PEP · News · 20261016N

Customer Dynamics

PEPSICO INC · 2026-10-16 · Importance 40 · Surprise 42 · In source text

Yum! Brands’ KFC will replace PepsiCo with Coca-Cola as the exclusive beverage provider at approximately 3,600–3,700 U.S. restaurants beginning in January 2027, with rollout expected by spring. The change ends a nearly 40-year PepsiCo partnership and removes a major U.S. foodservice account. PepsiCo will reportedly continue supplying KFC internationally and retains beverage agreements with Yum! Brands’ Taco Bell. The loss follows Coca-Cola’s reported win of Marriott’s beverage business from PepsiCo in April, increasing competitive pressure in foodservice distribution.

Key facts

• KFC has announced a new partnership with Coca-Cola to be its exclusive soda supplier in U.S. stores, starting in January 2027, ending KFC's long-standing relationship of approximately four decades with PepsiCo. source
• KFC will begin serving Coca-Cola products across all its U.S. restaurants by spring, ending its 37-year partnership with PepsiCo in the U.S. source
• KFC will begin serving Coca-Cola products at its approximately 3,700 U.S. restaurants starting in January 2027, meaning PepsiCo will lose the KFC U.S. business at about 3,700 locations. source
• Coca-Cola is set to replace Pepsi as the exclusive beverage provider at KFC's 3,600 U.S. restaurants, ending a partnership that lasted 40 years, with the transition beginning in January 2027 and a full rollout expected by spring. source
• PepsiCo will reportedly still supply KFC internationally and retains beverage agreements with Taco Bell and KFC International. source
• PepsiCo director Robert C. Pohlad purchased 184,646 common shares of PEP on October 14, 2026 at a price of $128.28 per share. source
• The Feed the Children Food & Essentials Hub program, with support from PepsiCo and the PepsiCo Foundation, has provided over 2 million meals served this year. source
• In April, Coca-Cola won the Marriott business from PepsiCo. source

Impact estimates