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PepsiCo and Taco Bell have renewed their commercial partnership in the United States and selected international markets, signing an 11-year extension that secures their collaborative alliance through 2036.
The renewed agreement covers participating Taco Bell restaurants, Taco Bell Cantina locations, and the chain’s beverage-led Live Más Café footprint nationwide. Outside the United States, PepsiCo will continue as Taco Bell's primary beverage partner across Canada, the United Kingdom, Ireland, and Thailand, aligning cross-border supply chains and menu development programmes.
The long-term commitment solidifies one of the quick-service restaurant (QSR) sector's most enduring commercial partnerships, extending a multi-decade collaboration that has consistently integrated beverage dispense agreements with co-branded food product development.
"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, President of PepsiCo Global Away from Home.
"Together, we have co-created products consumers love, from the iconic Mountain Dew Baja Blast to DORITOS Locos Tacos. 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."
Fountain Pouring and Co-Branded IP
Under the extended agreement, PepsiCo's carbonated and non-carbonated soft drink portfolios will remain the exclusive fountain offering across Taco Bell's domestic estate:
🥤 Core Beverage Portfolio: Full pouring rights spanning Pepsi, Pepsi Zero Sugar, Mountain Dew, and lemon-lime soda Starry.
🌊 Exclusive Beverage Platforms: Continued exclusivity for proprietary fountain offerings, including Mountain Dew Baja Blast and Mountain Dew Baja Midnight, alongside seasonal and limited-edition product variations.
🌮 Co-Branded Food Platforms: Ongoing development of the Doritos Locos Tacos line, which will mark its 15th anniversary in 2027, supported by planned flavour introductions.
The collaboration has evolved from a conventional beverage supply contract into an incubator for high-yield food and beverage intellectual property. Notably, Mountain Dew Baja Blast, originally developed specifically as an exclusive fountain pour for Taco Bell in 2004, has matured into an independent commercial platform generating more than $1 billion in retail and foodservice sales, spinning off retail packaged goods, Baja Blast Gelato, and festive limited-time offerings.
"Strong partnerships have always been critical to how Taco Bell grows and evolves," noted Meg Farren, President of Taco Bell North America. "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, create greater value across our system and find new ways to meet the evolving needs of our consumers."
Emerging Beverage Formulations
A primary strategic focus for the 11-year renewal centres on expanding daytime beverage frequency and targeting Gen Z consumers through functional, crafted, and energy drinks.
As fast-casual and quick-service operators seek to capture off-peak morning and mid-afternoon footfall, Taco Bell and PepsiCo are engineering liquid platforms to drive check sizes beyond traditional lunch and dinner hours:
Refrescas Platform: Expanding premium iced fruit-and-botanical beverages designed to create higher-margin pairing opportunities with savoury food items.
Functional and Energy Additions: Formulating functional and ready-to-drink energy offerings to compete directly against specialist drive-thru beverage chains.
Live Más Café Integration: Deploying innovative craft soda, chilled coffee, and blended concepts across the Live Más Café network, serving as a live testbed before rolling proven SKUs into standard restaurant drive-thrus nationwide.
Global Market Alignment
Beyond the domestic US estate, the agreement reaffirms PepsiCo's role as exclusive beverage supplier across four international territories:
Territories Covered: Canada, the United Kingdom, Ireland, and Thailand.
Localised Product Programmes: Joint development of market-specific beverage profiles and promotional menus tailored to local dietary preferences and regulatory frameworks.
The 11-year extension provides system stability for Taco Bell franchisees as the Yum! Brands subsidiary pursues aggressive physical restaurant expansion globally, ensuring predictable procurement pricing, joint marketing support, and continuous menu innovation through 2036.
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