US: Coca-Cola, Dunkin’ Donuts Teams Up To Serve Bottled Coffee

Dunkin’ Donuts has joined forces with Coca-Cola Co to enter the ready-to-drink coffee market, in a move that will see the two launch a line of bottled coffee beverages in the US in early 2017.

The iced coffees will be manufactured, distributed and sold by Coca-Cola, and will be available at supermarkets, convenience stores and in Dunkin’ Donuts shops.  Coke will pay a fee to Dunkin’ that will be split between the company and franchisees that operate nearly all of its shops.  No specific terms of the deal were announced.

The move is expected to attract customers of both brands, and offers both companies new leverage in their fight with their closest respective rivals – PepsiCo and Starbucks.

The move comes as retail sales of ready-to-drink coffee in the US jumped up 14% to $2.54bn in 2015 – the fourth straight year of at least 10% growth (Euromonitor).