KFC to Switch U.S. Restaurants From PepsiCo to Coca-Cola Beverages

KFC will move its U.S. restaurants from PepsiCo to Coca-Cola beverages starting next year, according to market reports on Friday. The change is a notable win for Coca-Cola in the competitive fountain-drink business, where long-term restaurant contracts are closely watched.

Beverage supply deals can provide steady, repeat volume for the supplier, and a switch by a major quick-service chain can shift market share between the two rivals. Financial terms of the arrangement were not part of the reports.

The news came as consumer staples have been viewed as a defensive area of the market during recent volatility in technology shares.