Dr Pepper, which is currently available in approximately 8,500 U.S. McDonald's restaurants, will be rolled out to all 14,000 U.S. restaurants starting this year, bringing Dr Pepper to McDonald's in a number of major new markets, including Chicago, Los Angeles, Northern California and the Northeast. Diet Dr Pepper, currently available in 3,500 U.S. restaurants, will be available as a regional option.
"Dr Pepper has been a great McDonald's supplier for many years. It's a brand that performs well in our system," said Karen Wells, vice president of strategy and menu for Oak Brook, Ill.-based McDonald's USA. "As our customers continue to look for more variety and choice in the beverage offerings available to them, it makes sense to have brands like Dr Pepper and Diet Dr Pepper available to provide our guests with even more quality beverage options to choose from."
The Coca-Cola Co., Atlanta, has announced a "refreshed" lineup of fountain and bottle beverages that for McDonald's U.S. restaurants, beginning this year. This effort, part of a larger beverage strategy, will provide McDonald's customers even more beverage choices and meet customers' changing taste preferences and desire for more portable, convenient beverage options.
Beginning this year, the core fountain lineup at McDonald's 14,000 U.S. restaurants will include Coca-Cola, Diet Coke, Sprite and Hi-C Orange. Coca-Cola's Dasani will remain a national core bottled water beverage, and now Powerade Mountain Blast and vitaminwater XXX (Triple X), will be made available as regional bottle options.
Coca-Cola brands including Powerade, Sprite Zero, Fanta Grape, Fanta Strawberry, Caffeine Free Diet Coke, Barq's Root Beer, Minute Maid Lemonade and Minute Maid Lemonade Light will be made available as regional fountain options at U.S. McDonald's restaurants. Coke Zero will also be offered in a number of restaurants as part of McDonald's ongoing beverage development.
"We've worked with our partners at Coca-Cola to bring our customers the exciting new beverages they desire, while continuing to provide them the brands they have enjoyed at our restaurants for more than half a century," said Wells. "Our relationship with Coca-Cola has never been stronger.... While bottled beverages provide additional benefits of portability and convenience, Coca-Cola fountain beverages remain the foundation for our beverages offerings."
Javier Goizueta, vice president of Coca-Cola and president of its McDonald's Division Worldwide, said, "We have an unrivaled commitment to provide the best beverages, customer strategies, equipment platforms, operations, service and quality to improve and enhance the customer experience. This also speaks to the strength and value of our 54-year relationship. We share the same desire and drive to consistently meet the demands of our mutual customers' changing tastes and beverage needs."
He added, "We're pleased to implement this phase of the beverage strategy with McDonald's USA. As a world leader in beverage innovation, Coca-Cola continues to work with McDonald's on beverage development across a wide array of beverage categories, including teas and juices."
"This is about McDonald's becoming a beverage destination and building off our offerings of fountain beverages," Wells, told Bloomberg. "It's another extension to have more variety and choice for our customers."
McDonald's is expanding its fountain and bottled drinks to complement the McCafe espresso-based drinks that are now available in about 70% of its U.S. locations. The company expects fountain and bottled drinks to help drive beverage sales outside of breakfast hours.
For Dr Pepper Snapple, the five-year deal is "the last piece of the puzzle" in making the soda available in restaurants nationwide, Dave Rollins, senior vice president of fountain and foodservice at Dr Pepper Snapple, told the news agency. "This is a huge prize for us. In the last five years, we've been able to gain 100% availability in 25 of the top 30 fast-food chains.
Dr Pepper is already available nationwide in Burger King Holdings Inc.'s 7,500 U.S. stores and Sonic Corp.'s 3,500 sites. Diners can buy Dr Pepper at 80% of Wendy's restaurants and 60% of Subway Restaurants, Rollins said.
Coca-Cola, which counts McDonald's as its largest customer thanks to a handshake deal dating to 1955, controls about 70% of the fountain market. PepsiCo Inc., Purchase, N.Y., controls about 20%, said Bloomberg.
The fountains used in McDonald's stores have eight taps, five of which will serve the core beverages: Coca-Cola, Diet Coke, Sprite, Hi-C Orange and Dr Pepper. The franchise co-ops will vote to select which options they will add to the remaining three taps.
Coca-Cola offers nearly 500 sparkling and still brands. Along with Coca-Cola, the company's portfolio includes Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, POWERADE, Minute Maid and Georgia Coffee.
In addition to its flagship Dr Pepper and Snapple brands, Plano, Texas-based Dr Pepper Snapple Group's portfolio includes 7UP, Mott's, A&W, Sunkist soda, Hawaiian Punch, Canada Dry, Schweppes, Squirt, RC Cola, Diet Rite, Penafiel, Rose's, Yoo-hoo, Clamato and Mr & Mrs T mixers.
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