IRVINE, CA — KFC is ditching Pepsi for Coca-Cola, but what does that mean for its sister chain Taco Bell and its signature Mountain Dew Baja Blast?
Baja Blast fans can relax. Taco Bell on Thursday announced a new agreement with PepsiCo that will keep Pepsi products, including Baja Blast, on its menus through 2036.
The decision comes as KFC, which shares parent company Yum! Brands with Taco Bell, recently ended its longstanding relationship with PepsiCo in favor of Coca-Cola, CNN reported.
PepsiCo once owned both Taco Bell and KFC. The company later spun off its restaurant businesses, which are now part of Yum! Brands. Both chains have maintained longstanding relationships with PepsiCo, but KFC is now breaking away.
Baja Blast first became available in 2004 exclusively at Taco Bell locations. Since then, it has become a billion-dollar brand with a devoted following, according to PepsiCo.
While PepsiCo has struggled with declining soft drink sales in North America.
Taco Bell's renewed agreement means customers can continue ordering Pepsi, Mountain Dew, Starry and Baja Blast at participating restaurants nationwide. The companies also plan to develop new flavors of Baja Blast, energy drinks and other specialty beverages.
Keeping Taco Bell is a major victory for PepsiCo. The Mexican-inspired fast-food chain generated about $17 billion in U.S. sales last year, compared with roughly $5 billion for KFC, CNN reported.
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