Taco Bell and PepsiCo Extend Beverage Deal Through 2036

PepsiCo will continue supplying beverages to participating Taco Bell restaurants across the United States through 2036 under an 11-year partnership extension announced Thursday, October 22. The agreement covers Taco Bell, Taco Bell Cantina, and Live Más Café locations, preserving the availability of Pepsi products, including Mountain Dew Baja Blast.

According to PepsiCo, the renewed deal maintains a longstanding commercial relationship that has produced popular menu offerings and beverage innovations. Mountain Dew Baja Blast, which emerged from the collaboration and has grown into a billion-dollar brand, will remain available alongside Pepsi, Pepsi Zero Sugar, Mountain Dew, Starry, and Baja Midnight.

The agreement also continues a partnership that has extended beyond beverages into food products. Doritos Locos Tacos, another result of the collaboration, will mark its 15th anniversary in 2027, and PepsiCo said additional flavors are planned.

Anne Fink, PepsiCo's Global Away from Home president, said the companies' collaboration has helped develop products that resonate with consumers.

"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, PepsiCo Global Away from Home president.

Fink highlighted the range of products developed through the relationship, pointing to the combination of Taco Bell's cultural connections and PepsiCo's consumer research, culinary capabilities, and beverage expertise.

"Together, we have co-created products consumers love, from the iconic Mountain Dew Baja Blast to DORITOS Locos Tacos," Fink said. "What makes this partnership special is how we bring together Taco Bell’s connection to culture with PepsiCo’s consumer insights, culinary capabilities and beverage expertise to create what’s next. We’re excited about what we can build together over the next 11 years."

The renewed agreement comes as another major restaurant chain owned by Yum! Brands prepares to change beverage suppliers in the United States. KFC announced that it would replace Pepsi products with Coca-Cola beverages, ending a relationship that lasted roughly four decades.

According to the announcement, KFC will begin transitioning to Coca-Cola products in January 2027. The new beverages are expected to reach approximately 3,700 U.S. restaurants by spring 2027.

Taco Bell President Meg Farren also welcomed the extended agreement, emphasizing the companies' established relationship and their shared business objectives.

"PepsiCo has been a trusted partner for over two decades, and we look forward to continuing to work hand-in-hand to drive long-term growth for the Taco Bell brand," said Meg Farren, Taco Bell president.