KFC is ending a four-decade relationship with PepsiCo and will begin serving Coca-Cola beverages at its U.S. restaurants in January 2027, the companies announced this week. The transition, expected to reach all domestic locations by spring 2027, marks a significant operational and branding shift for the fried chicken chain as it works to reverse years of declining U.S. traffic.
The change affects KFC’s roughly 3,700 U.S. restaurants. PepsiCo acquired KFC in 1986 and made Pepsi the exclusive beverage partner for American stores. Even after PepsiCo spun off its restaurant division into what became Yum Brands in 1997, the soda partnership continued. International KFC locations will continue offering PepsiCo products, and PepsiCo has renewed its long-term agreement with sister chain Taco Bell.
KFC U.S. President Catherine Tan-Gillespie framed the move as part of the brand’s ongoing “Kentucky Fried Comeback” turnaround effort. “I’m incredibly excited to bring KFC and Coca-Cola together. These are two originals, with deep consumer love,” she said in a statement. “This partnership is about more than what’s in the cup. It is another step in our work to evolve KFC, strengthen our restaurants, menu offerings and create a more relevant experience for today’s customers.”
In a memo to franchisees and employees, Tan-Gillespie described the switch as “a critical step in the Kentucky Fried Comeback,” adding that a new beverage partner “gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us.” Dagmar Boggs, Coca-Cola’s president of Foodservice & On-Premise, North America, called the partnership an opportunity to pair KFC’s food with Coca-Cola’s portfolio and innovation capabilities.
For many customers, one of the most noticeable consequences will be the disappearance of Mountain Dew Sweet Lightning, the peach-and-honey-flavored soda introduced exclusively at KFC in 2019. Designed to complement the Colonel’s Original Recipe chicken, the bright, sweet beverage (and its limited-time Peaches & Cream “dirty soda” variation) has been a permanent fixture at U.S. locations. Because Mountain Dew is a PepsiCo brand, Sweet Lightning will no longer be available at American KFC restaurants once the Coca-Cola transition is complete. KFC has not yet detailed the full Coca-Cola lineup that will replace its current Pepsi, Mountain Dew, Starry, and Aquafina offerings, though industry observers expect the standard Coca-Cola portfolio along with potential exclusive or co-developed drinks.
The decision comes as KFC seeks to regain ground in a crowded chicken segment dominated by Chick-fil-A and Popeyes. After years of negative same-store sales in the U.S., the chain has introduced value offerings, menu returns such as potato wedges, and refreshed marketing under Tan-Gillespie’s leadership. Beverage innovation has become a priority across quick-service restaurants, with chains expanding into refreshers, customizable “dirty” sodas, and premium fountain options to drive traffic and check averages.
While the switch is a notable win for Coca-Cola and a setback for PepsiCo’s U.S. foodservice business, both companies emphasized that their broader relationships remain intact outside the U.S. KFC system. For fans of Sweet Lightning, however, the window to order the exclusive peach-honey Mountain Dew is closing as the January 2027 rollout approaches.
