US KFC to Switch from Pepsi to Coca-Cola Starting January 2027
AM730 · 2 SOURCESabout 2 hours ago2 MIN
Summary
US KFC announced on Thursday (October 15, 2026) that it will fully switch its beverage supplier from PepsiCo to Coca-Cola starting January 2027, ending a partnership of nearly 40 years . The change will apply to all 3,718 KFC locations across the United States and forms part of the chain's US business revival plan . While US operations undergo this major transformation, mainland China KFC stores told local media they have not yet received any notice about supplier changes .
Key Points
- PepsiCo acquired KFC in 1986, making it Coca-Cola's second-largest beverage customer at the time
- KFC later spun off into Yum! Brands alongside Pizza Hut and Taco Bell, yet maintained its Pepsi commitment in the US
- PepsiCo stated that its agreements with Taco Bell and KFC international operations have been recently renewed
- Beijing Haidian and Xicheng district KFC staff confirmed to local media the stores still use Pepsi with no replacement notice received
- The switch represents a major blow to PepsiCo, losing beverage bottling rights to such a large fast-food chain
Why It Matters
The departure of KFC marks one of the most significant supplier losses for PepsiCo in the US fast-food sector, potentially affecting its market share and sales volume in the world's largest economy . This strategic pivot underscores shifting dynamics in the quick-service restaurant industry, where beverage partnerships serve as critical competitive differentiators . For Hong Kong consumers familiar with the long-standing "McDonald's with Coca-Cola, KFC with Pepsi" pairing, this change signals how even the most established market conventions can be reshaped by corporate strategy .
The departure of KFC marks one of the most significant supplier losses for PepsiCo in the US fast-food sector, potentially affecting its market share and sales volume in the world's largest economy . This strategic pivot underscores shifting dynamics in the quick-service restaurant industry, where beverage partnerships serve as critical competitive differentiators . For Hong Kong consumers familiar with the long-standing "McDonald's with Coca-Cola, KFC with Pepsi" pairing, this change signals how even the most established market conventions can be reshaped by corporate strategy .