Fans of Mountain Dew Baja Blast can breathe a sigh of relief. Taco Bell and PepsiCo are sticking together for another 11 years, extending their longstanding U.S. beverage partnership through 2036. The agreement means customers can keep enjoying Pepsi products and Taco Bell’s signature drinks at participating locations, while the companies prepare to introduce new beverages to meet changing consumer tastes. The announcement arrived just days after KFC, another major restaurant brand under Yum! Brands, revealed plans to replace Pepsi with Coca-Cola at its U.S. restaurants.

Baja Blast Is Staying on the Menu
For fans who consider Baja Blast part of the Taco Bell experience, the renewed partnership is welcome news.
Introduced through a collaboration between Taco Bell and PepsiCo, Mountain Dew Baja Blast has grown from a restaurant-exclusive beverage into a major brand. PepsiCo describes it as a billion-dollar brand, reflecting its popularity beyond the original fast-food setting. The renewed agreement keeps Baja Blast and Baja Midnight available alongside familiar options such as Pepsi, Pepsi Zero Sugar, Mountain Dew, and Starry at participating Taco Bell locations.
The companies have also experimented with limited-time creations, including pink Baja Blast and unusual treats such as Baja Blast Gelato. These experiments demonstrate how a recognizable drink can become the starting point for new products rather than remaining a standard fountain beverage.
The Partnership Goes Beyond Soft Drinks
Taco Bell and PepsiCo want customers to think beyond what comes in a fountain cup.
The companies have worked together for more than two decades, creating products that combine their respective food and beverage brands. One of their best-known collaborations is Doritos Locos Tacos, which brought Doritos-inspired shells into Taco Bell’s menu. The product is scheduled to celebrate its 15th anniversary in 2027, with new flavors planned.
That history gives both companies a foundation for future launches. Taco Bell understands its customers’ food preferences and dining habits, while PepsiCo brings beverage development experience and established drink brands. Similar partnerships can help fast-food chains create distinctive products that customers cannot easily find elsewhere.
New Drinks Could Target Younger Customers
The next chapter could bring more variety to Taco Bell’s beverage menu.
According to PepsiCo’s official announcement, the company intends to explore crafted, functional, and energy beverages. They are particularly interested in products that appeal to Gen Z consumers and create new opportunities for morning and afternoon visits.
The strategy reflects a broader shift in food service, where drinks are becoming a key part of the customer experience. Rather than limiting beverage choices to traditional sodas, chains are exploring fruit-forward refreshments, customized drinks, and occasion-specific products.
Taco Bell has already developed Refrescas, a premium beverage platform intended to offer customers more variety. Future additions could expand these options, although the companies have not announced a complete schedule of upcoming products.
Related: 6 Refreshing Fizzy Drinks to Try
Why This Deal Matters After KFC’s Switch
PepsiCo’s agreement with Taco Bell matters even more because another familiar restaurant partner is moving in a different direction.
KFC recently announced that Coca-Cola would replace PepsiCo beverages at its U.S. restaurants beginning in January 2027, with the transition expected to reach its roughly 3,700 locations by spring. The change ends a nearly four-decade relationship.
Taco Bell’s decision to renew therefore provides PepsiCo with an important long-term restaurant partnership. Both chains belong to Yum! Brands, but their beverage arrangements can differ. Taco Bell’s continued relationship also protects the availability of exclusive products closely associated with its identity.
As Nation’s Restaurant News reports, the renewed agreement will focus partly on beverage innovation, including products designed around emerging customer preferences.
What Customers Can Expect Through 2036
The biggest changes may arrive gradually rather than all at once.
The agreement covers participating Taco Bell, Taco Bell Cantina, and Live Más Cafe locations across the United States. PepsiCo will also continue as Taco Bell’s beverage partner in Canada, the United Kingdom, Ireland, and Thailand, with localized products and programs planned for those markets.
Customers can expect familiar PepsiCo drinks to remain on the menu as the companies explore new flavors and beverage categories. Availability may vary by location, and the partnership announcement does not guarantee that every experimental product will become a permanent menu item.
A Long-Term Bet on Beverage Loyalty
Taco Bell and PepsiCo are betting that familiar favorites and fresh ideas can keep customers coming back.
The extension secures their relationship through 2036, preserving popular drinks while creating room for future collaborations. Baja Blast remains the standout example of what a restaurant and beverage company can achieve when they build something distinctive together.
Whether the next big hit is another Baja Blast variation or an entirely new drink category, customers will be watching to see what appears on the menu.
Would you visit Taco Bell more often for new exclusive drinks, or is Baja Blast already your number-one reason to order a beverage there?