KFC ends decades-long partnership with PepsiCo in the United States

Starting in January 2027, the fast-food chain KFC will replace Pepsi products with Coca-Cola across its United States restaurants. This decision marks the end of a 40-year partnership that began in 1986, when PepsiCo owned the chain. While some international markets already serve Coca-Cola, the U.S. locations had remained exclusive to PepsiCo until now. According to the president of KFC U.S., this transition is considered a strategic step toward revitalizing the brand and attracting customers who have shifted to competitors like Chick-fil-A or Popeyes.

The shift carries significant financial consequences for PepsiCo. Analysts at Bank of America estimate that the loss of the contract will result in an annual revenue decline of 500 million dollars for the beverage giant. This amount represents roughly 3% of the sales volume for the Pepsi Beverages North America division. Conversely, the move is expected to boost Coca-Cola’s North American sales by approximately 2.5%. This change comes at a challenging time for PepsiCo, which is currently navigating a period of decreased consumer demand and rising operational costs.