KFC picks Coca-Cola as US soda supplier, ditches longtime partner PepsiCo

Oct 15 — Fast-food chain KFC on Thursday signed Coca-Cola as ​its beverage partner for US stores, bringing to a close a relationship with PepsiCo that ‌dates back about four decades.

The partnership began when PepsiCo acquired KFC ⁠in a bid to ​expand into food and ⁠snacks. While PepsiCo later spun off KFC ‌in 1997, it ‌continued to be a beverage partner for its ⁠parent Yum Brands.

The loss ⁠of the beverage partnership with KFC, which has 3,718 US locations, could be a setback for PepsiCo as it works to improve sales in the country.

PepsiCo is in the midst of ‌a turnaround in its North America ​business, and higher costs and weak demand for its snacks have added to concerns for CEO Ramon Laguarta, who said earlier this month that growth and margin recovery was taking longer than planned.

PepsiCo and Yum Brands just renewed agreements ​across Taco Bell and KFC International stores, a ‌spokesperson for PepsiCo ‌told ⁠Reuters. Taco Bell is a 10-year agreement, they said.

Coca-Cola products will be available at KFC US restaurants by spring 2027, the company said. Financial details ‌of the partnership were ​not disclosed.

The Wall Street ‌Journal first reported the ⁠news ​on Thursday.

(Reporting by Juveria Tabassum in Bengaluru; Editing by ​Shilpi Majumdar)

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