KFC will replace PepsiCo with Coca-Cola across its US restaurants from January 2027, ending a beverage partnership that dates back nearly four decades. Announced early October , the agreement covers the chain’s American operations, with the transition expected to reach all restaurants by spring 2027. Its African outlets will retain their existing PepsiCo supply arrangements.
The deal covers approximately 3,600 US restaurants under KFC’s new beverage partnership with Coca-Cola. Financial terms were not disclosed. For the two beverage companies, the contract reflects the commercial importance of supplying major restaurant chains, where beverage sales, equipment, distribution and marketing support can influence the economics of a wider food-service relationship.
A US Contract Changes Hands
PepsiCo acquired KFC in 1986 and continued supplying beverages after separating its restaurant businesses in 1997. KFC now operates under Yum! Brands, which also owns Taco Bell and Pizza Hut. The new arrangement ends PepsiCo’s longstanding beverage supply relationship with KFC in the United States, although its wider commercial ties with Yum! Brands remain in place.
Coca-Cola products will replace PepsiCo’s US beverage offering as the rollout progresses. KFC US president Catherine Tan-Gillespie said the partnership forms part of the chain’s effort to refresh its menu, strengthen its restaurants and give customers more reasons to visit. The change is also part of a broader turnaround effort as the restaurant business works to improve its competitive position.
Africa Keeps Its Arrangement
KFC’s international operations will not follow the American transition. PepsiCo and Yum! Brands have renewed their arrangements covering KFC restaurants outside the United States, preserving the beverage company’s access to international outlets even as it loses the US account. That distinction matters in African markets where KFC operates through established local businesses and distribution networks.
KFC’s African footprint includes major markets such as South Africa, Nigeria, Kenya, Ghana and Uganda. The US announcement does not establish any change to beverage supply in these countries. Customers and distributors should therefore not interpret the deal as a continent-wide switch to Coca-Cola.
Marriott Provides Another Example
The KFC decision follows Marriott International’s July 2026 move to replace PepsiCo with Coca-Cola across its global hotel network. Marriott’s agreement was broader geographically, covering its international hospitality operations, including properties in African markets. KFC’s latest decision, by contrast, is limited to the United States.
For Coca-Cola, the KFC contract adds another major food-service customer. For PepsiCo, retaining international KFC business provides continuity, but the US loss removes a longstanding account at a time when beverage companies are competing for large restaurant and hospitality contracts. The financial impact of the change will depend partly on the commercial terms, which have not been made public.
