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KFC US Switches Beverage Partner from PepsiCo to Coca-Cola

KFC US Switches Beverage Partner from PepsiCo to Coca-Cola

MGR Online•Economy•36m ago

Reader Briefing

KFC US is transitioning its beverage partnership from PepsiCo to The Coca-Cola Company across 3,718 branches starting January 2027.

  • •KFC US will replace PepsiCo with The Coca-Cola Company as its beverage partner in 3,718 stores.
  • •The transition begins in January 2027 and is expected to be complete by the spring of the same year.
  • •Bank of America analysts estimate the move could impact PepsiCo's related sales by approximately 500 million USD or 16,770 million Baht per year.
  • •The switch is part of a broader brand revitalization plan by KFC US to regain market share.

Overview

  • •KFC US will start transitioning from PepsiCo to The Coca-Cola Company in January 2027.
  • •Bank of America estimates the loss of KFC US could impact PepsiCo's related sales by approximately 500 million USD or 16,770 million Baht annually.
  • •The deal covers 3,718 KFC branches in the US according to Reuters, while Coca-Cola cites approximately 3,600 branches.
  • •KFC US is implementing this change as part of a brand recovery plan involving marketing adjustments and the return of familiar menu items.
  • •KFC has previously switched from Pepsi to Coca-Cola in New Zealand, Indonesia, Singapore, and Malaysia.
  • •Analysts from Jefferies warn that the loss of a long-term major partner may raise questions about PepsiCo's business relationship strength with other clients.
  • •PepsiCo maintains its relationship with KFC International and has renewed its contract with Taco Bell.
  • •KFC US will monitor sales per store and customer response after the system transition begins in 2027.

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Key Quotes

Catherine Tan-Gillespie
"This collaboration is more than what is in the glass, but another step in developing the brand, restaurant, and menu to meet the needs of today's customers."
ความร่วมมือครั้งนี้เป็นมากกว่าสิ่งที่อยู่ในแก้ว แต่เป็นอีกขั้นของการพัฒนาแบรนด์ ร้านอาหาร และเมนูให้ตอบโจทย์ลูกค้ายุคปัจจุบัน

Key Entities

Organization

KFCℹ️
A fast-food chain in the US and internationally that is switching its beverage partner to Coca-Cola in the US market.
PepsiCoℹ️
A beverage and snack company that is losing its partnership with KFC US after approximately 40 years.
The Coca-Cola Companyℹ️
A beverage company becoming the new partner for KFC US.
Reutersℹ️
A news agency that reported on the partner change and analyst estimates.
Bank of Americaℹ️
A financial institution whose analysts estimated the financial impact of the KFC US account loss on PepsiCo.
Freedom Capital Markets
A financial firm providing analysis on the image impact of the KFC deal.
Jefferiesℹ️
An analysis firm concerned about the long-term perception of PepsiCo's business relationships.
Jointℹ️
An independent advertising agency.
Nation’s Restaurant News
A publication reporting on KFC's brand recovery plan.
Restaurant Brands New Zealandℹ️
A business operator that provided KFC sales data in New Zealand.
PT Fast Food Indonesia
The business operator of KFC in Indonesia.
PT Coca-Cola Distribution Indonesia
The beverage supplier for KFC in Indonesia as of August 16, 2019.
Mothershipℹ️
A media outlet that KFC Singapore confirmed the Coca-Cola partnership to.
QSR Brands
The operator of KFC and Pizza Hut in Malaysia.
Coca-Cola Malaysia
The entity that partnered with QSR Brands on August 2, 2022.
Pizza Hutℹ️
A restaurant chain in Malaysia that also switched to Coca-Cola.
Taco Bellℹ️
A restaurant chain that renewed its contract with PepsiCo.
McDonald’sℹ️
A large restaurant partner of Coca-Cola.
Wendy’sℹ️
A large restaurant partner of Coca-Cola.

Person

Jay Woods
Chief Market Strategy Officer of Freedom Capital Markets.
Richard Exon
Founder and partner of Joint, an independent advertising agency.
Alicia Kelso
Executive Editor of Nation’s Restaurant News.
Catherine Tan-Gillespie
President of KFC U.S.
Dagmar Boggs
President of Foodservice & On-Premise for North America at Coca-Cola.

Place

McKinney
A city in Texas where a KFC Open House prototype store is located.
Texas(เท็กซัส)ℹ️
A US state where the KFC Open House prototype is located.
New Zealand(นิวซีแลนด์)ℹ️
A market where KFC switched from Pepsi to Coca-Cola in January 2016.
Indonesia(อินโดนีเซีย)ℹ️
A market where KFC switched partners in 2019.
Singapore(สิงคโปร์)ℹ️
A market where KFC completed its switch to Coca-Cola on July 20, 2022.
Malaysia(มาเลเซีย)ℹ️
A market where KFC announced a partnership with Coca-Cola in August 2022.