Source: coffeedetective.com
Being able to have your favorite brand of coffee without having to leave your house has been a way businesses increase their profits. ABC News article shares how Dunkin’ Donuts has recently expanded their sales of packaged coffee in grocery stores nation wide in hopes to maximize their profits. This will give customers incentives to buy their coffee brand at the store because there will be more coffee in a package for a cheaper price than there would at the coffee shop. Coffee corporations sell their brand coffee and other items in order to give their customers incentives of having their favorite coffee at home.
This year Dunkin’ Donuts plans to expand their packed coffee nation wide. ABC News claims that Dunkin' and P&G say they've lined up 40,000 grocery and other retail stores nationwide to launch their packaged coffee. Twelve-ounce packages will be offered at a suggested price of $7.99, with 40-ounce bags going for about $16 each in retail warehouse clubs. These packages will be sold by the likes of Wal-Mart, Kroger and CVS in a bid to get customers to brew the brand at home, not just pick it up at Dunkin' outlets. The plan is expected to triple U.S. stores to 15,000 by 2020. Robert Rodriguez, Dunkin’s Brand president says that "if you're going to be accessible, you have to be in both places." Dunkin first established their coffee brand in grocery stores in 2002 and they thus have become one of the biggest corporations today. Having the access to their coffee from home only maximises the profits. Dunkin also offers a Dunkin at home website where customers can visit that shows them nearby stores where their coffee is sold.
Along with Dunkin’, Starbucks sells their coffee in stores nation wide, but their most recent trend is the cold brew coffee. Starbucks has recently brought cold brew coffee to U.S. grocery and convenience stores on a bet that the slow-steeped drink beloved by coffee connoisseurs can have broader appeal. With the popularity of iced coffee increasing, cold brewed coffee is the next best thing. Cold brew has become trendy in a coffee industry where consumer interest has shown more interested in cold drinks. Starbucks itself has helped popularize that trend, as its cold coffee-based drinks added to the menus over the years have helped sell more beverages during the summer. This competes with the Dunkin’ Donuts ever so popular iced coffee. Along with this, Starbucks offers a coffee at home website where customers can visit to be instructed on how to brew their favorite coffee drinks at home. This site corresponds with the season, so customers can have their favorite holiday drink at home.
Keurig has provided a huge increase in allowing customers to have their favorite coffee at home. With the correct Keurig brewing machine, customers can insert a K-cup with the coffee brew of their choice, and within seconds they have Starbucks or Dunkin’ Donuts coffee at home. In the long run, having the K-cup at home every day is most likely much cheaper than going to the actual coffee shop each morning. Robert Goldin, of the Chicago-based restaurant and retail consulting firm Technomic says that “away from home is where the action is with respect to coffee.”
Future questions: Do coffee corporations show maximization in their products by teaming up with other business's and corporations?
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