MILAN – McDonald’s is partnering with Kraft Foods Group to test selling McCafe packaged coffee at grocery stores and other retail locations in multiple U.S. markets.
According to a report by Reuters, the coffee will come in whole bean, ground, and single-serving forms. Pricing was not disclosed.
The company announced the new sales strategy on Wednesday, saying it will start test selling a variety of packaged ground and whole-bean coffee bags as well as single-cup services at a in 2014.
McDonald’s has been selling packaged McCafe in Canadian grocery stores for about a year, reported The Wall Street Journal.
A McDonald’s spokesperson said the chain regularly conducts market tests, adding: “We are building on the momentum of our McCafe beverages in our restaurants by expanding these options…to grocery stores and other retail locations.”
Kraft CEO Tony Vernon said he doesn’t expect McCafe to cannibalize the sales of Kraft’s coffee brands, because it will be a step above Maxwell House and below Kraft’s premium Gevalia brand.
Kraft previously distributed Starbucks coffee. The partnership ended with a contentious split in March 2011. Starbucks on Wednesday said it expected to resolve its dispute before the end of calendar 2013.
The bagged coffee market in the US has an estimated value of $5.6 billion. Coffee represents 6% of McDonald’s sales.
