Coke is winning the Pepsi challenge as KFC becomes the latest brand to switch

Coca-Cola has achieved another triumph in its ongoing rivalry with Pepsi. The soft drink giant announced in January that KFC, a fast food chicken chain, will be serving Coca-Cola products in all of its 3,600 U.S. locations by spring 2023. Catherine Tan-Gillespie, president of KFC in the United States, expressed her enthusiasm for the collaboration between the two brands, highlighting their long-standing popularity and commitment to innovation.

This partnership signifies a significant shift in the fast food industry, as KFC has been serving PepsiCo products for the past 40 years. PepsiCo acquired KFC in 1986, alongside Pizza Hut and Taco Bell, before separating these food brands into Yum Brands in 1997. KFC had already been using Coca-Cola products prior to the sale. After the deal, most Kentucky Fried Chicken outlets continued to serve Coke, while PepsiCo targeted both company-owned and franchised restaurants for conversion.

Coca-Cola's victory is not the only recent change in the beverage landscape. Several companies, including Costco's food court, Marriott International hotels, and the Indianapolis Motor Speedway, have also recently transitioned from PepsiCo to Coca-Cola. Despite the challenges, PepsiCo has recently signed a 10-year deal with Subway, marking a new chapter in the brand's history. Meanwhile, Coca-Cola's stock has risen 31.60% year-to-date, while PepsiCo's shares have declined 10.55% over the same period.