How Coke Loosened Pepsi’s Grip on KFC’s Soda Fountains

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1. 1h ago

   KFC Replaces Pepsi with Coca-Cola at U.S. Soda Fountains

   Kentucky Fried Chicken is switching to Coca-Cola beverages at its restaurants across the United States. The move ends a nearly four-decade run where PepsiCo held the exclusive beverage contract for the fast-food chain. Approximately 3,700 locations are making the transition from Pepsi products to Coke. The shift follows a competitive contest between the beverage giants that involved blind taste tests and strategic discussions. Analysts say losing the contract delivers a notable financial and symbolic blow to PepsiCo's food service division, while expanding Coca-Cola's reach within major fast-food restaurant chains.

   Why it matters

   The agreement marks a major realignment in the fast-food beverage industry, dissolving a partnership that began decades ago when PepsiCo previously owned the chicken chain. The loss of the massive restaurant account places renewed focus on PepsiCo's broader food service ties and follows a period where the company's stock has traded significantly below its 52-week high. Industry observers are monitoring whether the transition will prompt shifts in beverage contracts across other major restaurant groups.

   What is confirmed

   • KFC is replacing Pepsi with Coca-Cola at 3,700 U.S. restaurants after nearly four decades.
   • The transition marks the first time in decades that KFC will serve Coca-Cola beverages in U.S. restaurants.
   • The switch followed a secret showdown featuring taste tests and strategy discussions.

   What to watch next

   • Timeline for completion of the beverage rollout across all 3,700 participating U.S. KFC restaurants.
   • Potential impacts on PepsiCo's remaining food service accounts and future stock performance through 2030.
   Sources used for this update (15)

   1. finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
   2. help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
   3. CNBC — KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades
   4. PR Newswire — TWO SECRET RECIPES, ONE ICONIC PARTNERSHIP: KFC® U.S. ANNOUNCES NEW BEVERAGE PARTNERSHIP WITH THE COCA-COLA COMPANY
   5. Fox Business — KFC replacing Pepsi with Coca-Cola at 3,700 US restaurants after nearly four decades
   6. Yahoo Finance — PepsiCo just lost the KFC US business—here's how much it could sting financially
   7. Yahoo Finance — PepsiCo just lost KFC to Coca-Cola. Here's how much it could sting financially.
   8. Reuters — KFC switch to Coke puts PepsiCo's food service ties in focus, analysts say
   9. AL.com — KFC to make massive change that’ll leave fans divided
   10. WSJ — How Coke Loosened Pepsi’s Grip on KFC’s Soda Fountains
   11. TIKR.com — PepsiCo Is Down 25% From Its 52-Week High and Losing KFC to Coke. Here’s Where the Stock Could Go by 2030
   12. Morning Brew — The colonel says KF-see ya later to Pepsi
   confidence 100%