Taco Bell makes decision on soft drink provider as sister chain KFC switches to Coca-Cola

KFC may be ditching Pepsi for Coca-Cola, but Taco Bell said it’s sticking with Pepsi. (Source: CNN via CNN Newsource)
Published: Oct. 22, 2026 at 3:09 PM CDT|Updated: 2 hours ago

(CNN) - KFC may be ditching Pepsi for Coca-Cola, but Taco Bell said it’s sticking with Pepsi.

The fast-food chain announced Thursday it’s extending its partnership with PepsiCo through 2036.

The deal is a big win for PepsiCo.

Not only did the company lose its longstanding contract with KFC to rival Coca-Cola, but it recently reported slumping North American beverage sales.

Taco Bell and PepsiCo plan to develop new drinks and Doritos Locos Tacos flavors.

Those include more options for Mountain Dew Baja Blast, which has become a billion-dollar brand.

Taco Bell said it’s also aiming to generate $5 billion in beverage revenue by 2030.