KFC picks Coca-Cola as US soda supplier, ditches longtime partner PepsiCo
The partnership began when PepsiCo acquired KFC in a bid to expand into food and snacks
KFC announced on Thursday (Oct 15) that it would partner with Coca-Cola for its US soda supply, ending a long-standing 40-year relationship with PepsiCo. This decision could negatively impact PepsiCo's soda sales, as its snack business faces high prices and a shift towards healthier alternatives. PepsiCo CEO Ramon Laguarta expressed concerns over rising costs, stating that growth and margin recovery are taking longer than expected.
PepsiCo spun off KFC in 1997 but continued to be a beverage partner for Yum Brands, its parent company. Jay Woods, a chief market strategist at Freedom Capital Markets, warned that losing such a prominent brand partner could be detrimental to PepsiCo. The partnership announcement was reported by The Wall Street Journal, citing sources familiar with the matter.
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