KFC Ends 40-Year Pepsi Partnership, Switches to Coca-Cola
KFC in the United States is transitioning from PepsiCo beverages to Coca-Cola across 3,718 restaurants starting next January, ending a 40-year partnership in the US market.
The KFC chain in the United States has decided to end its 40-year partnership with PepsiCo and switch to Coca-Cola across 3,718 restaurants, according to QSR Magazine.
The transition will begin next January, while PepsiCo will retain beverage supply rights for KFC locations outside the United States and for the Taco Bell brand.
The report linked the decision to fast-food chains reviewing their beverage menus to attract younger customers, as well as KFC's efforts to revitalize its brand amid declining sales and branch closures.
This move comes after four decades of cooperation between KFC and PepsiCo in the US market, and the change is limited to US branches, according to the report.
What do these terms mean?
Exclusive Supply Contract: An agreement in which a restaurant chain commits to purchasing its beverages from a single company for a specified period.
Beverage Menu: The set of options offered by a restaurant chain that influences customer decisions and operating costs.
Brand Revitalization: Efforts aimed at restoring sales growth and brand appeal among customers following a decline.
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