| US

McDonald's and Keurig Dr Pepper announce McCafé retail partnership

McDonald’s and Keurig Dr Pepper (KDP) announce long-term master licensing agreement to distribute the fast-food chain’s McCafé branded retail products in the US

KDP will take responsibility for coffee sourcing, distribution, and marketing of McCafé retail products from late-2020

KDP will remain the exclusive manufacturer of McCafé K-Cup pods in the US but will take responsibility for coffee sourcing, distribution, and marketing of the McCafé brand across K-Cup pods and retail products, such as ground coffee, from the second half of 2020.

McDonald’s first launched its McCafé packaged goods business with Kraft Heinz in 2014, with the three firms stating they will ‘work together to ensure a smooth transition.’

“We would like to thank our current partner Kraft Heinz for a successful partnership in McCafé packaged coffee. We are looking forward to the next chapter and working with Keurig Dr Pepper, a leader in innovation and marketing of single-serve coffee pods,” said McDonald’s USA vice president of menu innovation, Linda Van Gosen.

Derek Hopkins, Chief Commercial Officer at KDP, added: “McCafé is emerging as one of the power brands at retail and we are pleased to welcome the brand as a new member of our licensed brand family.”

Formed in January 2018 after JAB Holdings acquired Dr Pepper Snapple and merged it with its Keurig Green Mountain coffee business, KDP is the third-largest soft beverage company in the US, generating some $11bn in revenue. The McCafé retail partnership further demonstrates JAB Holdings’ strategy to deliver hot and cold beverages through multiple consumer channels across cafés, ground coffee products and ready-to-drink (RTD).

McDonald’s operates more than 14,000 locations across the US and has pivoted its premium McCafé coffee offer toward value-conscious and convenience driven consumers.

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