PepsiCo just lost KFC as 3,700 U.S. restaurants switch to Coca-Cola
KFC is ending a 40-year partnership with PepsiCo.
The short version
- The fast-food chain will switch to Coca-Cola products at 3,700 U.S. restaurants.
- PepsiCo CEO Ramon Laguarta admitted they are not competing well in soft drinks.
- Rival Coca-Cola continues to build its total beverage brand empire.
PepsiCo, the giant food and beverage company that owns Quaker Oats and Gatorade, just suffered a major blow in the cola wars. According to Fortune, fast-food chain KFC is switching to Coca-Cola products across its 3,700 U.S. restaurants, ending a 40-year partnership.
PepsiCo CEO Ramon Laguarta admitted on an earnings call that "we're not competing well in soft drinks." While Taco Bell renewed its deal with PepsiCo for 11 more years, the loss of KFC stings. The beverage division's struggles trace back to decisions made by former leaders who added complexity and shifted focus toward health trends, allowing Coca-Cola to capture market share.
Meanwhile, Coca-Cola shed low-margin bottling plants and built 32 billion-dollar brands. PepsiCo still generates twice as much revenue as Coca-Cola with a diversified portfolio of snacks and drinks. But in the fizzy drink aisle, losing a foundational partner like KFC shows how quickly market dominance can slip away.
Photo: Zarateman, CC0, via Wikimedia Commons
