Coca-Cola and Dunkin’ Donuts are brewing a new line of bottled coffee drinks.
Dunkin’ Brands Group announced on Thursday that it will launch Dunkin’ Donuts ready-to-drink coffee beverages in U.S. stores early next year. Coke will produce and distribute the new line of beverages.
This marks Dunkin’ Donuts first foray into the canned and bottled coffee market – a market dominated by Starbucks Frappuccino beverage line, a joint venture between PepsiCo and Starbucks.
Ready-to-drink coffee has gained popularity over the past five years, with the sector now amassing $2.3 billion in annual sales according to Nielsen.
Coke’s entry into the category does not only include the venture with Dunkin’. A month ago, Coke announced that its Gold Peak brand, mostly known for iced teas and coffee products, will also launch a ready-to-drink coffee line in the first quarter of 2017.
Both brands’ products will feature real milk and sugar with a variety of flavors. The Dunkin’ line will use Arabica coffee blends, and the drinks will be sold at grocery and convenience stores as well as Dunkin’ Donut restaurants.
While neither company has fully disclosed the financial terms of this venture, Coke will pay Dunkin’ Donuts a fee, which will then be split evenly between the company itself and its qualified franchises.
Dunkin’ has partnered with Coke since 2012 to serve certain Coca-Cola beverages in its U.S. stores and in some international locations.
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