KFC to Replace Pepsi With Coca‑Cola in U.S. Restaurants

Overview

• KFC, which announced the partnership Thursday, will begin switching its U.S. beverage supply to The Coca‑Cola Company in January 2027 with the chain aiming to have Coca‑Cola products in all U.S. restaurants by spring 2027.
• The move covers roughly 3,600–3,700 U.S. locations and ends a PepsiCo relationship that began after Pepsi bought KFC in 1986 while PepsiCo will continue supplying KFC in international markets.
• Bank of America analysts estimate the loss equals about $500 million a year in concentrate sales for PepsiCo and Reuters cited estimates that Coca‑Cola could see a mid-single‑digit percentage lift in North America revenue.
• Customers will see Pepsi‑branded drinks removed from U.S. KFC outlets and some Pepsi exclusives, such as Mountain Dew Sweet Lightning, are likely to disappear while KFC and Coca‑Cola say they will develop new drink offerings and food‑and‑drink pairings.
• The change follows a recent string of restaurant beverage switches and analysts warn the real risk to PepsiCo is reduced brand interaction with diners, a development that could make other long‑standing accounts contestable.