Taco Bell Chooses Pepsico For 11 More Years As Both Companies Prepare A New Wave Of Beverage Innovation

PepsiCo and Taco Bell have renewed their longstanding partnership in the United States for another 11 years, extending their collaboration through 2036. The agreement will preserve iconic beverages such as Mountain Dew Baja Blast while accelerating innovation across functional drinks, energy beverages, and new consumer experiences.

The announcement, made on October 22, 2026, reinforces PepsiCo’s position as a major beverage supplier in the fast-food industry. The renewed agreement covers participating Taco Bell restaurants, Taco Bell Cantina locations, and Live Más Cafe establishments across the United States.

Beyond the domestic market, PepsiCo will continue serving as Taco Bell’s beverage partner in Canada, the United Kingdom, Ireland, and Thailand.

What Does the PepsiCo and Taco Bell Partnership Include?

Under the renewed agreement, Taco Bell customers will continue enjoying PepsiCo beverages, including Pepsi, Pepsi Zero Sugar, Mountain Dew, Starry, Mountain Dew Baja Blast, and Mountain Dew Baja Midnight.

The companies have collaborated for more than two decades, creating successful products that combine PepsiCo’s beverage and snack expertise with Taco Bell’s restaurant business.

One of their most recognizable innovations is Mountain Dew Baja Blast, which has become a billion-dollar brand.

Other collaborations include Baja Blast Gelato, Baja Blast Pie, and Doritos Locos Tacos, which will celebrate its 15th anniversary in 2027 with new flavors planned.

PepsiCo Targets Gen Z With New Beverage Innovation

The renewed partnership will focus on emerging consumer trends, particularly crafted beverages, functional drinks, and energy products.

Both companies plan to develop new offerings targeting Generation Z consumers while expanding beverage consumption opportunities during morning and afternoon hours.

Their innovation strategy also includes Refrescas, a premium beverage platform designed to create distinctive food-and-drink combinations.

Anne Fink, President of PepsiCo Global Away from Home, emphasized the importance of combining Taco Bell’s cultural relevance with PepsiCo’s consumer insights and beverage capabilities.

Meanwhile, Meg Farren, Taco Bell’s President of North America, highlighted the partnership’s role in supporting long-term growth and responding to evolving consumer preferences.

Why Is This Agreement Important for PepsiCo?

The renewal strengthens PepsiCo’s presence in the competitive U.S. quick-service restaurant market, where beverage partnerships provide distribution opportunities and platforms for product innovation.

For Taco Bell, the agreement ensures continuity for popular beverages while supporting new menu development.

PepsiCo generated nearly $94 billion in net revenue in 2025, supported by brands including Pepsi, Mountain Dew, Gatorade, Lay’s, and Doritos.

The 11-year agreement demonstrates how beverage manufacturers and restaurant chains are increasingly using strategic partnerships to strengthen brand loyalty, attract younger consumers, and create new growth opportunities.