Taco Bell has secured an 11-year extension of its PepsiCo partnership, preserving a major beverage alliance across its US business and selected international markets as sister brand KFC prepares to switch to Coca-Cola in the US.
Taco Bell has renewed its longstanding partnership with PepsiCo through 2036, securing the beverage company’s position across participating restaurants in the US and selected international markets. The agreement reinforces a relationship built around signature products such as Mountain Dew Baja Blast and Doritos Locos Tacos, while giving both companies a long-term platform for product innovation.
The renewal comes as KFC, another brand within Yum! Brands, moves its US beverage business from PepsiCo to Coca-Cola. The contrasting deals highlight how major restaurant chains can maintain separate beverage arrangements despite operating under the same corporate parent.
Under the renewed agreement, PepsiCo will continue as the beverage partner for participating Taco Bell, Taco Bell Cantina and Live Más Cafe locations in the US. The partnership also covers Canada, the UK, Ireland and Thailand, with plans to develop new products and market-specific initiatives.
“Some of PepsiCo’s best foodservice innovations have come from partnerships that challenge us to think differently, and Taco Bell has always brought that energy,” said Anne Fink, President of PepsiCo Global Away from Home.
The companies intend to build on established collaborations, including Mountain Dew Baja Blast and Doritos Locos Tacos, while exploring new beverage concepts designed to attract consumers across more dayparts.
9,030 Restaurants Strengthen PepsiCo’s Reach
The agreement gives PepsiCo continued access to Taco Bell’s substantial franchise-led network. Yum! Brands reported 9,030 Taco Bell restaurants worldwide at the end of 2025, operating across 38 countries and territories. Approximately 93% of the system was franchised.
That scale makes the partnership strategically significant beyond beverage supply. Product launches and promotional campaigns can be deployed through a large restaurant network, subject to local agreements and participating outlets, while franchisees benefit from continuity in a core part of the customer offering.
Taco Bell’s international expansion also gives the partnership scope to develop market-specific products and promotions as the brand enters new territories and grows its presence outside the US.
Baja Blast Remains Central to the Deal
Mountain Dew Baja Blast remains one of the partnership’s signature products. Developed for Taco Bell, the beverage has grown into a major brand in its own right, supported by new flavours, limited-time releases and collaborations.
The companies also have a shared track record with Doritos Locos Tacos, which combines Taco Bell’s menu with PepsiCo’s Doritos brand. The renewed agreement provides a framework for further innovation, including beverage offerings tailored to evolving consumer preferences.
For PepsiCo, the extension protects a major foodservice relationship at a time of intensifying competition in the beverage market. For Taco Bell, it preserves an established innovation partner as the chain continues to expand its franchise footprint.
KFC’s move to Coca-Cola does not end PepsiCo’s relationship with Yum! Brands. Instead, the Taco Bell renewal demonstrates that beverage partnerships can be structured separately by brand and market, allowing different restaurant businesses within the same group to pursue distinct commercial arrangements.
