Industry News | May 3, 2000

Pepsi and Tricon Renew Long-Term Alliance

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Pepsi-Cola Company and Tricon Global Restaurants, Inc. announced May 2 a multiyear renewal of the strategic beverage supply and marketing arrangement for the KFC, Pizza Hut and Taco Bell restaurant brands in the U.S.

"We are pleased to build on our partnership with Pepsi because it reflects our strategy to provide quality products, value and innovation to more than 100 million customers that visit our U.S. restaurants each week," said David C. Novak, Chief Executive Officer of Tricon. "Pepsi's powerful brands and marketing programs are important to Tricon and our franchisees."

"KFC, Pizza Hut and Taco Bell are the preeminent restaurant brands in their categories, and we are delighted that an ice-cold Pepsi will continue to complement their world-class menu items," said Vince Gennaro, President of Pepsi-Cola's Fountain Beverage Division. "Our ongoing commitment is to provide Tricon customers with the world's most innovative products and programs, while setting the highest-possible quality and service standards."

"We are pleased to have forged what we believe is an industry-leading beverage supply agreement between Pepsi and the Tricon system," said Thomas M. Cook, Taco Bell franchisee and former Chairman of the Board of the Unified FoodService Purchasing Co-op, LLC, the purchasing agent for the U.S. Tricon restaurant system. "This is another example of working together as one system and leveraging the scale of KFC, Pizza Hut and Taco Bell in the U.S."

Pepsi has supplied beverages to Pizza Hut since 1977, Taco Bell since 1979 and KFC since 1986. The new Tricon agreement extends fountain and bottle-and-can privileges for carbonated and non-carbonated refreshment beverages. Pepsi brand identification will appear on cups and merchandising materials plus advertising messages and images for all three restaurant chains.

Tricon restaurants will continue to participate in Pepsi's national beverage programs, including potential new product introductions. Pepsi ONE, for example will be available for the first time this year at Taco Bell fountain outlets. On-the-go consumers also can expect the continuance of package innovations like the 32-ounce "Cruiser Cup" and the ready availability of 20-ounce Pepsi bottles.

Tricon Global Restaurants, Inc. (NYSE: YUM), based in Louisville, Kentucky, is the world's largest restaurant owner, with almost 30,000 company-owned, franchised and licensed restaurants in over 100 countries and territories. The company has more than 20,000 system units in the U.S. Its brands—KFC, Pizza Hut and Taco Bell—are the global leaders of the chicken, pizza and Mexican-style restaurant categories, respectively.

Pepsi-Cola Company, headquartered in Purchase, N.Y., is the global beverage division of PepsiCo, Inc. Its brands in the United States include Pepsi, Diet Pepsi, Pepsi ONE, Mountain Dew, Mug, Slice, Wild Cherry Pepsi, Aquafina, All Sport Body Quencher and FruitWorks. The company also makes and markets ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.