KFC ditches Pepsi for Coke in New Zealand

[Stephane Dumas]

I spotted this news from November 2015 who mentionned then KFC(Kentucky Fried Chicken) restaurants in New Zealand ditched Pepsi for Coke
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11540985
https://www.reddit.com/r/newzealand/comments/3rpbkp/kfc_ditches_pepsi_for_coke/

And it seems to be the 2nd country where it happened, Yum! did it in February 2012 for its KFC and Pizza Hut restaurants in Romania.
http://www.romania-insider.com/yum-switches-to-coca-cola-from-rival-pepsi-for-its-kfc-pizza-hut-restaurants-in-romania/49453/

Is it the beginning of an upcoming trend?

[Thing 342]

That's somewhat surprising, considering that KFC and Pizza Hut used to be under the PepsiCo umbrella until somewhat recently.

Nexus 7

[SP Cook]

Pepsi owned KFC from 86-97, its other two restaurant chains (Taco Bell and Pizza Hut) from the mid 70s.   So it will soon be 20 years since the spin off. 

Outside North America, excepting a few Latin and Arab markets, Pepsi is a much weaker competitor, and is generally thought of as a cheap immitation and generally thought to pass its "inferiority" to places that sell it.  Even back during the 80s, when Burger King went to Pepsi for a few years, it was only in the USA and Canada, as it knew the brand would not sell well elsewhere.

[US71]

That's somewhat surprising, considering that KFC and Pizza Hut used to be under the PepsiCo umbrella until somewhat recently.

Nexus 7

How it's YUM brands, but most still seem to offer Pepsi products. They also have Taco Bell, but also had A&W and Long John Silvers brands until they were jettisoned.

[Duke87]

I wouldn't assume that it has anything to do with perception of the brand.

Remember that ultimately the name of the game is profit. Whenever a business switches from selling one brand of something to another, the most obvious reason is simply because the supplier of the latter brand offered the owner a better deal. If you owned a restaurant that had been serving Pepsi for years, and Coke offered to sell you their soda for 5 cents less per liter, you'd make the same switch.

[SP Cook]

Except that in North America, KO has always charged more, and still has 70% of the fountain market, and it charges even more in other markets.  Fact is, PEP costs you customers outside North America.

[GCrites]

The hedge fund or whatever that owns Frisch's switched to Pepsi because it's cheaper.