Coke is winning the Pepsi challenge as KFC becomes the latest brand to switch

fastcompany.com

Coke has scored another victory in its ongoing war with Pepsi.  Starting in January, fast food chicken chain KFC will be offering Coca-Cola products in its U.S. locations. All 3,600 locations nationwide should have made the switch by the spring, Coca-Cola said in the announcement. “I’m incredibly excited to bring KFC and Coca‑Cola together,” KFC U.S. president Catherine Tan-Gillespie said in a statement. “These are two of the greatest originals, with deep consumer love and a shared belief that the best brands continue to evolve.” Tan-Gillespie continued: “This partnership is about more than what’s in the cup. It is another important step in our work to evolve KFC, strengthen our restaurants and create a more relevant experience for today’s customers.” A long history The shift comes after 40 years of PepsiCo offerings at the fast food chain.  PepsiCo bought KFC in 1986 as part of an expansion into food that also included ownership of Pizza Hut and Taco Bell. However, the drink company spun off its food brands into what is now Yum Brands in 1997.  KFC offered Coca-Cola products before the sale. “Most of Kentucky Fried Chicken’s outlets serve Coke products from their fountains, but Pepsico will immediately switch the 1,800 company-owned restaurants to its own beverages and will make a big push to get the franchised outlets to switch as well,” according to a 1986 New York Times article about the deal.  Now, the brand is finally returning to Coca-Cola. PepsiCo, however, will keep serving Taco Bell, the beverage giant confirmed, as well as “many” international KFC markets. That piece of the news was first reported by the Wall Street Journal . PepsiCo declined further comment. A series of soda switches KFC is not alone. A number of companies have recently announced their plans to switch from Pepsi to Coke. The last couple years have seen Costco’s food court, Marriott International hotels, and even the Indianapolis Motor Speedway ditch PepsiCo in favor of Coca-Cola.  It’s not all heartbreak for PepsiCo, though, with Subway starting a 10-year deal with the brand in January 2025. The fast food chain had previously offered Coca-Cola products for 20 years.  Shares of Coca-Cola (NYSE: KO) are up 31.60% year-to-date (YTD), while PepsiCo’s shares (Nasdaq: PEP) are down 10.55% over the same period. This story was updated with additional context and PepsiCo’s response to our inquiry.