PepsiCo Was Just Dealt Another Blow by Coca-Cola

KFC's decision to swap Pepsi for Coca-Cola products across its 4,000 U.S. locations hands KO a notable win and costs PEP roughly $50 million in revenue. The move is the third major account PEP has lost this year, following similar switches by Marriott and Costco.

YUM, KFC's parent, is the party making the switch, though the source does not detail financial terms on its side. The $50 million hit is modest in isolation, but the pattern is the story: three marquee food-service and retail customers have moved to KO in a single year.

The source also flags structural pressure on PEP from changing consumer habits and GLP-1 drug adoption. According to the article, those forces disproportionately affect PEP's snack and full-sugar beverage portfolio, while KO's lineup leans more on diversified low- and no-calorie offerings. That is the article's framing, and it suggests the account losses may be compounding an already difficult demand backdrop for PEP rather than representing isolated events. This is interpretation: if more large customers follow, the revenue erosion could outpace what a single $50 million figure implies.

For now, the evidence supports a relative-strength narrative favoring KO over PEP, driven by customer wins and a portfolio better aligned with the consumption shifts the article describes.