Dunkin’ Brands and Coca-Cola Will Cooperate to Launch Bottled Coffee Line

Dunkin Brands Group Inc(NASDAQ:DNKN) announced that it would partner with the Coca-Cola Co(NYSE:KO) to launch the bottled coffee beverages line in the U.S., making its debut on the ready-to-drink coffee market.

According to Dunkin Brands, the coffee beverages is planned to launch in early 2017, and will be made, distributed and sold by Coca-Cola. The beverages, which will include sugar and milk in various flavors, will be sold in Dunkin’ Donuts shops, supermarkets, and conveniences stores. “Some of our Dunkin’ consumers were drinking other people’s products because we weren’t there,” said Nigel Travis, the Chief Executive Officer of Dunkin’. Terms of the transaction were not disclosed and the company declined to predict the sales of coffee beverages.

“Our customers, especially younger customers, want to to have a Dunkin’ ready-to-drink iced coffee,” Travis said in an interview. “It’s one of the fastest-growing segments of the packaged-goods industry.”

This is not the first time Dunkin’ cooperated with Coca-Cola. Since 2012, two companies have worked together to serve coke beverages in Dunkin’s coffee chain both in the United States and some other countries.

Before Dunkin’ enter the ready-to-drink coffee market, it was dominated by Starbucks Corporation (NASDAQ:SBUX), which began to sold bottled coffee since 1994 in North America. Starbucks cooperated with PepsiCo, Inc.(NYSE:PEP) in a 50-50 partnership, and hold around 97% of the ready-to-drink coffee market in the US. Earlier this year, Starbucks also worked for a bigger Teavana bottled-tea push, which will be launched next year.

 

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