Ready to Drink Coffee is Ready to Explode

Posted on: 2016-12-15 11:02 AM

The Coca-Cola Company has seen the future and it smells like coffee. The world’s biggest beverage company has partnered with Dunkin’ Donuts to expand its ready-to-drink coffee line. The Ready-To-Drink, RTD, coffee segment currently nearly tops $2 billion.
 
The trend of retailers putting successful products out of the store onto conventional shelves coupled with millennials driving the craving for iced coffee beverages has made RTD coffee a hot commodity. Mintel sees cold coffee products as a fast-growing category at retail, with those between the ages of 18 and 34 drinking those beverages the most (69% consumption rate among millennials).
 
The partnership with Dunkin’ Donuts will produce a line of bottled RTD iced coffees under Espresso, French Vanilla, Mocha and Original. “This is a big bet for us, and we’re confident we have the right strategy in place to capture the tremendous opportunity we see ahead,” said Geoff Henry, vice president of coffee and tea at Coca-Cola North America. “As the leader in the hot and iced coffee categories in the U.S., Dunkin’ Donuts RTD coffee is a unique, strong brand with a loyal following of fans who will be excited for new offerings [in the category].”
 
Henry pointed out that the RTD coffee line will be the same as what customers can find at Dunkin’ Donuts locations. The products will be available in supermarkets and convenience stores. Coke announced this fall that it would focus more attention on noncarbonated beverages. Meanwhile, PepsiCo and Starbucks have enjoyed a partnership since 1994, with its bottled beverages such as Starbucks Frappuccino and Doubleshot holding a 97% share of the RTD coffee market.