Foodservice

Clutching Coffee

As Burger King nabs Seattle's Best, McDonald's launches frappes,smoothies
MIAMI -- If nabbing Seattle's Best Coffee for its restaurants is a coup for Burger King, it's just as large a triumph for the coffee brand owner, Starbucks Corp., and as big a sneer at McDonald's Corp., which is launching a fresh wave of coffee and beverage innovation of its own. This week, Burger King announced it is teaming up with Seattle's Best to offer freshly brewed, premium coffee in its quick-service restaurants nationwide.

Seattle's Best Coffee will replace Burger King's current BK JOE coffee program.

"We'll be delivering a better cup of coffee," John Schaufelberger, [image-nocss] senior vice president of Burger King's global product marketing and innovation, told the Associated Press. He also stressed that improving the company's breakfast business is among the chain's "top strategic priorities."

The move takes a page from rival McDonald's Corp.'s success with its McCafe line of coffee drinks, which have been credited with boosting its performance. The deal also adds a new wrinkle to the coffee wars, because McDonald's coffee campaign has been seen as taking aim at Starbucks.

In its counterattack, Starbucks/Seattle's Best has in recent months signed deals with Subway, Taco Bell and now Miami-based Burger King.

As part of its deal, Burger King announced it will offer Seattle's Best Coffee in approximately 7,250 Burger King restaurants across the United States by September 2010. The 100% arabica bean coffee will be available hot or iced, with optional vanilla or mocha flavor and whipped topping, at a suggested retail price of $1 to $2.79.

"With more than 40 years of heritage in premium coffee, Seattle's Best Coffee brings a high-quality, great tasting cup of coffee to Burger King restaurant guests in the U.S.," said John Schaufelberger, senior vice president, global product marketing and innovation, Burger King Corp."

"The addition of Seattle's Best Coffee expands on our 'have it your way' brand promise by offering our guests even more beverage options and strengthens our ability to remain competitive in a continuously changing industry," Schaufelberger said.

For Seattle's Best part, "together we are making premium coffee far more accessible than it has ever been," said president Michelle Gass.

The news comes just as McDonald's has ramped up its own coffee and beverage business once again.

The Oak Brook, Ill.-based QSR chain's latest wave in its big beverage offensive includes frappes and smoothies.

The frappes recently landed in Chicago, making the area a proving grounds for the sweet, icy drinks, according to a Chicago Tribune report.

Frappes, which come in mocha and caramel flavors, are available in about 25% of Chicago-area McDonald's and are progressively rolling out in the entire region, Danya Proud, a company spokesperson, told the newspaper.

McDonald's launched frappes during 2009's fourth quarter, with Seattle being one of the first markets. Frappes are available in about one-third off McDonald's almost 14,000 U.S. outlets.

The drinks are part of McDonald's "combined beverage" initiative, its biggest new-product foray in decades and a blitz aimed partly at Starbucks, the paper said. It began in 2006 with regional marketing of espresso-based coffees, and went national in May with a big advertising campaign for specialty coffee.

Frappes will be followed by smoothies, which are already available in some test markets, the report said. They are available in strawberry banana and wild berry flavors. Both the smoothies and the frappes are expected to be available nationally by the middle of the year.

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