KFC chooses Coca-Cola as its soft drink provider, ending its long-standing relationship with PepsiCo
The fast-food brand KFC has reached an agreement with Coca-Cola to be its beverage supplier for U.S. outlets, concluding a partnership with PepsiCo that lasted roughly forty years.
Losing this collaboration with KFC, which operates 3,718 locations in the U.S., could be a hindrance for PepsiCo as it seeks to increase domestic soft drink sales, while its snack segment grapples with rising prices and a consumer trend toward healthier choices.
Increasing expenses have amplified worries for PepsiCo CEO Ramón Laguarta, who remarked earlier this month that growth and margin restoration are taking more time than expected.
The partnership started when PepsiCo purchased KFC to grow its presence in the food and snack industry. Despite PepsiCo selling its stake in KFC in 1997, it continued to supply beverages for the parent company, Yum Brands.
A spokesman for PepsiCo informed Reuters that Yum Brands and PepsiCo have recently extended their contracts for Taco Bell and KFC outlets worldwide. According to the spokesperson, the deal with Taco Bell is set for a duration of 10 years.
