Taco Bell Keeps Pepsi Deal as KFC Moves to Coke in U.S.
WHO:
Fox Business - PepsiCo Global Away from Home President Anne Fink said Taco Bell’s partnership helped spur foodservice innovations and combined Taco Bell’s cultural connection with PepsiCo’s consumer insights, culinary capabilities and beverage expertise.
Fox Business - Taco Bell President Meg Farren called PepsiCo a trusted partner for over two decades and said the companies would work together to drive long-term growth for Taco Bell.
KSL - Taco Bell and PepsiCo renewed their partnership; both are owned by Yum! Brands.
KSL - KFC, Taco Bell’s sister chain, switched its U.S. beverage supplier from PepsiCo to Coca-Cola.
CNBC - Taco Bell and PepsiCo renewed their long-running partnership; Yum Brands owns both Taco Bell and KFC.
CNBC - KFC U.S. President Catherine Tan-Gillespie wrote a memo about Pepsi remaining an important partner for Yum and KFC’s international markets.
KSL - PepsiCo CEO Ramon Laguarta said the company is “not competing well in soft drinks,” including with its newly acquired Poppi brand.
KSL - Elizabeth Lafontaine, director of research at location analytics firm Placer.ai, said Baja Blast exclusives can help differentiate Taco Bell and drive visits.
WHAT:
Fox Business - The renewed partnership covers Taco Bell, Taco Bell Cantina and Live Más Café locations nationwide.
Fox Business - PepsiCo said Baja Midnight, Pepsi Zero Sugar and Starry will remain available alongside Pepsi and Mountain Dew Baja Blast at participating U.S. Taco Bell restaurants.
Fox Business - Doritos Locos Tacos will mark its 15th anniversary in 2027, and PepsiCo said it plans additional flavors.
Fox Business - KFC is replacing Pepsi with Coca-Cola at roughly 3,700 U.S. restaurants.
KSL - Taco Bell and PepsiCo said they will continue collaborating on new beverages and foods through 2036, including new flavors for Doritos Locos Tacos.
KSL - Baja Blast has become a $1 billion brand.
KSL - Taco Bell aims to generate $5 billion in beverage revenue by 2030. It released “Refrescas” drinks and plans more Baja Blast options, including a limited-time pink lemonade with singer Olivia Rodrigo.
CNBC - Taco Bell’s renewed agreement also covers international markets, including Canada, the United Kingdom, Ireland and Thailand, where Pepsi products will be served.
CNBC - Taco Bell has served Pepsi-product menu items including Mountain Dew Baja Blast and Doritos Locos Tacos.
KSL - PepsiCo’s North American beverage unit declined 2% in its most recent quarter.
KSL - Taco Bell generated $17 billion in U.S. systemwide sales last year, compared with KFC’s roughly $5 billion.
WHERE:
KSL - The announced partnership concerns Taco Bell and PepsiCo; KFC’s switch to Coca-Cola concerns the U.S. market.
CNBC - Pepsi products will continue to be served in Taco Bell markets including Canada, the United Kingdom, Ireland and Thailand.
WHEN:
Fox Business - KFC expects Coca-Cola beverages to be available across its U.S. restaurants by spring.
KSL - The Taco Bell–PepsiCo collaboration is set to continue through 2036.
CNBC - The renewed partnership runs through 2036.
WHY:
KSL - PepsiCo’s North American beverage business was under pressure, and the company had lost KFC’s U.S. contract to Coca-Cola.
KSL - Taco Bell is expanding beverages as food prices rise and consumers seek to cut back; it sees beverages as a growth area.
CNBC - Coca-Cola and Pepsi compete for restaurant contracts using perks and other inducements; Coca-Cola’s KFC win was described as symbolic evidence of its gains in the soda category.
HOW:
KSL - Taco Bell and PepsiCo plan to pursue beverage trends in crafted, functional and energy drinks, including energy offerings aimed at Gen Z and new morning and afternoon occasions.
KSL - Taco Bell experienced a traffic decline over the summer linked to a cyclosporiasis outbreak associated with lettuce served at multiple restaurants; it said it would provide a fuller account of the sales impact when releasing earnings next month.
CNBC - Yum Brands’ relationship with PepsiCo dates back decades, to when Pepsi owned the restaurant chains before spinning them into a separate public company in 1997.
(UPDATED October 23, 2026 13:21 UTC)
Taco Bell and PepsiCo have renewed their partnership through 2036, keeping Pepsi products at Taco Bell restaurants in the United States and several international markets. The agreement covers Taco Bell, Cantina and Live Más Café locations, with plans to develop new drinks and foods, including additional Doritos Locos Tacos flavors. Baja Blast, now a billion-dollar brand, remains central to the relationship, alongside options such as Pepsi Zero Sugar, Starry and Baja Midnight. Taco Bell is also pursuing crafted, functional and energy drinks, as it looks to make beverages a bigger source of growth. The news comes as PepsiCo faces pressure in its North American beverage business. KFC, Taco Bell’s sister chain under Yum! Brands, is switching its roughly 3,700 U.S. restaurants from Pepsi to Coca-Cola, with the change expected by spring. PepsiCo and Taco Bell leaders described their long partnership as a foundation for future growth.
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(UPDATED October 23, 2026 01:35 UTC)
Taco Bell and PepsiCo have renewed their long-running partnership through 2036, even as Taco Bell’s sister chain, KFC, switches its U.S. beverage supplier to Coca-Cola. The agreement covers international markets including Canada, the United Kingdom, Ireland and Thailand, and calls for new drinks and food, including more Doritos Locos Taco flavors. Taco Bell is building on the success of Baja Blast, now a billion-dollar brand, as it seeks to grow beverage revenue to $5 billion by 2030. Planned offerings include more Baja Blast options and drinks aimed at energy, functional beverage and morning markets. The deal comes as PepsiCo’s North American beverage sales declined, and its CEO acknowledged the company is struggling to compete in soft drinks. Taco Bell says beverages are a growth opportunity as customers look to spend less on food. Meanwhile, Pepsi remains an important partner for Yum Brands and KFC’s international business.