One Of The Longest-Running Partnerships In Fast-Food Industry Comes To A Sudden End

KFC plans to ditch Pepsi in favor of Coca-Cola at thousands of restaurants across the United States, ending one of the longest-running partnerships in fast-food history.

The fried chicken giant confirmed Thursday that it will begin replacing Pepsi products with Coca-Cola beverages in January 2027, with the transition expected to reach all of its roughly 3,700 American locations by spring.

The seemingly sudden move brings an end to a relationship dating back to 1986, when PepsiCo acquired KFC as part of its expansion into the restaurant business.

Despite PepsiCo spinning off KFC in 1997, the beverage giant continued supplying drinks to the chain for nearly three decades under its parent company, Yum! Brands.

Catherine Tan-Gillespie, KFC’s president of U.S. operations, called the decision a major step in the company’s broader effort to revitalize its restaurants and attract customers amid pressure from activist investor Elliott Investment Management.

“This partnership is about more than what’s in the cup,” Tan-Gillespie said in a statement. “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.”

The shake-up represents a significant victory for Coca-Cola in its decades-long rivalry with PepsiCo, particularly as the latter struggles with sluggish beverage sales and mounting pressure to improve its North American business.

Coca-Cola executive Dagmar Boggs hailed the new partnership as a major milestone for the beverage giant.

“By pairing KFC’s iconic food and flavors with the breadth of Coca-Cola’s beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth possibilities together,” Boggs told Fox Business.