KFC Switches To Coca-Cola, Ending Decades-Long Pepsico Partnership

(MENAFN- Bangladesh Monitor) Dhaka: KFC has selected Coca-Cola as its beverage supplier for restaurants across the United States, ending a partnership with PepsiCo that lasted around 40 years.

The agreement, announced on October 15, will bring Coca-Cola products to KFC's 3,718 US locations by spring 2027. The companies did not disclose the financial terms of the deal.

The move comes at a challenging time for PepsiCo, which is seeking to revive soda sales in the US while addressing pressure on its snack business from higher prices and changing consumer preferences.

PepsiCo CEO Ramon Laguarta recently acknowledged that efforts to improve growth and profit margins were taking longer than expected. The company is also facing pressure from activist investor Elliott Investment Management, which has called for the sale of underperforming assets and better performance in North America.

KFC's relationship with PepsiCo began when the beverage company acquired the fast-food chain to expand its presence in food and snacks. Although KFC was spun off in 1997, PepsiCo remained its beverage partner under parent company Yum Brands.

Despite losing the US KFC business, PepsiCo will retain agreements covering Taco Bell and KFC restaurants internationally. It also supplies beverages to Subway and Jersey Mike's Subs.

Coca-Cola already partners with major restaurant chains, including McDonald's and Wendy's, strengthening its position in the US foodservice market.

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