KFC switches to Coke. But Pepsi’s still king at Taco Bell

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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.

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肯德基上周终止了与百事可乐的合作关系，但其姊妹连锁店塔可钟周四宣布，将继续与百事可乐合作十年，百事可乐是激浪 Baja Blast 饮料的生产商。

对于近几周来业绩不佳的百事公司来说，与塔可钟的合作无疑是一场急需的胜利。该公司不仅失去了与肯德基的长期合作关系（转而由竞争对手可口可乐接手），而且其在北美的饮料业务也陷入低迷。

该公司报告称，其北美饮料部门在最近一个季度的业绩下滑了 2%，其首席执行官 Ramon Laguarta 在财报电话会议上直言不讳地表示，该公司在软饮料领域“竞争并不激烈”，包括新收购的 Poppi 品牌。

失去肯德基的合同对百事公司来说无疑是一次打击，毕竟它曾经拥有这家炸鸡连锁店。但保住塔可钟的合同意义更大，因为塔可钟去年在美国的系统销售额高达170亿美元，而肯德基的销售额约为50亿美元。（这两家连锁店都隶属于百胜餐饮集团。）

塔可钟和百事公司在一份声明中表示，双方将继续合作开发新的饮料和食品，直至2036年，其中包括即将推出的Doritos Locos Tacos新口味。声明还指出，Baja Blast饮料已成为一个价值10亿美元的品牌。

随着食品价格上涨，消费者希望减少开支，饮料品类成为塔可钟和其他快餐连锁店的关键增长领域。

塔可钟正积极拓展饮料销售，目标是在2030年前实现50亿美元的营收。去年，该连锁店推出了一系列名为“Refrescas”的饮品，旨在吸引那些在两餐之间想要喝饮料的消费者。未来，塔可钟还将与百事可乐合作开发新的Baja Blast系列产品，其中包括一款与歌手奥利维亚·罗德里戈联名推出的限时粉红柠檬水，以此进一步扩大其饮料销售。

“塔可钟的 Baja Blast 系列产品一直是该品牌的一大特色，而推出独家产品有助于吸引顾客光顾快餐连锁店，”位置分析公司 Placer.ai 的研究主管 Elizabeth Lafontaine 此前告诉 CNN。

她补充说：“尤其是在快餐行业面临日益激烈的竞争，以及消费者寻求从快餐产品中获得更高价值的情况下。”

塔可钟和百事公司在一份声明中表示，他们计划在“新兴饮料趋势方面保持领先地位，涵盖精酿饮料、功能性饮料和能量饮料，包括旨在吸引 Z 世代消费者并开拓新的早晨和下午时段的能量饮料产品”。

塔可钟一直是快餐行业的亮点，但由于多家餐厅供应的生菜引发环孢子虫病疫情，其夏季客流量有所下降。该公司将在下个月发布财报时提供更全面的销售影响分析。