PepsiCo and KFC international partnership renewal: Overview
- PepsiCo and KFC have renewed their partnership across eight international markets including the UK, India, Australia, Germany and France
- The deal supports KFC’s push to strengthen its beverage offering with new flavours, functional drinks and energy products
- PepsiCo aims to help KFC attract Gen Z consumers through innovation, localisation and category-leading beverage concepts
- The companies will continue collaborating on foodservice innovation, building on launches such as Doritos Loaded in select markets
- The renewal comes despite KFC’s decision to switch its US beverage supply from PepsiCo to Coca-Cola from January 2027 onward
PepsiCo has renewed its longstanding beverage partnership with KFC across eight international markets, including the UK, as the fast-food chain looks to strengthen its drinks offering and tap into new consumption occasions.
The agreement covers Australia, India, the UK, Spain, Germany, France, the Netherlands and Belgium, extending a relationship that spans several decades.
The renewal comes as KFC looks to put greater emphasis on beverages as part of its restaurant offering, with opportunities ranging from new flavour collaborations to functional and energy drinks.
PepsiCo will bring its portfolio of beverage brands and innovation capabilities to support the chain’s ambitions, including developing products that appeal to younger consumers.
PepsiCo looks to tap Gen Z drinks opportunities
The partnership will see PepsiCo continue to supply a range of beverages to KFC restaurants, with selections tailored to local consumer preferences and dining occasions.
Products available across the markets include Pepsi Zero Sugar, Pepsi Max, Pepsi Max Cherry, Lipton Peach Iced Tea and 7UP. Availability varies by country.
The companies will also continue to collaborate on food and beverage innovations. One example is Doritos Loaded, a menu item available in select markets that combines KFC chicken tenders with Doritos tortilla chips and Mexican-inspired toppings.
PepsiCo said it would support KFC’s efforts to expand its beverage strategy and introduce new offerings that appeal to changing consumer tastes, particularly among Gen Z.
The drinks group highlighted opportunities across crafted, functional and energy beverages, as well as flavour collaborations designed to reflect local consumer preferences.
Eugene Willemsen, CEO of International Beverages at PepsiCo, said: “KFC is building great momentum across its international markets.”
“As consumer tastes continue to evolve, PepsiCo is moving at the speed of culture, bringing new capabilities and category-leading innovation, to help KFC build a more modern, distinctive, and relevant beverage business around the world.”
Coca-Cola takes KFC’s US business after 40 years
The international renewal comes after KFC announced plans to switch its US beverage supplier from PepsiCo to Coca-Cola, ending a relationship that had lasted nearly 40 years. The change is expected to begin in January 2027.
KFC President Catherine Tan-Gillespie said the move forms part of the chain’s wider plans to modernise its business, strengthen its restaurant and menu offerings, and give customers more reasons to visit.
She described the two companies as well-loved brands, adding that the partnership would help create a more relevant experience for today’s consumers.
The move highlights the ongoing competition between Coca-Cola and PepsiCo for major restaurant partnerships. Tim Harms, CEO of beverage consultancy Enliven, said neither company can afford to take its existing deals for granted.
“There’s no beverage deal that’s safe. There’s no beverage deal that’s off limits for the competitor to come in and try to win it over,” he said.
Looking ahead, Harms argued that future restaurant partnerships would be won through innovation rather than simply the traditional rivalry between the two brands.
“The next beverage agreements, pouring rights partnerships, will not be about red versus blue. It’ll be about which company is able to innovate.”
