Dunkin’ Donuts (NASDAQ:DNKN) and Coca-Cola (NYSE:KO) have teamed up to launch bottled coffee drinks.
The market of bottled iced coffee drinks has been on the rise and these companies are hoping that creating beverages with Dunkin’ coffee may prove to be key in helping both companies compete against their fiercest rivals.
Dunkin’ Donuts spokespeople believe that the move will help improve the company’s business, as research has shown that trying bottled coffee beverages is often followed by consumers going to the location where the coffee was brewed, and trying a fresh cup of where that flavor came from.
“We’re the No. 1 seller of iced coffee. This is in our wheelhouse,” Dunkin’ Brands CEO Nigel Travis said. “We saw this was a category that was growing at an incredible rate.”
Bottled coffee has been growing steadily in the U.S., surging 8% last year and amounting to $2.3 billion in sales over the course of the year. Expect sales to grow another 8% by the time this year is over.
“The trouble is when people try things, they might like it and become loyal to that brand,” Nigel added. “So, we want the loyalty to be entirely to Dunkin’.
Bottled coffee has been around since at least 1996, when Starbucks Corporation (NASDAQ:SBUX) launched its first bottled frappuccino. The Seattle-based chain is leading the market in that category
DNKN stock is up 0.5% Thursday, while KO shares slipped 0.2%.
