Beginning in January 2027, KFC U.S. will transition its U.S. restaurant beverage supplier from PepsiCo to The Coca-Cola Company, ending a partnership that began when Pepsi bought KFC in 1986.
The switch brings Coca-Cola products across all 3,600 KFC restaurants in the U.S. for the first time, marking an operational shift for the Yum Brands subsidiary. While several of the chain’s international markets already pour Coke products, American locations have remained loyal to PepsiCo fountain drinks ever since Pepsi bought KFC in 1986.
At the time of that 1980s acquisition, KFC stood as Coca-Cola’s second-largest fountain account, trailing only McDonald’s. Although Pepsi later spun off KFC alongside sister brands Pizza Hut and Taco Bell into Yum Brands, the fried chicken chain stayed with its former parent company. That loyalty is what allowed Taco Bell to maintain its hold on Mountain Dew Baja Blast over the decades.
JUST IN: KFC is switching from PepsiCo to Coca-Cola as its beverage supplier for US restaurants, its first change in decades, with the rollout expected to be complete by early 2027.
KFC Refreshes Beverage Lineup to Win Back Diners
Behind the scenes, corporate leadership frames the beverage overhaul as a vital mechanism to win back diners who have gravitated toward competitors like Chick-fil-A or Popeyes. Catherine Tan-Gillespie, President of KFC U.S., detailed the strategic shift in an internal memo obtained by news outlets.
This decision is a critical step in the Kentucky Fried Comeback.
Catherine Tan-Gillespie, President of KFC U.S.
Tan-Gillespie emphasized that refreshing the beverage lineup provides a platform to innovate and adapt to changing tastes.
“This exciting new partnership brings Coca-Cola and KFC together across the U.S. for the first time,” said Dagmar Boggs, President of Foodservice & On-Premise, North America, The Coca-Cola Company. “By pairing KFC’s iconic food and flavors with the breadth of Coca-Cola’s beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth possibilities together.”
Dagmar Boggs, President of Foodservice & On-Premise, North America, The Coca-Cola Company
Timeline and Operational Rollout Across U.S. Restaurants
Beginning in January 2027, individual franchise locations will begin swapping out fountain equipment and syrup lines. Corporate projections anticipate that Coca-Cola products will be served in all U.S. restaurants by spring 2027.
Despite losing the KFC account, PepsiCo remains an important partner for Yum Brands and continues to supply international markets where local agreements dictate otherwise. Competition among American fast-food chains has intensified as brands expand their beverage menus to win more customers.
$YUM's KFC U.S. just dumped $PEP for $KOKFC announced a new U.S. beverage partnership with The Coca-Cola Company, ending Pepsi's long run as the fountain supplier at thousands of restaurants, per a KFC U.S. release and earlier WSJ reportingThe switch starts in January 2027,… pic.twitter.com/5dGmtKljEO
Beverages have evolved into a critical way to attract consumers for quick-service restaurants experimenting with refreshers, specialty coffees, and mixed sodas. KFC recently showcased its own beverage ambitions at Open House, an innovation restaurant in Texas, featuring test menus with iced coffees and shakes.
Shifting Supplier Alliances in the Fast-Food Industry
Beverage giants Coca-Cola and PepsiCo constantly tussle over major restaurant chains, which serve as sales opportunities and a chance to grow the visibility of their beverage brands. While supplier switches remain uncommon, the fast-food sector has witnessed several high-profile realignments recently.
In 2024, Pepsi successfully poached Subway—the largest U.S. restaurant chain measured by number of locations—away from Coca-Cola. Meanwhile, Coca-Cola has captured notable former Pepsi accounts, including Arby’s, Culver’s, and Panda Express, before securing the KFC agreement.
KFC Corporation is based in Plano, Texas.
KFC has been serving Original Recipe® fried chicken since 1952, including chicken on the bone, nuggets and tenders.
