PepsiCo ($PEP) to Discontinue KFC-Exclusive Mountain Dew Sweet Lightning as Chain Switches to Coca-Cola ($KO)

PepsiCo ($PEP) will discontinue Mountain Dew Sweet Lightning, an exclusive fountain soda flavor served at KFC restaurants since 2019, with distribution concluding on December 31, 2026. The move follows Yum! Brands subsidiary KFC ($YUM) announcing on October 15 that it will terminate its nearly 40-year beverage partnership with PepsiCo to transition U.S. restaurant beverage fountains to Coca-Cola ($KO).
The supplier changeover begins in January 2027 and is projected to reach all 3,600 domestic KFC locations by spring 2027 as part of the restaurant chain's broader brand modernization push. Sweet Lightning—a peach-and-honey-flavored beverage developed specifically to pair with fried chicken—has never been distributed through retail consumer packaged goods channels, though PepsiCo management indicated it is evaluating future retail distribution models or alternate formats once the restaurant exclusivity ends.
While the loss of KFC U.S. represents a notable domestic fountain contract displacement for PepsiCo, the beverage giant maintains long-term supply agreements with Yum! Brands sister chain Taco Bell—preserving Mountain Dew Baja Blast—alongside international KFC operations.