PepsiCo has extended its partnership with Taco Bell through 2036, the company announced Thursday. This renewal comes just days after Taco Bell's sister chain, KFC, decided to switch to Coca-Cola as its U.S. beverage supplier. The move highlights the ongoing competition between Coke and Pepsi to secure contracts with major restaurant chains through various incentives.
The relationship between Pepsi and Taco Bell's parent company, Yum Brands, dates back decades. Pepsi originally owned the restaurant chains before spinning them off into a separate public company in 1997. Despite KFC's shift to Coca-Cola in the U.S., Pepsi remains a key partner for Yum Brands, particularly in international markets.
Taco Bell has long featured exclusive menu items that incorporate Pepsi products, such as Mountain Dew Baja Blast and Doritos Locos Tacos. The renewed deal ensures that these items will continue to be available in Taco Bell locations across the U.S. and in international markets like Canada, the United Kingdom, Ireland, and Thailand.
KFC U.S. President Catherine Tan-Gillespie acknowledged the importance of Pepsi in a memo obtained by CNBC. She noted that Pepsi's partnership remains crucial for the chain's global operations, even as KFC transitions to Coca-Cola in the U.S.