Coca-Cola has secured a major beverage partnership with KFC in the United States, ending the fast-food chain’s nearly 40-year relationship with PepsiCo.
Announced on October 15, 2026, the agreement will see Coca-Cola products replace Pepsi beverages across approximately 3,600 KFC restaurants in the US. The transition is scheduled to begin in January 2027, with Coca-Cola drinks expected to be available at all participating locations by spring 2027.
The partnership marks a significant change for KFC, which began serving Pepsi products after PepsiCo acquired the restaurant chain in 1986. Although PepsiCo separated KFC from its business in 1997, it continued supplying beverages to the fast-food brand through its parent company, Yum! Brands.
KFC said the new agreement is part of its broader strategy to refresh its menu, improve the customer experience and attract more diners. The partnership could also introduce new beverage options and food-and-drink combinations.
For Coca-Cola, the deal strengthens its position in the competitive US fast-food market, where beverage partnerships with major restaurant chains are an important part of its business.
However, the change is limited to KFC’s US operations. PepsiCo will continue supplying beverages to KFC restaurants in international markets, including those covered by its renewed agreements with Yum! Brands.
The financial terms of the new partnership have not been disclosed.
The announcement highlights the continuing competition between Coca-Cola and PepsiCo for major restaurant contracts. While the switch represents a notable business win for Coca-Cola, it does not mean that the company has universally outperformed Pepsi in taste or consumer preference.
For customers, the most visible change will be the drinks available with their KFC meals when the transition begins next year.
