Business · Companies · 2 hrs ago
KFC to replace Pepsi drinks with Coca-Cola at 3,700 US restaurants
KFC will replace Pepsi drinks with Coca-Cola products at its 3,700 US restaurants starting in January.
The change ends a partnership dating back 40 years, when PepsiCo owned the fried chicken chain; PepsiCo spun KFC off in 1997.
Pepsi-Cola now trails Coke in US market share: it had 8.1% of the carbonated soft-drinks market by volume last year, compared with Coke’s 18.5%.
Pepsi also fell behind Dr Pepper to third place in 2024 and remains there.
Coke has invested in brand building and new drinks, while PepsiCo has spread its attention across a much larger food and beverage business.
The shift matters as PepsiCo’s North American beverage business is under pressure: its volume fell 2% last quarter, even as sales of some non-soda drinks improved.
PepsiCo says it will give soft drinks more focus; its CEO has said the company is not satisfied with its beverage business.
KFC will replace PepsiCo soft drinks with Coca-Cola products at its 3,700 U.S. restaurants in January.
The chain announced the change last week, according to Fortune.
The partnership between KFC and PepsiCo dates back 40 years, when PepsiCo bought the fast-food chain.
PepsiCo spun off KFC in 1997.
Pepsi-Cola had 8.1% of the U.S. carbonated soft drinks market by volume last year, compared with Coca-Cola’s 18.5%, according to Beverage Digest.
- Who
- KFC and PepsiCo. Coca-Cola products will replace PepsiCo’s namesake soft drinks.
- What
- KFC will switch the drinks served at its restaurants from PepsiCo products to Coca-Cola products.
- When
- The change is set to begin in January. KFC announced it last week, according to Fortune.
- Where
- KFC’s 3,700 U.S. restaurants.
- Why
- Not stated
This story does not have two clearly opposing sides.
PepsiCo spun off KFC.
KFC said it would replace PepsiCo soft drinks with Coca-Cola products at its U.S. restaurants.
KFC is set to begin replacing PepsiCo drinks with Coca-Cola products.
- Restaurants affected
- 3,700 U.S. locations
- New drink supplier
- Coca-Cola
- Change begins
- January
- PepsiCo spun off KFC
- 1997
- Pepsi-Cola U.S. market share
- 8.1% by volume last year
What people are saying
We do not feel good about the beverage business
So we are putting all the urgency of the business and focus on improving our performance in soft drinks