The cola wars have a new casualty. KFC will start replacing Pepsi with Coca-Cola at its US restaurants in January 2027, ending a supplier relationship that has lasted almost four decades, Fox Business reports. The new drinks should be in all of its roughly 3,700 US locations by spring.
The tie goes back to 1986, when PepsiCo bought KFC. PepsiCo spun off its restaurants, including KFC, Pizza Hut and Taco Bell, in 1997 into the company now called Yum! Brands, but KFC kept pouring Pepsi.
Why KFC switched
KFC has faced growing competition from rival chicken chains in the US and launched its "Kentucky Fried Comeback" plan in 2025 to win customers back, The Daily Aus reports. "This partnership is about more than what's in the cup," said KFC president Catherine Tan-Gillespie. "It is another step in our work to evolve KFC, strengthen our restaurants, menu offerings and create a more relevant experience for today's customers."
Coca-Cola's Dagmar Boggs said the deal would let the two create new food-and-drink pairings. Neither side disclosed financial terms or what the switch will cost franchisees, who must change fountain equipment, syrup lines and menu boards, 1851 Franchise notes.
Pepsi keeps the rest
The change is limited to the US. PepsiCo told Reuters it has renewed its partnership with KFC International, without giving details, and it has also renewed its Taco Bell deal. That leaves two of Yum's biggest US chains with rival drink suppliers. Pepsi confirmed to The Daily Aus that KFC stores in Australia will keep serving its drinks.
