McDonald’s wants you to have their coffee when you are Ready-2-Drink and that way just might be at home. Kevin Newell McDonald’s U.S. Chief Brand and Strategy Officer speaking on McDonalds earning call yesterday selling coffee in the grocery aisle next year is a tactic to drive “greater awareness and sell more coffee in our restaurants”.
The Ready-2-Eat and Heat-N-Eat fresh prepared food niche aka the Grocerant niche has been expanding for many years now and McDonald’s is taking notice. Newell noted that more than 70% of coffee consumption in the U.S. occurs at home, and this retail test will allow McDonald's to tap into the demand that exists and "highlights how serious we are about elevating McCafe brand potential."
What Omni-channel retailers are in most cases getting is an overall brand lift when executing new branded products into non-traditional avenues of distribution. The halo around a brand increased and sales an and profits in all channels benefit. Foodservice Solutions® Grocerant Guru stated “this test will prove successful”.
The opportunity for McDonald’s to become highly successful with the grocery aisle will significantly increase as they add additional SKU’s and LTO’s into the channel. Including items the ilk of flavored espresso drinks akin to the pumpkin spice latte, and tea.
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