NEW YORK (TheStreet) - McDonald's (MCD) is planning to roll out packaged coffee next year at grocery stores across the U.S., but don't expect to see other Mickey D's goodies in the grocery aisle anytime soon.
McDonald's said on Tuesday that by partnering with Kraft (KRFT) it plans to "expand the manufacture, marketing and distribution of the McDonald's McCafe brand in the U.S. by packaging its signature coffee for sale in grocery stores and other retailers nationwide." The coffee product will come in ground, whole bean and on-demand single cup McCafe coffees, beginning in early 2015, McDonald's said in a press release.
McDonald's strategy to add exposure at the retail aisle says "this a brand that can compete" with the likes of Starbucks (SBUX) and Dunkin Brands (DNKN) , said David Morris, senior analyst at Packaged Facts, a market research firm that focuses on food, beverage and consumer packaged goods categories.
"All coffeehouse brands are in [packaged] coffee at this point from Peet's to Caribou to Seattle's Best. McDonald's may see this as a natural progress [to] be taken seriously as a coffeehouse brand," Morris said.
In addition, with Kraft as a partner, "there is the opportunity for [McDonald's] to introduce other type of coffee type of beverages down the road," Morris said. However, any potential for frozen hamburgers or French fries is likely not being considered, he added. "Coffee is a far more natural segue into retail," he said.