KFC switches US beverage supplier from PepsiCo to Coca-Cola

· Finance · United States

KFC is switching to Coca-Cola as its beverage supplier for U.S. restaurants for the first time in decades, ending a long-standing tie-up with PepsiCo. The change is a setback for Pepsi, which analysts say is already losing ground in the soda wars as more consumers move to Coke. KFC operates a large U.S. restaurant estate, so the contract shifts a visible slice of fountain-drink volume between the two cola rivals and gives Coca-Cola another foodservice win in a market where share gains are hard to come by.

Why it matters：Foodservice contracts are a key battleground for beverage share, and this switch signals Pepsi's weakening position in the U.S. market.

Key points

  • The switch covers KFC's U.S. restaurants.
  • It is the first such change in decades.
  • Analysts are increasingly worried about Pepsi's soda position.

Sources (original reporting)

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