NRT briefing
KFC makes finger lickin’ good deal with Coca-Cola — but leaves Pepsi in deep-fried trouble
Based on reporting by New York Post.
The Brief
KFC has signed Coca-Cola as its new beverage partner for its US restaurants, ending a roughly four-decade relationship with PepsiCo. The fast-food chain made the announcement on Thursday. Coca-Cola products will be available at KFC US locations by spring 2027, according to KFC. Financial terms of the partnership were not disclosed.
The partnership's end is a setback for PepsiCo, which is working to improve sales in the US. PepsiCo originally acquired KFC in the 1980s and continued as its beverage partner even after spinning off the chain in 1997. PepsiCo is in the midst of a turnaround of its North America business, and CEO Ramon Laguarta said earlier this month that growth and margin recovery was taking longer than planned.
PepsiCo and Yum Brands, KFC's parent, recently renewed beverage agreements for Taco Bell and KFC International stores, including a 10-year agreement for Taco Bell, a PepsiCo spokesperson told Reuters. The Wall Street Journal first reported the news.