Donndole will work with Coca-Cola to launch bottled coffee next year

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Dunkin' Donuts announced that it is entering the bottled coffee market.

In a statement on Thursday, Donndole said the market expansion was in partnership with bottled beverage giant Coca Cola, which will be responsible for the production, distribution and marketing of the new ready-to-drink (ready-to-drink) coffee. The new coffee will be available in grocery stores and convenience stores in the United States in 2017, as well as in Dundole stores.

"our customers, especially young ones, have a demand for Dondole's instant iced coffee." Donndole CEO Nigel Travis said that the company's customers will patronize other bottled coffee brands, such as Starbucks, but with the launch of this new product line, "I hope our daily consumers will be more loyal to the Donndole brand."

At the same time, Travis also said that the company believes that the sale of bottled coffee will also boost the sales of single cup coffee in its stores. "there is a lot of evidence that people who buy bottled coffee are also willing to go to the store to try native products."

In addition to supplementing the product line, both sides may be more optimistic about the market for bottled ready-to-drink coffee. In the U.S., overall sales in the market grew 8% last year and are expected to grow by another 8% this year, according to Nielsen. Euromonitor believes that the U. S. ready-to-drink coffee market has been growing in double digits every year since 2011.

By contrast, Donndole and Coca-Cola are not doing well. In the second quarter of this year, Donndole's same-store sales grew by only 0.5%, compared with 2% in the same period last year, while Coca-Cola's soda sales in North America fell by 1%. But non-soda drinks have grown by 3%, which now accounts for 30% of Coca-Cola's total sales, up from 10% in 2000.

Donndole defines himself as a "coffee brand" | from Donndole

In fact, Donndole, which is often considered to be famous for doughnuts in China, has defined the positioning of the "coffee brand" since the 1980s. Moreover, it also has a good market share, currently accounting for 4 per cent of the single cup coffee market in the US, surpassing McCoffee (3.6 per cent), second only to Keurig, Starbucks and Folgers; in the US ground coffee market, and Dondole's share of 7.1 per cent, second only to Starbucks with 8.9 per cent.

But it is no match for Starbucks in the bottled ready-to-drink coffee market. Starbucks entered the market as early as 1996, compared with Donndole, which has just entered the market. Starbucks has been working with Pepsi since the launch of the first product, bottled Frappuccino, which is still popular. Starbucks firmly ranks first in the US bottled coffee market, with 75 per cent of the market.

The biggest competitor in the ready-to-drink coffee market is Starbucks | from thewire

In addition to facing strong old rivals, Donndole and Coca-Cola also face other challenges. In April this year, Dr. Dr Pepper Snapple Group entered the market by signing a distribution agreement with coffee and beverage company High Brew Coffee, and in July, Peet's Coffee, a local coffee chain that acquired two coffee brands last year, also said it would make great efforts to enter the Cold Brew market and launch bottled and carton retail Cold Brew coffee. In early September, Gold Peak, Coca-Cola's own tea brand, also announced the launch of Cold Brew ready-to-drink coffee, which is scheduled to go public in the first quarter of 2017.

So far, Donndole and Coca-Cola have not given many details about their cooperation, including the taste of the new ready-to-drink coffee remains a secret. "it will maintain the taste and style of Donndole." Travis said.