Don't want Starbucks' dominant McDonald's to enter the bottled coffee market.

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McDonald's McCaf é decided to challenge Starbucks directly to fight the coffee giant on supermarket shelves next year.

McDonald's announced on Wednesday that it would work with Coca-Cola to sell bottled McCaf é Frapp é, a bottled drink.

What does Frappe mean?

Frappe coffee: Greek Farabe coffee is an iced coffee covered with milk foam and sometimes added with ice, which is suitable for drinking in summer. Instant coffee is mainly used in Greece, while espresso is preferred in countries outside Greece.

The three bottled drinks, caramel, vanilla and mocha, are not McDonald's first time on supermarket shelves. McCafe's coffee beans and capsule coffee products have long been on the shelves everywhere. But the decision is still significant, which represents McCoffee's official entry into the bottled beverage market.

New product of McCoffee (picture taken from McDonald's website)

Of course, McDonald's has a clear goal in trying to grab the coffee market share of its US headquarters among supermarkets, convenience stores and large retailers-because for now, Starbucks' market share of single-cup coffee in the United States remains at 14.8%, while McCoffee has only 3.6% of the coffee market.

McDonald's executives said, "this is just our basic commitment to McCoffee." "We understand that coffee culture is essential to consumers, and we are committed to meeting consumers' needs with the taste, convenience and sense of value that only McDonald's can provide."

Statistics show that sales of ready-to-drink coffee in the United States exceeded $2.8 billion in 2016, reaching 131 million gallons, up from more than $2.5 billion and 116 million gallons in 2015. Everything shows that the ready-to-drink coffee industry is growing steadily.

The first McCaf é opened in Australia in 1993. Sixteen years later, lattes, cappuccinos and mochas have even appeared on traditional McDonald's menus in the United States, not to mention smoothies, fresh grandmothers and seasonal products.

Starbucks, McCoffee's imaginary enemy, started peddling bottled Frappuccino frozen coffee drinks as early as 1996. McDonald's taking advantage of this market growth to intervene in the bottled coffee market is not to mend, it is only a curve to save the country.

Did McCoffee make a difference in selling bottled coffee?

Can't beat Starbucks in the store, will it do better in the supermarket? It's hard to say.

Compared with Starbucks, McCoffee is more like a store concept, its own brand power is not too strong, and it does not establish a good brand image for its own products. The simplest example: if you are asked to name a famous coffee product of McCoffee, can you answer it?

Of course, this is not to say that bottled coffee itself does not have a head start. Selling bottled ready-to-drink coffee in supermarkets is still very attractive. Compared with store sales, people on the shelves are almost as competitive. Moreover, there are almost no labor costs and food losses in the sales process, profit margins will be higher, and natural competition means will be more effective. So, if not surprisingly, the price should be a big kill for McCaf é Frap é (think about who McCoffee's partner is).