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KFC to Swap Pepsi for Coca-Cola Starting January 2027

By Drooid · Oct 18, 2026, 2:14 PM UTC · How we work

Summary

KFC Switches to Coke

U.S. KFC will replace Pepsi drinks with Coca-Cola products at its restaurants, starting January 2027.
The change will affect roughly 3,600 U.S. locations, about 3,718 per Reuters.
Bank of America analysts estimate PepsiCo could lose $500 million annually, about 3% of North American concentrate sales.
KFC US President Catherine Tan-Gillespie said the partnership will modernise restaurants and boost customer experience.

Summary

KFC Pushes Value

KFC hopes its new Coca-Cola partnership will anchor value meals for price-sensitive customers.
A National Restaurant Association survey found half of diners say covering expenses grew harder this year.
Forty percent of consumers reported using more restaurant discounts, up from 35% previously.
Diners are trimming add-on purchases, with fountain drinks becoming a primary target for cuts.

History

Historical Context

On April 23, 1985 Coca-Cola launched New Coke, a sweeter formula that earned only about 3 % market share and triggered over 40,000 angry calls, prompting a return to the original as “Coca-Cola Classic” after 77 days. The backlash illustrated how beverage partnerships affect pricing, a dynamic echoed by KFC’s 2027 switch from Pepsi to Coca-Cola, noted by Catherine Tan-Gillespie and Bank of America.

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KFC Switches to Coke

U.S. KFC will replace Pepsi drinks with Coca-Cola products at its restaurants, starting January 2027.
The change will affect roughly 3,600 U.S. locations, about 3,718 per Reuters.
Bank of America analysts estimate PepsiCo could lose $500 million annually, about 3% of North American concentrate sales.
KFC US President Catherine Tan-Gillespie said the partnership will modernise restaurants and boost customer experience.

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