PepsiCo extends global beverage deal with Taco Bell through 2036

PepsiCo said it has extended its global beverage partnership with Taco Bell through 2036, renewing a relationship that ties the soft drinks and other beverages served in Taco Bell restaurants to PepsiCo brands and development.

The agreement, as described in a report published by Yahoo Finance, continues the partnership beyond the prior term and keeps PepsiCo positioned as a key beverage supplier for Taco Bell’s global footprint. The extension also indicates that the companies intend to keep working on menu-adjacent beverage ideas rather than simply extending supply terms.

Alongside the renewed partnership, the companies plan collaboration on “crafted, functional and energy drinks,” according to the same report. “Crafted” generally refers to beverages built around flavor and presentation, while “functional” typically points to drinks marketed with specific performance or wellness-related ingredients. Energy drinks are a separate, higher-growth segment for many beverage categories, and PepsiCo has increasingly positioned brands across these areas in retail channels.

For PepsiCo, the deal matters because Taco Bell is a high-visibility channel for branded beverages. Restaurant beverage partnerships can help reinforce brand recognition, drive repeat consumption, and provide a marketing platform that is different from grocery and convenience retail. For Taco Bell, aligning with a large beverage supplier reduces procurement complexity while supporting menu innovation through a partner that can scale production and distribution.

The extension also reflects how beverage companies and large quick-service restaurants often treat drinks as a product category in their own right. In practice, such partnerships can cover everything from day-to-day beverage supply to limited-time offerings and coordinated brand campaigns, depending on the contract terms.

While the report indicates the companies will collaborate on crafted, functional, and energy drinks through the end of 2036, it does not lay out additional contractual details such as financial terms, the specific brands included, or whether the agreement covers new store rollouts in particular regions. It also does not specify whether the collaboration includes custom beverage formulations for Taco Bell menu items or only leverages existing PepsiCo products.

PepsiCo’s investor narrative for beverage partnerships typically centers on brand building and efficient distribution rather than disclosing granular economics publicly. As a result, market watchers will likely focus next on whether the extension becomes visible to consumers through new Taco Bell beverage launches tied to PepsiCo brands, and whether any product announcements explicitly reference the 2036 term.