Dunkin' Donuts versus Starbucks
The coffee chain is launching a line of ready-to-drink coffee beverages to be available in grocery and other stores. Chances are that a war will break out between Coca Cola and Pepsi Cola, but it will be about coffee this time. Just like Pepsi Co. has a joint venture with Starbucks, Coca-Cola will have one with Dunkin’ Brands Group.
Even though the fast-growing canned and bottled coffee market seemed long to be claimed by Starbucks in collaboration with Pepsi Co., things seem to change soon since Dunkin’ Brands Group and Coca-Cola have announced a bottled coffee in US grocery stores and convenience stores from 2017 on. This could be seen as a direct shot at rival Starbucks by Dunkin' and a direct shot to Pesi by Coca-Cola.
Ovbviously there’s more reason than just competition and rivalry for Dunkin’ Brands Group and Coca-Cola to make this move. The most important reason is probably the potential of the market. Dunkin’ Brands Group CEO explains: “This is a fast-growing segment of the coffee business, and it’s growing about 8 percent per year. We saw white space, which means very little competition, and we saw that as a real opportunity." The Chief Executive thinks this can be a major game changer for Dunkin’ because it will sell more in alternative locations, but it will also improve building the brand and increase the store traffic. "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”.