KFC Dumps Pepsi for Coca-Cola at 3,700 US Restaurants, Ending Nearly 40-Year Soda Partnership in 2027

LOUISVILLE, Ky. — KFC will start pouring Coca-Cola instead of Pepsi at its U.S. restaurants next year. The move ends one of the longest-running beverage partnerships in American fast food.

The fried chicken chain announced last Thursday that it will begin moving to Coca-Cola products in January 2027. It expects the new drinks to be available at all of its roughly 3,700 U.S. locations by spring.

The switch ends a nearly 40-year relationship that began when PepsiCo bought KFC in 1986. That relationship survived even after PepsiCo spun off its restaurant business more than a decade later.

'More than what's in the cup'

KFC U.S. President Catherine Tan-Gillespie described the deal as part of a broader effort to modernize the brand and give customers more reasons to visit.

"I'm incredibly excited to bring KFC and Coca-Cola together," Tan-Gillespie said in a statement. "These are two originals, with deep consumer love."

"This partnership is about more than what's in the cup," she continued. "It is 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, and I'm excited about what we can create together."

Coca-Cola also welcomed the agreement. Dagmar Boggs, the company's North America president of foodservice and on-premise, said in a statement that the deal "brings Coca-Cola and KFC together across the U.S. for the first time."

"By pairing KFC's iconic food and flavors with the breadth of Coca-Cola's beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing, create memorable consumer experiences and unlock new growth possibilities together," Boggs said.

Mountain Dew Sweet Lightning on the way out

For customers, the most visible change will be at the soda fountain. Once the switch is complete, Pepsi products will no longer be sold at U.S. KFC restaurants.

That includes Mountain Dew Sweet Lightning, a peach- and honey-flavored soda made exclusively for KFC. The drink built a loyal following and had become closely tied to the chain's menu.

KFC has not released its full Coca-Cola beverage lineup, so it is not yet clear which drinks will replace its current Pepsi offerings. The company said the partnership could lead to new food-and-drink pairings and more beverage options as it expands its menu.

A history that began in 1986

PepsiCo bought KFC in 1986 and made Pepsi the chain's exclusive U.S. beverage partner. PepsiCo later added Pizza Hut and Taco Bell to its restaurant holdings.

In 1997, PepsiCo spun off those chains into a separate company, Tricon Global Restaurants, which was renamed Yum! Brands in 2002. Even as an independent company, KFC kept Pepsi drinks in its U.S. restaurants for nearly three more decades.

The relationship is not ending everywhere. PepsiCo will remain KFC's beverage partner in international markets. According to Reuters, PepsiCo recently renewed agreements covering Taco Bell and KFC's restaurants outside the United States.

Part of KFC's comeback push

The beverage deal is the latest move in a turnaround effort at KFC's U.S. business, which launched last year shortly after Tan-Gillespie took over.

Tan-Gillespie has described the brand as "loved but latent," meaning customers still have warm feelings toward it but the chain needed new energy to compete. KFC has faced intense competition in the chicken category, where rivals have expanded quickly and invested heavily in new menu items.

In announcing the switch, KFC called the deal "another step in the brand's ongoing effort to refresh its menu and beverage platform and create more reasons for customers to visit."

KFC is also testing a wider drink menu. At Open House, its innovation restaurant in Texas, the chain has introduced a beverage lineup featuring iced coffee, boba and shakes. Drinks have become an important source of traffic and profit across the restaurant industry, as chains compete for afternoon visits with specialty sodas, lemonades and coffee drinks.

A win for Coke in the fountain wars

The deal is a notable gain for Atlanta-based Coca-Cola in the long-running battle over restaurant fountain contracts. These agreements give soft drink makers years of guaranteed sales and prominent placement in front of millions of customers.

Coca-Cola already supplies many of the country's largest restaurant chains, including McDonald's, Burger King, Wendy's and Chick-fil-A. Adding KFC's U.S. system strengthens its position in fast food, one of the most valuable channels for soft drink sales.

For PepsiCo, losing KFC's U.S. business comes at a difficult time. The company has faced pressure from investors over slowing growth in its North American food and beverage operations, and activist investor Elliott Management disclosed a stake of about $4 billion in PepsiCo last year. PepsiCo still holds beverage partnerships with several major restaurant chains, including Taco Bell.

The transition is scheduled to begin in January 2027. Restaurants will convert their fountain systems and drink menus over the following months, and KFC expects Coca-Cola products to be available at every U.S. location by spring.

Until then, Pepsi products, including Mountain Dew Sweet Lightning, will remain on the menu at KFC restaurants nationwide.

The change means that for the first time since the Reagan administration, Coke rather than Pepsi will be served alongside buckets of KFC chicken in the U.S.