Taco Bell Extends PepsiCo Beverage Deal Through 2036 Amid Coca-Cola Losses
Taco Bell agreed to extend its beverage partnership with PepsiCo for 11 years through 2036, a win after KFC and Marriott moved to Coca-Cola, per Barron's.
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what happened
Taco Bell has agreed to keep PepsiCo as its beverage supplier, extending the partnership by another 11 years. Pepsi and Mountain Dew will remain available at participating U.S. locations through 2036, according to Barron's.
The renewal comes after a rough period for PepsiCo in the restaurant channel. Last week KFC said it will swap PepsiCo drinks for Coca-Cola at around 3,600 U.S. outlets from January, closing a partnership of nearly four decades. Marriott made a comparable move in July after more than thirty years with the company.
PepsiCo says it is putting money into technology and developing exclusive drinks to help restaurant partners draw customers. Its sales to restaurants and other venues grew at a mid-single-digit pace in the third quarter of 2025, but North American beverage volumes fell 2% in the latest quarter.
why it matters
For PepsiCo, the renewal keeps a important account and halts a run of foodservice losses to Coca-Cola. Weak beverage demand in North America remains the bigger question for investors.
market impact
PepsiCo: keeping Taco Bell supports the foodservice channel, while weak North American beverage demand remains the key risk
tags
instruments
sources
- Pepsi Tastes a Victory — Barrons.com, 23 October 2026 at 22:26 UTC
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