KFC ditches Pepsi for Coke

Restaurant chain KFC will soon no longer be selling Pepsi soft drinks, with Coca-Cola taking over as its official drinks supplier.

Restaurant Brands New Zealand, the country's largest fast food operator, confirmed the exclusive deal with Coca-Cola will begin in mid-January next year.

The change in beverage supplier is part of KFC's transformation programme that started last year, and includes changes in marketing and longer opening hours. Coca-Cola will soon also be taking over at Restaurant Brands' Pizza Hut stores.

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Multiple KFC outlets throughout the country are currently undergoing refurbishment, with Napier's newly upgraded restaurant among the first to supply Coca-Cola drinks.

Greymouth and Palmerston North restaurants will also switch to Coca-Cola while undergoing refurbishment.

The company declined to comment on the reason why the suppliers are changing.

Restaurant Brands New Zealand, boosted first-half profit 17 per cent on increased sales of chicken at its KFC restaurants.

The KFC brand, which makes up more than two thirds of the company's revenue, increased earnings 18 per cent to $30.9 million.

The shares last traded at $4.16 and have gained 20 per cent over the past 12 months.

Pepsi will continue as the main drinks supplier in all its other stores until January next year.