KFC's own explanation is about sales, not soda. The chain is trying to win back U.S. diners who have gone to rivals such as Chick-fil-A and Popeyes. In an internal memo to franchisees, KFC U.S. President Catherine Tan-Gillespie called the switch "a critical step in the Kentucky Fried Comeback," saying a new beverage partner gives the chain "a platform to innovate."
The business logic behind that:
- Drinks drive traffic: Fast-food chains now treat beverages as a way to bring people in. The National Restaurant Association says drinks can drive traffic and build loyalty, and McDonald's and Taco Bell have added refreshers and "dirty soda."
- A new pairing story: KFC's announcement, "Two Secret Recipes, One Iconic Partnership," ties its chicken recipe to Coca-Cola's formula, a marketing hook it used before with Mountain Dew Sweet Lightning in 2019.
- Coke's old account: When PepsiCo bought KFC in 1986, KFC was Coke's second-largest fountain account, behind only McDonald's. Pepsi kept the U.S. pouring rights even after spinning KFC off in 1997.
The financial terms haven't been disclosed. Moneywise cites one estimate of a possible $50 million hit to Coca-Cola's earnings, which I can't verify. Pepsi still supplies many of KFC's international locations. The U.S. switch starts in January 2027 and should reach all restaurants by spring.
🕒 As of October 2026
