Dive Brief:
- KFC U.S. will replace Pepsi beverages with Coca-Cola products across its restaurant system by spring 2027, according to a Thursday announcement.
- The shift is a major win for Coca-Cola, which has sought to associate its products with a wide range of QSR brands in its recent marketing pushes.
- The transition comes as KFC overhauls its menu, the brand’s U.S. president, Catherine Tan-Gillespie, said in the press release. Owner Yum Brands is also placing greater emphasis on increasing beverage sales across its restaurant chains.
Dive Insight:
The break with Pepsi is one of the most substantial public-facing menu shifts in KFC's turnaround, and is an historically significant shift for the brand, which was once owned by the beverage giant.
Gillespie said the deal with Coca-Cola marked “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 shares our ambition for the future of this brand.”
The fried chicken chain has spent the last few years trying to recover sales momentum and eventually growth in its home market, often using tactics developed at Taco Bell like buzzy LTOs, a greater focus on sauces, and spin-offs meant to test new products.
In addition to Pepsi, KFC had purchasing agreements with Dr Pepper/Seven Up and Tetley’s Tea, per its 2026 franchise disclosure document. KFC did not immediately respond to a request to clarify whether Dr Pepper would be impacted by the shift in beverage partnerships.
While new beverages and LTOs come and go several times a year across most QSR brands, soft drink lineups tend to be fairly steady. Contract changes of this magnitude are comparatively rare and often coincide with broader changes in brand identity.
In 2024, for example, Subway switched from Coke to Pepsi, in the middle of a series of menu updates that saw the chain add new sandwiches in several waves and a wider range of snacks and desserts, including the footlong cookie.
KFC, likewise, is looking to add “new drink offerings, [and] expanded daypart occasions,” according to the press release. The brand recently opened a test store to explore operational and menu options for its turnaround, ranging from table service to iced lattes.
