Taco Bell Stays With PepsiCo Through 2036

The renewal preserves a legacy relationship between the restaurant chain and the beverage manufacturer, which were once unified under a single corporate entity until the 1997 spin-off of Yum Brands. For Taco Bell, the partnership is essential to maintaining its signature menu lineup, most notably the exclusive Mountain Dew Baja Blast. Beyond domestic borders, the deal ensures that Pepsi products remain the standard across international markets, including the United Kingdom, Canada, Ireland, and Thailand.

While KFC’s recent shift to Coca-Cola serves as a symbolic victory for the Atlanta-based competitor, the industry landscape remains split. KFC U.S. President Catherine Tan-Gillespie noted that despite the domestic changeover, Pepsi retains a significant role within the broader Yum Brands portfolio and international territories. These supplier battles reflect a wider trend of aggressive competition for fountain drink contracts, where beverage giants leverage incentives and proprietary menu integrations to claim dominance in the fast-food sector.