McDonald’s to sell packaged McCafe coffee in grocery stores

Move over, Starbucks. McDonald’s is putting its packaged McCafe coffee in grocery stores next year.

With the help of Kraft Foods, the hamburger giant will roll out bags of ground and whole-bean coffee, as well as single-cup pods, to compete with fast-food chains including Dunkin Donuts and Starbucks that sell packaged coffee at retail locations.

Hoping to tap into the $11-billion-plus U.S. retail coffee market, McDonald’s and Kraft started testing the bagged coffee at a few supermarkets earlier this year.

“We understand there is huge demand for at-home options, and we’ve built great success with our McCafe coffee in restaurants,” said Greg Watson, senior vice president, McDonald’s U.S. Menu Innovation.

McDonald’s, based in Oak Brook, Ill., has been amping up its coffee offerings since introducing its McCafe brand in 2009. The fast-food chain introduced popular specialty drinks such as Pumpkin Spice Lattes, Frappes and Caramel Mochas.

McDonald’s said last year that its coffee sales had risen 70% since the McCafe launch.

Packaged in 12-ounce bags, McCafe will be offered ground in premium roast, breakfast blend, French roast, Colombian, premium roast decaf and French vanilla and hazelnut plus a French roast whole bean. The chain did not disclose pricing.

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