How KFC Went From Pepsi's Restaurant Arm to a Coca-Cola Customer

KFC is dropping Pepsi and bringing in Coca-Cola as the beverage supplier for its U.S. restaurants, ending a partnership of nearly 40 years. According to a joint statement from KFC and Coca-Cola, reported by MyNorthwest, Coke will begin appearing in January 2027 and should be available at all U.S. locations by spring.

For customers, the main change is what comes out of the fountain. For the soft drink industry, it is a notable loss for PepsiCo: The Wall Street Journal said KFC was one of the biggest Pepsi sellers among U.S. restaurants.

How the KFC and Pepsi relationship developed

• 1986: PepsiCo acquires KFC, which starts the link between the chicken chain and Pepsi drinks, MyNorthwest and The Daily Aus both reported.
• 1997: PepsiCo separates its restaurants, including KFC, Pizza Hut and Taco Bell, into a standalone company now called Yum! Brands, according to The Daily Aus. The move let PepsiCo focus on drinks and snacks. KFC kept serving Pepsi products.
• 2025: KFC launches its “Kentucky Fried Comeback” strategy to win back customers and regain market share, The Daily Aus reported. The chain has faced growing competition from rival chicken restaurants in the U.S.
• October 2026: KFC and Coca-Cola announce the new partnership. The Daily Aus reported that KFC U.S. President Catherine Tan-Gillespie described it as part of broader efforts to update restaurants and the menu and better meet customer expectations.
• January 2027: Coke is scheduled to start being served in KFC restaurants, with all U.S. locations expected to carry it by spring.

What KFC and the companies have said

Tan-Gillespie said, “Coca-Cola shares our ambition for the future of this brand.” She added that she is excited about what the two companies can create together, according to The Daily Aus.

PepsiCo told Reuters that it had renewed its partnership with KFC International, but it did not give details of that deal. The Daily Aus reported that Pepsi also confirmed to it that KFC stores in Australia will continue to serve the brand. The change announced for 2027 applies to U.S. restaurants for now.

Why it matters for customers and the drinks market

The Wall Street Journal reported that KFC currently serves Pepsi, Mountain Dew, Starry and Aquafina, along with its own lemonade and iced tea. It is not yet clear which Coca-Cola beverages will replace them. USA Today reported that KFC said it could add more beverage options and new food-and-drink combinations.

Reports differ on the size of the affected network. Reuters, as cited by MyNorthwest, said KFC has 3,718 U.S. locations. The Daily Aus put the figure at 3,600 U.S. restaurants. Either way, the switch covers thousands of restaurants.

The Wall Street Journal said PepsiCo has been losing ground in the soft drink market, with Pepsi facing competition from Coca-Cola and rivals such as Dr Pepper. It also noted that other major customers have moved in both directions. Marriott and Costco switched from Pepsi to Coke, while Subway switched from Coke to Pepsi.

What happens next

The rollout is set to begin in January 2027 and reach all U.S. KFC locations by spring. KFC has not yet said which specific Coca-Cola drinks will be offered or what new combinations it may introduce.

Sources: MyNorthwest.com, The Daily Aus