Food & Beverage

Pepsi renews deal with KFC International

Photo: Shutterstock

November 6, 2026 by Valerie Gritton — Editor, Pizza Marketplace

Summarize withChatGPTGrokPerplexityClaude

PepsiCo has renewed its beverage supply agreement with KFC across several international markets, including Australia, India, U.K., Spain, Germany, France, the Netherlands and Belgium, according to a Market Watch report.

The agreement comes after KFC, owned by Yum! Brands, announced plans to replace longtime beverage partner Pepsi with Coca-Cola at thousands of U.S. locations.

Under the renewed international partnership, PepsiCo will continue supplying beverages while working with KFC to customize drink selections and menu offerings to local tastes. The companies also plan to expand KFC's beverage lineup to better appeal to Gen Z consumers.

With the agreement, PepsiCo is retaining two significant relationships within Yum! Brands' portfolio, despite losing its nearly 40-year beverage partnership with KFC in the U.S.

In October, PepsiCo renewed its U.S. beverage partnership with Taco Bell for another 11 years, extending the agreement through 2036. The deal ensures Pepsi, Mountain Dew, Starry and signature offerings such as Mountain Dew Baja Blast and Baja Midnight will remain available at participating Taco Bell, Taco Bell Cantina and Live Más Café locations nationwide.

The companies also plan to expand beverage innovation, with an emphasis on crafted, functional and energy drinks designed to appeal to younger consumers, particularly Gen Z. The partnership builds on more than two decades of collaboration, including the billion-dollar Baja Blast brand and Doritos Locos Tacos.

Meanwhile, Coca-Cola is preparing to take over as KFC's U.S. beverage provider. The transition will begin in January 2027 and is expected to reach all 3,718 U.S. KFC restaurants by spring.