KFC Follows Marriott’s Footstep, Cuts US Ties With Pepsi For Coca-Cola, Retains Partnership In Africa

American fast-food giant KFC has followed Marriott International’s lead in switching from PepsiCo to Coca-Cola, announcing plans to replace Pepsi beverages across its 3,600 restaurants in the United States while retaining its supply partnership with PepsiCo in Africa and other international markets.

The decision, announced recently, comes months after Marriott International ended its 34-year relationship with PepsiCo in July in favour of a global Coca-Cola agreement covering nearly 10,000 hotels worldwide, including properties in Nigeria, South Africa and other African markets.

While Marriott’s switch extends across its international hotel network, KFC’s new arrangement applies exclusively to its US restaurants. The transition will begin in January 2027 and is expected to be completed by spring.

KFC’s decision marks another setback for PepsiCo in its competition with Coca-Cola for major corporate customers, although the beverage company will continue supplying KFC outlets outside the US following the renewal of its international supply arrangements.

KFC’s relationship with PepsiCo dates back to 1986, when the beverage company acquired the restaurant chain. Although PepsiCo separated its restaurant businesses in 1997, KFC retained Pepsi as its beverage supplier in the United States.

Catherine Tan-Gillespie, president of KFC US, said the decision to partner with Coca-Cola was part of efforts to modernise the company’s restaurants, strengthen customer engagement and improve the dining experience.

“I’m incredibly excited to bring KFC and Coca-Cola together. These are two of the greatest originals, with deep consumer love and a shared belief that the best brands continue to evolve,” she said.

Tan-Gillespie added that the partnership would go beyond beverages, describing it as an important step towards evolving the KFC brand and creating a more relevant experience for customers.

The agreement brings together two major consumer brands as Coca-Cola continues to compete with PepsiCo for beverage supply contracts across the restaurant and hospitality industries.

KFC’s announcement follows Marriott International’s July 2026 decision to replace PepsiCo with Coca-Cola across its global hotel network, ending a partnership that had lasted 34 years.

The agreement covers nearly 10,000 hotels worldwide, with Coca-Cola products being introduced across guestrooms, restaurants, lounges and event spaces.

The arrangement also extends to African markets, including Nigeria and South Africa, making Marriott’s decision broader in geographical scope than KFC’s latest move.

According to travel blog View from the Wing, Marriott cited customer preferences as a key factor behind its decision, informing its hotels that “The Coca-Cola portfolio is favored by more than 70% of Marriott’s guests.”

The two decisions highlight Coca-Cola’s growing success in securing major corporate accounts from its rival, although the immediate implications for PepsiCo differ.

While Marriott’s agreement affects its global hotel operations, KFC’s switch is restricted to the US, allowing PepsiCo to maintain its supply relationship with the fast-food chain across other markets.

KFC’s African operations will remain unaffected by the US supplier change, as the company continues to rely on PepsiCo under its international beverage supply arrangements.

According to KFC Africa’s inaugural impact report, the fast-food chain operated 1,573 restaurants across 22 sub-Saharan African countries in 2025, employing more than 40,000 people.

The company plans to expand its African footprint to 3,000 outlets by 2035, building on its presence in key markets such as South Africa, Nigeria, Kenya, Ghana and Uganda.

The continued partnership means customers in these markets will not immediately experience the beverage changes announced for KFC’s US restaurants.

This also distinguishes KFC’s decision from Marriott’s global agreement, which has brought Coca-Cola products into hotels across several international markets, including Africa.

For PepsiCo, retaining KFC’s international business provides some protection against the loss of its US contract, particularly as the company faces increasing pressure in its domestic market.

The loss of KFC’s US beverage contract comes amid broader challenges for PepsiCo, including weakening consumer demand, rising operating costs and sluggish sales growth in North America.

On October 8, 2026, the company acknowledged that its recovery was taking longer than expected, prompting additional cost-cutting measures aimed at improving profitability.

According to Bank of America analysts, losing KFC’s US contract could cost PepsiCo about $500 million in annual sales, equivalent to approximately three per cent of Pepsi Beverages North America’s concentrate sales.

Although the loss adds to PepsiCo’s competitive pressures, analysts believe the financial impact remains manageable.

The company will also continue supplying beverages to KFC internationally, preserving a longstanding commercial relationship outside the US market.

The latest development underscores the intensifying competition between Coca-Cola and PepsiCo for major corporate customers, with both companies seeking to strengthen their market positions through partnerships shaped by consumer preferences, brand strategy and commercial priorities.