Taco Bell Keeps Pepsi Through 2036 As KFC Switches to Coke
Baja Blast fans can breathe easy.
Taco Bell and PepsiCo have renewed their partnership for another 11 years, keeping Pepsi in Taco Bell fountains through 2036. They announced the deal Oct. 22, one week after sister chain KFC said it would drop Pepsi for Coca-Cola in the U.S. after 40 years.
Both chains belong to Yum Brands, like two siblings from the same house cheering for rival teams.
RELATED: Yum is Down to Three Brands, and Taco Bell Carries Most of the Weight
The new deal covers the U.S., Canada, the U.K., Ireland and Thailand. The companies created two of Taco Bell’s signature items: Doritos Locos Tacos and Mountain Dew Baja Blast, which debuted in 2004 and is now a $1 billion brand.
“Strong partnerships have always been critical to how Taco Bell grows and evolves,” said Meg Farren, Taco Bell’s president for North America. “PepsiCo has been a trusted partner for over two decades, and we look forward to continuing to work hand-in-hand to drive long-term growth for the Taco Bell brand, create greater value across our system and find new ways to meet the evolving needs of our consumers.”
Anne Fink, president of PepsiCo Global Away from Home, credited Taco Bell with pushing PepsiCo forward. “Some of PepsiCo’s best foodservice innovations have come from partnerships that challenge us to think differently, and Taco Bell has always brought that energy,” Fink said.
Recently opened Taco Bell locations:
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Fast Food • The companies plan to chase crafted, functional and energy drinks, including energy options for Gen Z and new morning and afternoon visits. Functional drinks add a perk, like vitamins or protein.
“This partnership is about more than what’s in the cup,” KFC U.S. President Catherine Tan-Gillespie said. “It is another step in our work to evolve KFC, strengthen our restaurants, menu offerings and create a more relevant experience for today’s customers.”
RELATED: KFC Tests a Prototype Called Open House and a New Look for the Brand
Tan-Gillespie launched a comeback plan last year after years of lost market share. Calling the brand “loved but latent,” the KFC chief added value deals and brought back potato wedges and popcorn chicken.
KFC will start the changeover in January 2027 and expects to serve Coke in all U.S. restaurants by spring. PepsiCo will remain a beverage partner for KFC in international markets.
PepsiCo bought KFC in 1986 and spun it off, along with Taco Bell, in 1997 into Yum Brands.
Taco Bell fans can count on Baja Blast through 2036, plus new Doritos Locos Tacos flavors when the taco turns 15 in 2027. KFC fans should expect a different lineup at the fountain by next spring.
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We are disappointed that ENCHIRITO has been taken off the menu. Also, we can no longer take the sour cream off the supreme soft taco. We eat at taco bell 5 out of 7 times a week. It is busy every time we are there. A number of customers have told us that if the enchirito is removed, they will no longer come to taco bell. We are very disappointed. Seth is a wonderful ❤️ employee and is a great example for your company.