Coca-Cola Deals Pepsi a Stinging Blow, Snatches KFC After Nearly 40 Years
Key takeaways
- Coca‑Cola wins a major U.S. fast‑food partner, while PepsiCo loses a key customer as KFC shifts to Coke beverages in 2027.
- 3,600 U.S. KFC restaurants
- January 2027 start
- Coca‑Cola shares $92.74
What happened
Yum! Brands’ KFC chain announced that Coca‑Cola will replace PepsiCo as its U.S. beverage supplier, ending a nearly 40‑year partnership. The switch will start in January 2027, with Coca‑Cola products in all 3,600 U.S. KFC restaurants by spring, while international KFC sites will keep PepsiCo drinks. The deal is a win for Coca‑Cola and a setback for PepsiCo, which is already trimming its North American soft‑drink business.
Why it matters
The change gives Coca‑Cola a larger footprint in the quick‑service restaurant sector, adding KFC to its roster that already includes McDonald’s, Wendy’s, Culver’s, Arby’s and Panda Express. For KFC, the partnership supports its “Kentucky Fried Comeback” strategy to regain market share from rivals like Chick‑fil‑A and…
Short-term and longer-term
Short-term. In the next few weeks, watch for any pricing or promotional moves from KFC as it rolls out Coca‑Cola drinks.
Longer-term. Over the next 12–18 months, the partnership could strengthen Coca‑Cola’s quick‑service restaurant pipeline and help KFC regain market share.