KFC picks Coca-Cola as US soda supplier, ditches longtime partner PepsiCo

Oct 15 (Reuters) - Fast-food ‌chain KFC ​on ​Thursday signed Coca-Cola as its beverage partner for US stores, bringing to a ‌close a relationship with PepsiCo that dates back ⁠about four decades.

The partnership began when PepsiCo acquired KFC ‌in a bid to expand ‌into food and snacks. While PepsiCo later spun off KFC in 1997, it continued to ​be a beverage partner for its parent Yum Brands.

The loss of the beverage partnership with ⁠KFC, which has 3,718 US locations, could be a setback for ​PepsiCo as it works to improve sales in the country.

PepsiCo is in the midst ​of a turnaround in its ‌North America business, and higher costs and weak demand for its snacks have ⁠added to concerns for CEO Ramon Laguarta, who said earlier this month that growth and margin recovery was ⁠taking longer than planned.

PepsiCo and Yum Brands just renewed ​agreements across Taco Bell and KFC International stores, a spokesperson for PepsiCo told Reuters. Taco Bell is a 10-year agreement, ‌they said.

Coca-Cola products will be available at KFC US restaurants by spring ‌2027, the company said. Financial details of the ⁠partnership were not disclosed.

The ‌Wall Street Journal ​first reported the news on Thursday.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi ‌Majumdar)

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