KFC Drops Pepsi, Switches Beverages to Coca-Cola
KFC has ended its Pepsi contract and adopted Coca-Cola, Chosunbiz reports. Contract value, switch date, and market scope remain undisclosed, leaving the economics of the deal unverified.

KFC has ended its beverage contract with Pepsi and adopted Coca-Cola, according to a report from South Korean business outlet Chosunbiz. The switch places the fried-chicken chain on the Coca-Cola side of the long-running soda rivalry and removes a marquee account from Pepsi's foodservice portfolio.
The report did not disclose contract values, expiration terms, or a switch date. Those gaps matter. Beverage pouring rights are among the most quietly lucrative lines in restaurant economics, and the terms of this deal remain unknown.
What does the switch change at the operator level?
For franchisees, a beverage change touches equipment, supply chains, and cup branding. Fountain systems must be reworked or replaced. The source does not say who pays for that conversion, whether KFC corporate or the individual franchise operators. It also does not say whether the change applies globally or only to specific markets, such as South Korea, where Chosunbiz first reported the story.
That scope question is not cosmetic. KFC operates thousands of units across dozens of countries, and beverage contracts are frequently negotiated market by market rather than chain-wide. A single-country switch is a contract dispute; a global realignment is a strategic break.
Beverage supply sits inside cost of goods for most operators, and fountain drinks carry some of the highest margins in the building. A cup of soda costs a restaurant fractions of its menu price. When a chain this size changes pourers, syrup pricing, equipment rebates, and marketing support all move at once. None of those figures appear in the report.
Why does the rivalry matter?
Coca-Cola and Pepsi fight over large accounts because pouring contracts lock in volume for years. Chicken chains have historically split between the two camps. A defection of KFC's scale gives Coca-Cola a visible win and gives Pepsi a visible loss, even before any financial details surface.
The Chosunbiz framing casts the move as an intensification of the soda rivalry. That is plausible. It is also unverified in scope, because the report does not establish how many units or markets the decision covers.
What is not said
The report names the two companies and the direction of the switch. It does not name:
- The length or remaining term of the prior Pepsi contract
- A date when Coca-Cola products appear in stores
- Which markets are affected
- Any statement from KFC, Coca-Cola, or Pepsi
- Financial terms or volume estimates
No executive from any of the three companies is quoted. Until one of them confirms the scope, the story rests on a single outlet's reporting.
What comes next
Watch for confirmation from KFC's parent, Yum! Brands, and for statements from Coca-Cola and PepsiCo. The timing of on-shelf changes in individual markets will reveal whether this is a regional contract ending or a broader realignment. Franchisee communications, where they surface, will show who absorbs the equipment cost of the change.
More from Marcus Bennett
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Market editor covering technology and product news in Restaurant and hotel operations at The Pass Brief.
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