KFC Replaces PepsiCo with Coca-Cola in Major Multi-Market Beverage Deal

Industry Pulse News Desk · 2026-10-16

KFC has ended a 37-year beverage partnership with PepsiCo to sign a multi-market distribution deal with The Coca-Cola Company.

KFC has reached a multi-market corporate agreement to transition its primary fountain beverage supply partnership to The Coca-Cola Company, concluding a 37-year commercial relationship with PepsiCo across participating territories.

Under the terms of the new long-term contract, Coca-Cola products will replace the traditional PepsiCo beverage portfolio across thousands of quick-service locations. Executives confirmed that the systemic rollout is scheduled to proceed in phased operational stages throughout the coming year.

The comprehensive deal extends well beyond standard soft drink distribution rights. The partnership incorporates joint promotional campaigns, integrated digital marketing through restaurant loyalty applications, and streamlined logistics arrangements designed to leverage Coca-Cola's global supply chain network.

The transition represents a notable shift in historic corporate ties. KFC's parent entity, Yum! Brands, was originally formed when PepsiCo spun off its fast-food restaurant division in 1997, establishing long-standing supplier relationships that remained in place across many global regions for decades.

Beverage contract realignments of this scale remain uncommon within the quick-service dining sector, where exclusive pouring rights serve as essential volume drivers for global beverage manufacturers looking to secure retail traffic.

Company representatives indicated that restaurant operators will begin updating point-of-sale systems and fountain equipment immediately to support the expanded beverage menu as individual franchise agreements transition.