PepsiCo and Taco Bell have extended their partnership agreement through 2036, according to an announcement made on Thursday. The renewal comes approximately one week following KFC’s decision to transition to Coca-Cola as its primary beverage supplier in the United States market.
The timing of these developments highlights ongoing competition between major beverage companies seeking restaurant partnerships. While such supplier changes are uncommon among large restaurant chains, they do occur as Coca-Cola and Pepsi pursue contracts through various incentives and perks. The shift represents a notable victory for Coca-Cola in its ongoing rivalry with Pepsi, particularly in the broader soda market where the Atlanta-based company has gained ground.
PepsiCo’s historical ties with both chains run deep, stemming from the company’s former ownership of the restaurant brands before spinning them off as a separate public company in 1997. Despite KFC’s departure from its U.S. operations, Pepsi maintains a significant role as a partner for Yum Brands, KFC’s parent company, across international markets. KFC’s U.S. president noted in communications obtained by media outlets that Pepsi remains an important partner in markets outside the United States.
The Taco Bell renewal ensures continued availability of exclusive menu items featuring Pepsi products at its restaurants, including popular offerings like Mountain Dew Baja Blast. The agreement also extends Pepsi’s presence across Taco Bell’s international locations, including Canada, the United Kingdom, Ireland and Thailand.
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