PepsiCo would lose longtime KFC beverage supplier role in January if deal closes
KFC is nearing a deal to sign Coca-Cola as its beverage provider at thousands of U.S. restaurants, according to people familiar with the matter — a switch that would end PepsiCo’s long tenure as the chicken chain’s drink supplier.
The potential deal would represent a major blow to KFC’s longtime supplier PepsiCo, the people said. Talks are at an advanced stage, and a deal could be announced as soon as Thursday. The transition to Coca-Cola at KFC U.S. would begin in January if the deal is completed.
The Wall Street Journal reported the development Thursday. In trading reported the same day, shares of PepsiCo fell 0.78% and shares of Coca-Cola rose 0.20%, according to the Journal’s account.
KFC operates thousands of restaurants in the United States, and PepsiCo has been the chain’s longtime beverage supplier.