In a major shift within the fast-food industry, KFC has announced that its U.S. restaurants will transition from PepsiCo to Coca-Cola beverages starting next year. The move marks the first time in nearly 40 years that the fried chicken giant has altered its domestic drink supplier, ending a partnership rooted in historical corporate ties.
A Historic Shift in the Beverage Wars
KFC’s tie-up with Pepsi dates back to 1986, when PepsiCo acquired the fried chicken chain. Prior to that buyout, KFC was Coca-Cola’s second-largest fountain client, behind only McDonald’s.
Even after PepsiCo spun off KFC alongside Taco Bell and Pizza Hut into what is now Yum! Brands, the chains remained loyal to PepsiCo. While some international KFC markets have served Coca-Cola products over the years, the U.S. menu has consistently featured Pepsi beverages until now.
“This decision is a critical step in the Kentucky Fried Comeback. A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us.”
— Catherine Tan-Gillespie, KFC U.S. President
Why the Change Now?
- Reclaiming Market Share: KFC has faced intense competition in the U.S. from fast-growing chicken rivals like Chick-fil-A and Popeyes.
- Beverage Innovation: Drinks have become a key growth driver in the quick-service restaurant (QSR) sector, with competitors expanding into refreshers, specialty shakes, and custom sodas.
- Custom Drink Concepts: KFC has recently been experimenting with new beverage options, including iced coffees and shakes, at its Open House innovation lab in McKinney, Texas. Partnering with Coca-Cola allows KFC to tap into Coke’s expertise in developing exclusive, trendy drink offerings.
Key Details & Timeline
- Rollout Schedule: KFC plans to have Coca-Cola beverages available in all U.S. locations by the end of Q1 2027.
- Global Impact: PepsiCo will remain a key partner for Yum! Brands across various international markets and other restaurant concepts.
- Industry Trend: While supplier switches are rare among top fast-food chains, this follows Pepsi stealing Subway from Coca-Cola in 2024, as well as Coke recently winning over chains like Culver’s, Arby’s, and Panda Express.
