KFC Abandons Pepsi For Coca-cola After Nearly 40 Years In The US

KFC is replacing PepsiCo with Coca-Cola across its 3,600 US restaurants, ending a nearly 40-year partnership, while its African operations remain unaffected.

Announced on October 15, 2026, the deal covers 3,600 restaurants, with the transition beginning in January 2027 and expected to conclude by spring.

KFC’s relationship with PepsiCo dates back to 1986, when the beverage company acquired the restaurant chain. Although PepsiCo separated its restaurant businesses in 1997, KFC retained Pepsi as its drinks supplier in the United States.

Catherine Tan-Gillespie, president of KFC US, described the switch as part of the company’s efforts to modernise its restaurants and strengthen customer engagement.

“I’m incredibly excited to bring KFC and Coca‑Cola together. These are two of the greatest originals, with deep consumer love and a shared belief that the best brands continue to evolve,” she said.

“This partnership is about more than what’s in the cup. It is another important step in our work to evolve KFC, strengthen our restaurants and create a more relevant experience for today’s customers. Coca‑Cola shares our ambition for the future of this brand, and I’m excited about what we can create together.”

SECOND MAJOR COMPANY TO ABANDON PEPSI

The announcement follows Marriott International’s July 2026 decision to end its 34-year relationship with PepsiCo in favour of a global Coca-Cola agreement.

As previously reported by Business Insider Africa, the deal covers nearly 10,000 hotels worldwide, including properties in Nigeria, South Africa and other African markets.

Under the arrangement, Marriott is introducing Coca-Cola products across guestrooms, restaurants, lounges and event spaces, extending the switch beyond the United States.

According to travel blog View from the Wing, Marriott justified the decision by citing customer preferences, telling its hotels that “The Coca-Cola portfolio is favored by more than 70% of Marriott’s guests.”

WHAT THE KFC DEAL MEANS FOR AFRICA

Unlike Marriott’s global agreement, KFC’s latest supplier change applies exclusively to the United States, leaving its extensive African operations unaffected.

According to KFC Africa’s inaugural impact report, the company operated 1,573 restaurants across 22 sub-Saharan African countries in 2025, employing more than 40,000 people.

The chain aims to expand to 3,000 outlets by 2035, building on its presence in markets including South Africa, Nigeria, Kenya, Ghana and Uganda.

PEPSICO FACES MOUNTING BUSINESS CHALLENGES

The challenges prompted the company to acknowledge on October 8 that its recovery was taking longer than expected, leading to further cost-cutting measures aimed at improving profitability.

Nevertheless, the two major customer losses differ in scope. While Marriott’s switch to Coca-Cola covers its global hotel network, including properties in Africa, KFC’s agreement is limited to the US, allowing PepsiCo to maintain its international supply relationship with the fast-food chain.