€144m lawsuit filed against PepsiCo over Famagusta factory

Greek Cypriot companies CyproFruta and Cyprus Farming Ltd are suing PepsiCo and others for €140 million, claiming unauthorized use of their factory in Famagusta since 1981. The lawsuit, filed in Nicosia district court, seeks compensation for lost profits and rent. PepsiCo's global headquarters and its Turkish subsidiary are among the defendants.

PepsiCo extended its US soda supply deal with Taco Bell to 2036, securing a major sales channel. Meanwhile, KFC will switch to Coca-Cola for its US fountain business. The moves suggest a rebalancing of partnerships within Yum Brands. PepsiCo faces margin pressure in North America, and the Taco Bell deal provides predictable US demand.

PepsiCo (PEP) extended its U.S. beverage partnership with Taco Bell for 11 years, through 2036, securing a key customer after losing KFC to Coca-Cola (KO). The deal covers PepsiCo's drinks in Taco Bell locations and focuses on developing new beverages for younger consumers. PepsiCo's North American beverage volume fell 2% last quarter, highlighting the importance of defending its restaurant business. Shares of PEP, KO, and YUM (Taco Bell's parent) rose on the news.

PepsiCo (PEP) shares rose 2.5% after extending its U.S. fountain partnership with Taco Bell to 2036, securing a key revenue stream. The deal covers 8,200+ locations and focuses on product innovation. This follows KFC's switch to Coca-Cola (KO) for its U.S. locations. PepsiCo aims to protect its foodservice channel and defend against KO's market share gains.

KFC switched from PepsiCo to Coca-Cola, while Taco Bell extended its partnership with PepsiCo for a decade. PepsiCo's North American beverage unit reported a 2% decline. Taco Bell aims to generate $5B in beverage revenue by 2030, with Baja Blast as a key product. Both companies plan to collaborate on new beverages and foods until 2036.

KFC will replace Pepsi with Coca-Cola products at its 3,700 U.S. restaurants starting in January 2027, ending a nearly 40-year partnership. The switch is part of KFC's broader modernization effort, according to KFC U.S. President Catherine Tan-Gillespie. Coca-Cola aims to enhance customer experience and drive growth, while PepsiCo will retain its international beverage partnership with KFC.