Dunkin Donuts and Coke Join Forces, Fight Starbucks

By Maddie Migis

Luckily, coffee and coke isn’t a combo you’ll see on the market anytime soon. However, coffee chain Dunkin’ Donuts is partnering with Coca-Cola to try and make their entry into the packaged coffee market. Recently, Dunkin’ Donuts has suffered from a drop in in-store sales. The two companies will pair together to try to slow Starbucks’ bottled iced coffee roll. Starbucks has made great efforts to promote their new line of iced coffee, and they plan to expand upon their products. In 2017, Starbucks will begin to offer iced bottled Teavana tea options, for which they have partnered with Anheuser-Busch to bottle (Patton).

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Dunkin Donuts pans to enter the bottled iced coffee market in 2017.

Coca-Cola is likely trying to use Dunkin Donuts’ bottled coffee opportunity to help their stock, which like Dunkin’s is also down. Hoping to stop a downward spiral for both Coke and Dunkin Donuts, is this bottled coffee move the right one for the business? Dunkin Donuts may be down in in-store sales, but they have a successful and quite large grocery store presence. Hopefully, the bottled iced coffee will be sold at a price point that’s cheaper than Starbucks, and therefore more accessible to the millennial market Dunkin’s desperately trying to grab the attention of (Patton). Ready-to-drink coffee sales have increased as consumers have shied away from all the negative aspects of soda (Allen). Consumers want the caffeine they need without the nastiness of soda, and Starbucks has done a great job.

Starbucks is the current market leader, and if Dunkin’s bottled iced coffee rollout is successful, they could lose some of their market share, and Dunkin and Coke could both use that share desperately (Allen). I think that if Dunkin Donuts is going to try to appeal to the fast-paced millennial market, they’re going to need some rebranding. Their logo is out of date, and if they repositioned themselves as trendy and low-cost, they might just be able to give Starbucks a run for their money.

 

 

Sources Cited:

Allen, K. (2016, October 6). Coke and Dunkin’ Donuts team up to challenge Starbucks. Retrieved October 06, 2016, from http://www.prdaily.com/Main/Articles/21533.aspx

Dunkin Donuts. (n.d.). Image [PNG]. Dunkin Donuts Nutrition.https://www.dunkindonuts.com/content/dunkindonuts/en/menu/nutrition.html

Patton, L. (2016, September 29). Dunkin’ Donuts Partners With Coca-Cola for Bottled Iced Coffees. Retrieved October 06, 2016, from http://www.bloomberg.com/news/articles/2016-09-29/dunkin-donuts-partners-with-coca-cola-for-bottled-iced-coffees