PepsiCo and Taco Bell have extended their U.S. beverage supply agreement for another 11 years, locking in PepsiCo as the exclusive beverage partner across participating Taco Bell, Taco Bell Cantina, and Live Más Cafe locations through 2036. The deal also adds international coverage in Canada, the United Kingdom, Ireland, and Thailand — a meaningful expansion of a partnership that has shaped foodservice beverage strategy for more than two decades.
What Operators Get
For restaurant operators and the equipment specifiers who build out their beverage programs, the renewal signals continuity in fountain and dispensing infrastructure built around PepsiCo's portfolio: Pepsi, Pepsi Zero Sugar, Mountain Dew, and Starry, alongside Taco Bell exclusives Mountain Dew Baja Blast and Mountain Dew Baja Midnight. Long-term supply agreements of this scale typically anchor beverage dispensing equipment decisions — from carbonated beverage towers to post-mix systems — for the life of the contract, giving operators and their consultants a stable platform for capital planning.
Anne Fink, President of PepsiCo Global Away from Home, pointed to the collaborative development model as central to the partnership's value: "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."
Beverage Innovation Pipeline
Beyond the core fountain lineup, the renewed agreement targets emerging beverage categories — crafted beverages, functional drinks, and energy offerings — with a stated focus on Gen Z consumers and new morning and afternoon dayparts. PepsiCo and Taco Bell have already co-developed Refrescas, described as a premium beverage platform aimed at elevated pairing experiences. New energy beverage formats are also in the pipeline, a category that is reshaping back-of-bar equipment specs at QSR chains as operators add dedicated cold-brew, energy, and frozen beverage stations alongside traditional post-mix dispensers.
DORITOS Locos Tacos — another product of the PepsiCo-Taco Bell collaboration — will mark its 15th anniversary in 2027, with new flavor extensions planned. Mountain Dew Baja Blast has grown into a billion-dollar brand in its own right, a trajectory that underscores how exclusive foodservice beverage programs can drive significant volume through a chain's dispensing infrastructure.
For the international markets covered by the renewal, PepsiCo and Taco Bell say they will pursue localized innovation and market-specific programs, an approach that typically requires beverage equipment configurations tailored to local utility standards and portion preferences — a consideration familiar to any dealer or consultant working cross-border foodservice rollouts.
The scale of the deal reflects broader trends in QSR beverage program strategy, where chains are increasingly using exclusive fountain partnerships to differentiate the in-restaurant experience against off-premise and retail competition. Long-term agreements also give equipment dealers and distributors clearer visibility into dispenser refresh cycles and co-funded installation programs tied to contract milestones. Operators evaluating beverage dispensing and cold-chain infrastructure as part of new-unit builds or remodels would do well to track how Taco Bell's expanded beverage menu — particularly energy and functional formats — influences equipment footprint requirements at the counter and drive-through.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
