By Jordan Valinsky, CNN
New York (CNN) — KFC dumped PepsiCo last week, but its sister chain Taco Bell announced Thursday it’s keeping the Mountain Dew Baja Blast maker on for another decade.
The Taco Bell deal is a much-needed win for PepsiCo, whose business has had rough few weeks. Not only did it lose its longstanding contract with KFC to rival Coca-Cola, but its drink business in North America is also in a slump.
The company reported a 2% decline for its North America beverage unit during its most recent quarter, and its CEO Ramon Laguarta bluntly said on its earnings call that it’s “not competing well in soft drinks,” including newly acquired Poppi brand.
Losing the KFC contract is a blow for PepsiCo, considering it once owned the fried chicken chain. But keeping Taco Bell is a bigger deal, since the latter has generated $17 billion in US system-wide sales last year compared to KFC’s roughly $5 billion. (Both chains are owned by Yum! Brands.)
Taco Bell and PepsiCo said in a statement that the two will continue collaborating on new beverages and foods until 2036, including upcoming new flavors for their Doritos Locos Tacos. It also noted that the Baja Blast drink has become a $1 billion brand.
As food prices rise and consumers look to cut back, the beverage category is a key growth area for Taco Bell and other fast food chains.
Taco Bell is aggressively expanding its beverage sales aiming to generate $5 billion in revenue by 2030. Last year, the chain released a lineup of “Refrescas” drinks aimed at attracting consumers searching for a beverage between meals. Further expansion will come from developing new Baja Blast options with Pepsi, including a limited-time pink lemonade with singer Olivia Rodrigo.
“Taco Bell’s Baja Blast lineup has often been a key differentiator for the brand, and leaning into product exclusives can help drive visitation to quick service restaurant chains,” Elizabeth Lafontaine, director of research at location analytics firm Placer.ai, previously told CNN.
“Especially as the industry faces steeper competition and consumers who are on the hunt for more value from fast food offerings,” she added.
Taco Bell and PepsiCo said in a statement that they plan to stay ahead on “emerging beverage trends across crafted, functional and energy beverages, including energy offerings designed to appeal to Gen Z consumers and unlock new morning and afternoon occasions.”
Taco Bell has been a bright spot in the fast food industry, but saw a traffic decline over the summer due toa cyclospora outbreak that was linked to lettuce served at a number of restaurants. The company will give a fuller view of the sales impact when it releases earnings next month.
The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
KFC switches to Coke. But Pepsi’s still king at Taco Bell News Channel 3-12.
Hence then, the article about kfc switches to coke but pepsi s still king at taco bell was published today ( ) and is available on News channel ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( KFC switches to Coke. But Pepsi’s still king at Taco Bell )
Also on site :
- AuraQuantic positioned as a Leader in the SPARK Matrix™: Intelligent Process Orchestration (IPO), 2026 by QKS Group
- Bournemouth vs AC Milan: Kick-Off Time, TV Channels, and Live Streaming
- Payment Processor Nears Buy Point Amid Accelerating Earnings Growth