PepsiCo and Taco Bell renew beverage deal through 2036, a week after KFC's Coke switch
The renewed partnership keeps Pepsi products at Taco Bell in the U.S. and in markets including Canada, the U.K., Ireland and Thailand.
At a glance
- PepsiCo and Taco Bell renewed their partnership through 2036, keeping Pepsi products at the chain in the U.S. and abroad.
- The deal was announced a week after KFC, Taco Bell's sister chain under Yum Brands, said it would switch to Coca-Cola in the U.S.
- Taco Bell has long served exclusive Pepsi-based items like Mountain Dew Baja Blast and Doritos Locos Tacos.
PepsiCo and Taco Bell have renewed their long-running partnership through 2036, the food and beverage company said Thursday, keeping Pepsi products on the restaurant chain's menu in the United States and in several overseas markets.
The announcement came one week after Taco Bell's sister chain, KFC, said it will switch to Coca-Cola as its U.S. beverage supplier. Both chains are owned by Yum Brands.
A rare change in drink suppliers
It is unusual for large restaurant chains to change drink providers, but the move is not unprecedented, as Coca-Cola and PepsiCo try to win contracts through perks and other inducements. Coke's win over Pepsi was more symbolic, representing another example of how the Atlanta-based company has been beating its rival in the soda category.
Ties that go back decades
Pepsi's relationship with Taco Bell and KFC parent Yum Brands spans decades, back to when the beverage giant owned the restaurant chains before spinning them into a separate public company in 1997.
Despite KFC's defection in the U.S., Pepsi remains an important partner for Yum and for the chain's international markets, KFC U.S. President Catherine Tan-Gillespie wrote in a memo on Oct. 15 that was obtained by CNBC.
Exclusive items and overseas markets
Thanks to its partnership with Pepsi, Taco Bell has long served exclusive menu items that use Pepsi products, such as Mountain Dew Baja Blast and Doritos Locos Tacos.
The renewed deal also means that Taco Bell international markets such as Canada, the United Kingdom, Ireland and Thailand will serve Pepsi products.
Source: CNBC.
Questions and answers
- How long does the Pepsi and Taco Bell deal last?
- PepsiCo said the renewed partnership with Taco Bell runs through 2036. It covers Taco Bell restaurants in the U.S. and international markets such as Canada, the United Kingdom, Ireland and Thailand.
- Why is KFC switching to Coca-Cola?
- KFC, a sister chain to Taco Bell under Yum Brands, said it will switch to Coca-Cola as its U.S. beverage supplier. KFC U.S. President Catherine Tan-Gillespie said in an Oct. 15 memo that Pepsi remains an important partner for Yum and for KFC's international markets.
- Which drinks does Taco Bell serve exclusively?
- Taco Bell has long served exclusive menu items that use Pepsi products, including Mountain Dew Baja Blast and Doritos Locos Tacos, according to CNBC.
