Dunkin' partners with Coca-Cola for ready-to-drink coffee

Markets Reuters

Dunkin' Brands Group Inc said its donut chain will partner with Coca-Cola Co to launch a line of cold coffee beverages in the United States, its first foray into the ready-to-drink coffee market.

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The Dunkin' Donuts chain operator said the beverages, set to launch in early 2017, will be manufactured, distributed and sold by Coca-Cola.

The bottled iced coffees will be sold at grocery, convenience stores and Dunkin' Donuts restaurants.

Terms of the deal were not disclosed.

Dunkin' said it would equally share net profits from the sales of ready-to-drink coffee sold outside its restaurants with select U.S. Dunkin' Donuts franchisees.

Under the deal, Coca-Cola will produce the coffees using Arabica coffee blends, the donut chain operator said on Thursday.

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Starbucks Corp , which has been selling ready-to-drink coffees in North America since 1994, controls about 97 percent of the U.S. ready-to-drink coffee market in a 50/50 partnership with PepsiCo Inc . (http://bit.ly/2dcRuvU)

Dunkin' has partnered with Coca-Cola since 2012 to serve Coke beverages at its coffee chains in the United States and certain other countries.

(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Shounak Dasgupta)