KFC changes U.S. beverage supplier to Coca-Cola in 2027

Traders Union
All News
Business & Wealth
Companies
KFC changes U.S. beverage supplier

Highlights

KFC will switch its U.S. beverage supplier from PepsiCo to Coca-Cola in 2027, ending a partnership dating back to 1986.
The transition to Coca-Cola is part of KFC's 'Kentucky Fried Comeback' strategy, aiming to meet changing consumer preferences and regain market share from Chick-fil-A and Popeyes.
KFC expects all U.S. restaurants to serve Coca-Cola products by the end of Q1 2027, intensifying the competition between Coca-Cola and PepsiCo for major restaurant accounts.

KFC's supplier shift and rollout plan

As reported by CNBC, citing KFC, the company's U.S. restaurants will stop serving PepsiCo beverages and move to Coca-Cola products in 2027, marking the first such switch in decades for the Yum Brands chain.

Some international KFC markets already serve Coca-Cola products, but the brand's U.S. business has remained with PepsiCo since Pepsi acquired KFC in 1986. Even after Pepsi later spun off KFC along with Pizza Hut and Taco Bell into what became Yum Brands, the restaurant group kept Pepsi as its beverage partner.

In a memo to franchisees and employees obtained by CNBC, KFC U.S. President Catherine Tan-Gillespie said the move is part of the company's "Kentucky Fried Comeback." She said a new beverage lineup with Coca-Cola gives KFC more room to innovate, adapt to changing consumer tastes and create more reasons for customers to choose the chain.

Competitive pressure in U.S. quick service

The change comes as KFC tries to win back U.S. customers who have shifted to rivals such as Chick-fil-A and Popeyes. KFC expects Coca-Cola beverages to be available across all of its U.S. restaurants by the end of the first quarter of 2027.

Beverages are becoming a more important competitive tool across the fast-food industry, with chains including McDonald's and Taco Bell expanding drink menus with items such as refreshers and "dirty soda." Large restaurant chains do not often change beverage providers, but the category remains strategically important for both Coca-Cola and Pepsi because of its sales potential and brand visibility.

Tan-Gillespie also said Pepsi remains an important partner for Yum Brands and for KFC's international operations. The rivalry between Coke and Pepsi for major restaurant accounts remains active, and Pepsi won a notable U.S. account in 2024 when Subway changed from Coke to Pepsi.

In our earlier article on PepsiCo’s India energy drink labeling dispute, we covered how regulatory curbs on using the term “energy drink” could disrupt supplies of PepsiCo’s products within weeks. We also noted that the uneven competitive landscape—after one rival secured temporary relief—was becoming a key issue for the fast-growing category, with the next court hearing set for October 30.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.