KFC is ending its long-running relationship with PepsiCo in the United States, announcing plans to replace Pepsi soft drinks with Coca-Cola products at 3,700 restaurants.
The change is expected to begin in January. It marks a significant shift for two businesses whose relationship dates back 40 years, including a period when PepsiCo owned the fried chicken chain.
A partnership dating to PepsiCo’s ownership
PepsiCo acquired KFC decades ago before spinning the restaurant business off in 1997. Despite that separation, the companies continued working together on soft drink sales across KFC’s U.S. locations.
KFC’s decision now brings that arrangement to an end. Coca-Cola products will take the place of PepsiCo beverages at the chain’s American restaurants, making the supplier change visible to customers across its domestic network.
A symbolic setback for PepsiCo
The move comes as PepsiCo has faced several setbacks in recent years. Losing a long-time partner it once owned is particularly symbolic because of the history between the two companies.
The switch also highlights the continuing competition between PepsiCo and Coca-Cola for restaurant distribution. While the announcement concerns KFC’s U.S. operations, it represents a clear change in one of PepsiCo’s established food-service relationships.
What happens next
KFC’s transition to Coca-Cola products is scheduled to start in January. The source does not provide further details about the rollout or the terms of the new arrangement.