distribution channel. KFC and the beverage companies have not disclosed the contract’s financial terms.
When will KFC stop serving Pepsi?
KFC’s October 15, 2026 announcement says the transition starts in January 2027. The rollout will take place across the U.S., and Coca-Cola products are expected to be available nationwide by spring 2027. Individual restaurants may change their fountain equipment, menus or packaged-drink selection at different points during that transition, so Pepsi availability could vary temporarily by location.
Until the rollout begins, KFC restaurants remain under their existing beverage arrangements. The announcement applies to KFC’s U.S. business; it does not establish a change for KFC restaurants in other countries.
Why is KFC switching from Pepsi to Coke?
KFC President Catherine Tan-Gillespie described the agreement as part of an effort to refresh the chain’s menu and beverage platform. She said, “I’m incredibly excited to bring KFC and Coca-Cola together. These are two originals, with deep consumer love.”
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The companies also presented the deal as more than a supplier swap. Coca-Cola North America Foodservice President Dagmar Boggs said the partners plan to pair KFC’s food and flavors with Coca-Cola’s broader beverage portfolio and innovation capabilities, creating new food-and-drink combinations and customer occasions. Neither company disclosed a specific menu of new beverages or a timetable beyond the 2027 rollout.
Reuters reported that the relationship being replaced dates back roughly four decades. PepsiCo acquired KFC in 1986, spun off its restaurant division in 1997, and continued supplying beverages through Yum Brands after the separation. The new agreement therefore changes a long-running commercial and branding relationship, not just the cola displayed at the counter.
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- Crisp, bubbly, and endlessly refreshing, this sparkling soda pop delivers classic cola flavor that's always just right
- Perfect for BBQs, pizza nights, or kicking back with friends, Coke is the fizzy drink that fits every occasion
- A carbonated caffeine drink to enjoy chilled for maximum refreshment
- 10 pack, 7.5 fl oz mini cans of Coca-Cola Original Taste soda, a soft drink crafted for celebrations, family dinners, and any moment you want to bring people together
Why the contract matters in the soda competition
Fountain contracts give beverage companies repeated exposure at mealtimes, access to high-volume distribution and opportunities to bundle drinks with food. KFC’s 3,718 U.S. locations make the change meaningful even though the contract’s value is unknown.
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Reuters characterized the loss as a potential setback for PepsiCo while noting the company is already under pressure to improve U.S. soda sales. Market strategist Jay Woods called losing a major brand partner “just a bad look for PepsiCo,” but there is no public evidence that quantifies the revenue KFC’s departure will remove from PepsiCo.
Coke versus Pepsi: what the public record shows
| Issue | Coca-Cola | PepsiCo |
|---|---|---|
| KFC timing | U.S. partnership begins January 2027; nationwide service expected by spring 2027. | Existing KFC relationship ends as the transition proceeds; no replacement KFC agreement was announced. |
| Restaurant reach | Company reports leadership across more than 500,000 U.S. foodservice locations and long-standing chain partnerships. | Expanded distribution through Subway’s more than 20,000 North American locations, according to PepsiCo’s second-quarter 2025 remarks. |
| Zero-sugar cola | No KFC-specific zero-sugar product was identified in the announcement. | PepsiCo reported Pepsi Zero Sugar sales growth of 30.8% year to date in 2025 and distribution to more than one million additional households. |
| Consumer taste evidence | No KFC-related taste test was disclosed. | PepsiCo said its 2025 Pepsi Challenge drew more than one million consumers in 34 markets and recorded Pepsi Zero Sugar preference above 60% across U.S. tour markets. |
| Financial terms | Not disclosed. | Terms of the departing KFC arrangement were not disclosed. |
All performance and preference figures in the PepsiCo column are company-reported results, not an independent market test. PepsiCo executive Gustavo Reyna said the 2025 challenge showed consumers viewed Pepsi Zero Sugar as the “boldest, smoothest, and best-tasting zero sugar cola.” PepsiCo’s prepared remarks also said its Pepsi trademark gained carbonated-soft-drink and cola market share and that Pepsi Zero Sugar delivered strong double-digit volume and net-revenue growth.
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What Pepsi is doing in response
PepsiCo’s documented response centers on Pepsi Zero Sugar, taste marketing and away-from-home distribution. Its 2025 Pepsi Challenge sampling tour reached 34 markets, while the company reported more than one million additional households carrying Pepsi Zero Sugar. The Subway expansion gives Pepsi a large restaurant channel even as KFC moves to Coca-Cola.
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What KFC customers should expect
- Before January 2027: Pepsi-branded fountain and packaged beverages can continue at participating U.S. KFC restaurants under the existing arrangement.
- From January 2027: KFC begins installing or activating the Coca-Cola beverage platform.
- By spring 2027: Coca-Cola products are expected throughout the U.S. KFC system, subject to local rollout timing.
- Product specifics: The announcement confirms Coca-Cola as the incoming supplier but does not list every soda, zero-sugar option, juice, water or regional package that each restaurant will carry.
Why restaurant chains change beverage contracts
A chain can switch suppliers to refresh its menu presentation, obtain a different portfolio of drinks, support new meal pairings, negotiate distribution and equipment terms, or align with a partner’s marketing and product-development capabilities. Beverage companies value the resulting fountain volume, visibility and repeated association with a major meal occasion. In KFC’s case, the companies publicly emphasized menu refresh, innovation and pairings, while leaving commercial terms private.
Coca-Cola says nine of the 13 brands in its 2026 campaign have been exclusive Coca-Cola partners for more than 30 years, representing more than 550 cumulative years of partnership. That company-reported history illustrates why chain contracts are strategic: they can persist for decades and shape what customers see and order every time they visit.
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