PepsiCo has renewed its partnership with KFC across the UK and seven other markets, continuing as the chain’s beverage partner, Grocery Gazette reported on 9 November. The renewal comes weeks after KFC moved its US drinks business to Coca-Cola, Just Drinks reported.
PepsiCo will remain KFC’s beverage partner in the UK, Australia, India, Spain, Germany, France, the Netherlands and Belgium. The renewal builds on decades of collaboration between the two companies, which already work together across markets in Europe, the Middle East, Asia-Pacific and Latin America. Grocery Gazette gives no financial terms or length for the renewed agreement.
Brands and menu items in the deal
PepsiCo will support KFC’s efforts to develop more locally relevant food and drink options, drawing on a portfolio that includes Pepsi MAX, Pepsi Zero Sugar, 7UP and Lipton Peach Iced Tea. The partnership will also focus on new menu items that combine PepsiCo’s snack brands with KFC’s food.
One example is Doritos Loaded, which is available in selected markets and combines KFC’s chicken tenders with Doritos tortilla chips and Mexican-inspired toppings. Grocery Gazette does not say whether Doritos Loaded is on sale in the UK.
Gen Z and the drinks offer
PepsiCo said the collaboration would help KFC attract new customers and drive growth by introducing products tailored to changing consumer preferences. It will also support KFC’s drinks offer, with a particular focus on younger Gen Z consumers and growing demand for crafted, functional and energy drinks.
Eugene Willemsen, chief executive of PepsiCo international beverages, said KFC is “building great momentum across its international markets”. He said PepsiCo is “moving at the speed of culture” to help KFC build a more modern and relevant beverage business.
Good to know
KFC UK states that around 95% of its restaurants are franchised. Neither Grocery Gazette nor Just Drinks says how the renewed agreement applies to individual UK franchisees. L’Express Franchise has also covered a KFC opening at Brighton Marina and the Taco Bell opening at Ashford Waterbrook Park.
The US contract and the Taco Bell deal
Just Drinks reports that PepsiCo announced the renewal in a statement on 6 November, weeks after losing KFC’s US business to Coca-Cola. That change ends a 40-year-old partnership, and the new US contract starts next year. In October, KFC’s sister brand Taco Bell expanded its ties with PepsiCo in a deal covering the US, Canada, Ireland, Thailand and the UK.
KFC and Taco Bell are both owned by Yum! Brands, which separated from PepsiCo as an independent public company in 1997. Just Drinks adds that PepsiCo cut its 2026 earnings outlook after margin pressure in North America. It now expects core earnings per share to rise by 1% to 2% this year.
Markets and next steps
PepsiCo said the partnership would allow both companies to continue developing food and beverage experiences tailored to individual markets as KFC expands its international footprint. Willemsen added that PepsiCo is proud of the longstanding partnership and looks forward to building on the foundation.
The report gives no detail on UK menu changes, launch dates or the share of UK restaurants that will carry the new products. Any UK detail would have to come from KFC or PepsiCo themselves.
