IRVINE, Calif., Oct. 23, 2026 — PepsiCo and Taco Bell have extended their beverage partnership until 2036, keeping Pepsi products on Taco Bell menus in the United States and international markets, including Canada, the United Kingdom, Ireland and Thailand.
The agreement comes one week after KFC, Taco Bell’s sister chain under Yum Brands, announced plans to replace PepsiCo with Coca-Cola as its U.S. beverage supplier. The deal gives Coca-Cola another major restaurant account as the two beverage companies compete for national restaurant contracts through financial incentives and other commercial offers. Although large restaurant chains rarely change beverage suppliers, such changes are not unprecedented. Coca-Cola’s deal with KFC also marks a symbolic win for the Atlanta-based company in its rivalry with PepsiCo in the U.S. soft drink business.
Decades of Partnership
PepsiCo’s ties to Taco Bell and KFC date to the period when it owned both restaurant chains. In 1997, PepsiCo spun off its restaurant business into a separate publicly traded company that later became Yum Brands. The companies have maintained business relationships since the separation.
KFC’s decision to switch beverage suppliers in the United States does not end PepsiCo’s relationship with Yum Brands. PepsiCo will remain a beverage supplier to KFC in international markets where the chain continues to serve its products, according to a memo written by KFC U.S. President Catherine Tan-Gillespie on Oct. 15.
Signature Menu Products
Taco Bell has served Mountain Dew Baja Blast, a PepsiCo beverage, for years. The drink is one of the signature items on Taco Bell’s menu.
The partnership also connects PepsiCo’s snack brands with Taco Bell’s food offerings. Doritos Locos Tacos feature taco shells made with Doritos, linking the snack brand to one of the chain’s signature menu items. These products connect PepsiCo brands with Taco Bell’s food and beverage sales, giving both companies a commercial interest in maintaining the partnership.
Taco Bell’s International Markets
The agreement keeps PepsiCo products on Taco Bell menus in Canada, the United Kingdom, Ireland and Thailand until 2036.
Yum Brands will continue working with different beverage suppliers across its restaurant chains and markets. KFC will switch to Coca-Cola in the United States, while Taco Bell will retain PepsiCo products under its extended agreement.
Photo credit: PepsiCo
About Taco Bell
Taco Bell is an American fast-food restaurant chain specializing in Mexican-inspired food, including tacos, burritos, quesadillas and nachos. Founded in 1962 by Glen Bell, the company operates restaurants across the United States and international markets. Taco Bell is part of Yum Brands, which also owns KFC and Pizza Hut. Taco Bell’s menu features signature products such as Doritos Locos Tacos and Mountain Dew Baja Blast.
About PepsiCo
PepsiCo is an American food and beverage company headquartered in Purchase, New York. The company’s portfolio includes beverages such as Pepsi, Mountain Dew and Gatorade, as well as snack brands such as Lay’s, Doritos and Cheetos. Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, PepsiCo sells products worldwide. The company maintains beverage and food partnerships with restaurant chains, including Taco Bell, serving its products across U.S. and international markets.
PepsiCo’s ties to Taco Bell and KFC date to the period when it owned both restaurant chains. In 1997, PepsiCo spun off its restaurant business into a separate publicly traded company that later became Yum Brands. The companies have maintained business relationships since the separation.
