Pepsi renews contract with Taco Bell after KFC Coke deal

A member of staff was spotted at a Taco Bell restaurant in London.

May James Sopa Picture | Lightrocket | Getty Images

PepsiCo and Taco Bell renew a long-running partnership through 2036, the food and beverage company said Friday.

The announcement came one week after Taco Bell’s sister chain KFC said that it would switch to Coca-cola is a US beverage supplier. While it’s unusual for large restaurant chains to switch beverage suppliers, the move is unprecedented, as Coke and Pepsi try to win contracts through perks and other inducements.

Coke’s victory over Pepsi is more symbolic, as another example of how the Atlanta-based company has beaten competitors in the soda category.

Pepsi’s relationship with Taco Bell and parent KFC Brand Yum spanning decades, back to when the beverage giant owned the restaurant chain before spinning it into a separate public company in 1997. Despite the defection of KFC in the US, Pepsi remains an important partner for Yum and the chain’s international market, KFC US President Catherine Tan-Gillespie wrote in a memo on October 15 that was taken by CNBC.

Thanks to its partnership with Pepsi, Taco Bell has long offered exclusive menu items that use Pepsi products, such as Mountain Dew Baja Blast and Doritos Locos Tacos, at its restaurants.

The renewed deal also means that Taco Bell’s international markets such as Canada, the UK, Ireland and Thailand will carry Pepsi products.

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