KFC is set to replace PepsiCo with Coca-Cola across its 3,600 restaurants in the United States, ending a nearly 40-year beverage supply relationship, while its operations across Africa will remain unaffected.
The agreement, announced on October 15, 2026, will see the transition begin in January 2027, with completion expected by spring.
KFC’s relationship with PepsiCo dates back to 1986, when the beverage giant acquired the fast-food chain. Although PepsiCo separated its restaurant businesses in 1997, KFC continued to serve Pepsi products across its US outlets.
KFC US President, Catherine Tan-Gillespie, said the move formed part of the company’s broader strategy to modernise its restaurants, strengthen customer engagement and improve the dining experience.
“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.
Tan-Gillespie added that the partnership went beyond beverages, describing it as another step towards making KFC more relevant to contemporary customers.
She said Coca-Cola shared the company’s ambitions for the future and expressed optimism about the opportunities the partnership would create.
KFC Follows Marriott in Ditching Pepsi
The announcement comes months after Marriott International ended its 34-year relationship with PepsiCo in July 2026, opting for a global agreement with Coca-Cola.
The Marriott deal reportedly covers nearly 10,000 hotels worldwide, including properties in Nigeria, South Africa and other African markets.
Under the arrangement, Coca-Cola products are being introduced across hotel guestrooms, restaurants, lounges and event spaces, extending the change across Marriott’s international operations.
Travel blog View from the Wing reported that Marriott cited consumer preferences in explaining the decision, telling its hotels that “The Coca-Cola portfolio is favored by more than 70% of Marriott’s guests.”
The two decisions represent significant changes in beverage supply arrangements involving major international hospitality and food-service brands.
KFC’s African Operations Remain Unaffected
Unlike Marriott’s global agreement, KFC’s latest supplier change applies exclusively to its US restaurants and will not affect its African operations.
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 company has set a target of expanding its African footprint to 3,000 outlets by 2035, building on its presence in markets such as South Africa, Nigeria, Kenya, Ghana and Uganda.
The geographical limitation of the latest agreement means PepsiCo’s beverage supply relationship with KFC outside the United States can continue, subject to existing local arrangements.
PepsiCo Faces Growing Business Pressures
The development comes as PepsiCo faces mounting business challenges, with the company acknowledging on October 8 that its recovery was taking longer than expected.
The company has also pursued additional cost-cutting measures aimed at improving profitability amid the pressure on its business.
However, the loss of KFC’s US business differs significantly in scope from Marriott’s decision. While Marriott’s switch covers its global hotel network, including properties across Africa, KFC’s change is restricted to the United States.
Consequently, PepsiCo will continue to have an opportunity to maintain its international relationship with KFC, even as Coca-Cola strengthens its position through new agreements with major global brands.
