KFC customers in Nigeria and other African markets will continue to have PepsiCo as their beverage supplier despite the fast-food chain’s decision to replace Pepsi with Coca-Cola across its 3,600 restaurants in the United States from January 2027.
The US transition is expected to be completed by spring 2027, leaving KFC’s international beverage arrangements unchanged and limiting the immediate impact of the decision to the American market.
The development, reported by Brandspur Brand News, highlights how major global brands can pursue different commercial partnerships across markets even as competition between Coca-Cola and PepsiCo intensifies.
KFC’s US decision follows Marriott International’s move in July 2026 to end its 34-year relationship with PepsiCo in favour of Coca-Cola across nearly 10,000 hotels worldwide, including properties in Nigeria and South Africa.
However, unlike Marriott’s global agreement, KFC’s new arrangement is restricted to its American restaurants. Its African outlets will retain their existing supply relationship with PepsiCo.
KFC Africa operated 1,573 restaurants across 22 sub-Saharan African countries in 2025, according to its inaugural impact report. The business employed more than 40,000 people and plans to expand its footprint to 3,000 outlets by 2035.
The continued partnership means the US switch will not immediately change the beverage offering at KFC restaurants in Nigeria and other African markets covered by its international supply arrangements.
Why KFC Is Changing Its US Beverage Supplier
KFC US President Catherine Tan-Gillespie said the partnership with Coca-Cola was part of efforts to modernise the restaurant chain, strengthen customer engagement and improve the dining experience.
She described the agreement as an opportunity for two established brands to evolve and create a more relevant experience for consumers.
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, the partnership continued in the US.
The loss of KFC’s American beverage contract represents a setback for PepsiCo as it competes with Coca-Cola for major restaurant and hospitality customers.
Bank of America analysts estimated that losing the contract could cost PepsiCo approximately $500 million in annual sales, equivalent to about three per cent of Pepsi Beverages North America’s concentrate sales.
However, PepsiCo will retain its international supply arrangements with KFC, preserving an important commercial relationship outside the United States.
The two recent decisions demonstrate the importance of corporate beverage contracts in the competition between Coca-Cola and PepsiCo, while showing that changes in one market do not necessarily extend to a brand’s entire global network.
