The soda fountain at your local KFC is about to look very different, and Mountain Dew Sweet Lightning may not make it through the change. KFC is dropping PepsiCo as its U.S. drink supplier and moving to Coca-Cola, ending a partnership that goes back four decades.
Coca-Cola says the rollout starts in January 2027, with its drinks expected in all of KFC’s roughly 3,600 U.S. restaurants by spring. KFC U.S. President Catherine Tan-Gillespie told franchisees and employees the chain expects to finish by the end of the first quarter, according to a memo obtained by CNBC. Financial terms weren’t disclosed.
Why KFC Is Walking Away From Pepsi
This isn’t a small shuffle. PepsiCo bought KFC in 1986, back when the chicken chain was Coke’s second-largest fountain account behind only McDonald’s. PepsiCo spun off its restaurants in 1997, but KFC, Pizza Hut, and Taco Bell kept pouring Pepsi as part of Yum Brands.
Tan-Gillespie pitched the switch as part of a bigger turnaround. “This decision is a critical step in the Kentucky Fried Comeback,” she wrote in the memo. “A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us.”
KFC has been losing U.S. diners to Chick-fil-A and Popeyes, and drinks have become one of the biggest draws in fast food. McDonald’s and Taco Bell have both leaned into refreshers and “dirty soda,” and KFC has been testing iced coffees and shakes at Open House, its innovation restaurant in McKinney, Texas.
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PepsiCo isn’t leaving Yum Brands entirely. A PepsiCo spokesperson told Reuters the two companies just renewed their agreements for Taco Bell and KFC’s international stores, with Taco Bell signing on for 10 years, so Baja Blast isn’t going anywhere. Tan-Gillespie also said Pepsi remains an important partner for KFC’s parent company and its markets overseas.
Losing a U.S. chain this size still stings. The same report notes that PepsiCo is in the middle of a North American turnaround, and CEO Ramon Laguarta said earlier this month that growth and margin recovery were taking longer than planned.
What Happens to Mountain Dew Sweet Lightning?
The bigger question for KFC regulars is the soda that only exists there. Mountain Dew Sweet Lightning launched in 2019 as the first beverage made exclusively for KFC. It’s a peach and honey Dew built to pair with Original Recipe chicken. The drink reached restaurants nationwide by July 1 that year and was billed as a “permanent pour.”
It was a big swing for Mountain Dew, too. Sweet Lightning was only the second time the brand had teamed with a fast-food chain on an exclusive flavor, following Baja Blast at Taco Bell. “With the addition of Sweet Lightning, we now have a drink that is as unique to KFC as the Colonel’s secret blend of 11 herbs and spices,” KFC U.S. chief marketing officer Andrea Zahumensky said at the time.
Mountain Dew is a PepsiCo brand, and Sweet Lightning is a PepsiCo trademark. So once Coke takes over the fountains, there’s no clear path for a Pepsi-owned soda to stay on the menu. Neither Coca-Cola’s announcement nor the KFC memo reported by CNBC mentions Sweet Lightning, and PepsiCo hasn’t said whether it plans to sell the flavor anywhere else.
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KFC gave the drink a refresh just last year, rolling out Sweet Lightning Peaches & Cream in June 2025 with an optional vanilla cream swirl. If the switch stays on schedule, fans have until roughly spring 2027 to get their fill.
Coke Keeps Winning Over Pepsi Partners
Big chains rarely change soda suppliers, but it does happen. Pepsi pulled Subway, the largest U.S. restaurant chain by number of locations, away from Coke in 2024. Coke has answered by luring Culver’s, Arby’s, and Panda Express away from Pepsi in recent years, and now it adds KFC.
Coca-Cola is selling itself as a partner for new flavors. “By pairing KFC’s iconic food and flavors with the breadth of Coca-Cola’s beverage portfolio and innovation capabilities, we have an incredible opportunity to make every visit more refreshing,” said Dagmar Boggs, Coca-Cola’s president of foodservice and on-premise for North America. Tan-Gillespie added that the deal “is about more than what’s in the cup.”
Will you miss Mountain Dew Sweet Lightning, or are you ready for Coke at the KFC fountain? Sound off and let us know!
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