Dunkin' Donuts ties up with Coca-Cola, to bottle and market cold coffee

Dunkin’ Brands Group revealed that they will partner with Coca-Cola to launch a line of cold-brew coffee beverages in the United States.
This will be the group’s first foray into the ready-to-drink coffee market.
The donut chain operator said the beverages, set to launch in early 2017, will be manufactured, distributed and sold by Coca-Cola.
“We are delighted to be working with The Coca-Cola Company, a world-class partner that will provide us with world-class consumer access, by bringing ready-to-drink Dunkin’ Donuts coffee to the refrigerator cases of grocery, convenience stores and mass merchandisers, as well as inside Dunkin’ Donuts restaurants, across the United States,” said Dunkin’ Brands Chairman and CEO Nigel Travis, in a press release.
“This new product introduction will increase consumption of Dunkin’ Donuts coffee and increase our brand relevance with existing and new consumers, including many younger customers, which we believe will in turn, drive incremental visits to our restaurants,” he added.
Financial terms of the agreement were not disclosed. The Coca-Cola Company will produce Dunkin’ Donuts ready-to-drink coffee beverages according to Dunkin’ Donuts specifications, including using high-quality Arabica coffee blends. Coca-Cola’s extensive network of bottling partners will sell and distribute Dunkin’ Donuts ready-to-drink beverages, which will include real milk and sugar in a variety of flavors.
Dunkin’ Donuts also announced that it would equally share with qualified US Dunkin’ Donuts franchisees its net profits from the sales of ready-to-drink coffee through outlets outside of its restaurants.
“We are an almost 100 per cent franchised company, and our mission is to drive our brand relevance and to drive the profitability of our Dunkin’ Donuts franchisees,” Travis said, adding, “Our research has clearly shown that ready-to-drink coffee consumption is a separate occasion from the purchase of our restaurant-brewed iced coffee. That same research also shows that having a ready-to-drink coffee product builds brand loyalty. We strongly believe that this product launch is good for customers and for our franchisees.”
Dunkin’ Donuts has partnered with The Coca-Cola Company since 2012 to serve Coca-Cola products, including soft drinks, juices, enhanced waters and energy drinks, at Dunkin’ Donuts restaurants in the United States and select markets around the globe.