McDonald’s wants to be a bigger player in the global coffee business. The world’s biggest hamburger chain on Thursday highlighted beverages as one of its key growth opportunities at a daylong presentation for investors. McDonald’s CEO Don Thompson noted that coffee is one of the fastest growing categories in its global drinks business and said that the company has less than its “fair share” of the market. When asked to identify competitors in the space, Thomp
son chose to keep the discussion broad.
“Anyone that stops off to get a cup of coffee anywhere, that’s an opportunity,” Thompson said.
The push comes as Starbucks Corp is enjoying strong sales growth even in the choppy economy.
In the latest quarter, the Seattle-based chain said global sales rose 7 per cent at locations open at least a year.
At McDonald’s, the figure edged up 0.9 per cent.
As for the coffee servings sold in the US restaurant industry, McDonald’s currently has less than 13 per cent of the market, said Kevin Newell, the company’s chief brand and strategy officer for the region.
Still, he noted McDonald’s coffee sales have surged 70 per cent since the introduction of McCafe specialty coffees in 2009.
A big part of the attraction of McDonald’s coffee is value; many locations in the US offer a regular drip coffee of any size for $US1.
But McDonald’s wants to get people to buy pricier drinks, too.
This northern autumn, the company introduced a pumpkin spice latte following the popularity of similar drinks at Starbucks and Dunkin’ Donuts.
And next week, McDonald’s plans to launch a white chocolate mocha flavoured latte.
The company also recently said it’s partnering with Kraft Foods Group Inc to sell McCafe bagged coffee at supermarkets in test markets.
The company is hoping the move will help build awareness of the McCafe brand.
“It’s about selling more coffee in restaurants,” Newell said of the Kraft partnership.
Outside of the US, McDonald’s also has about 4200 separate McCafes that are either sectioned off from the main restaurant or stand-alone locations.
McDonald’s says it plans to add another 350 to 400 such McCafe locations next year.
AP