Here's How Dunkin' Donuts Wished Starbucks a Happy National Coffee Day - TheStreet

Here's How Dunkin' Donuts Wished Starbucks a Happy National Coffee Day

Dunkin' Donuts is going after Starbucks' strong position in packaged coffee.
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Dunkin' Brands Group (DNKN) - Get Report wished its fierce rival Starbucks (SBUX) - Get Report a happy National Coffee Day on Thursday by hatching a plan to attack the bottled frap's supermarket dominance. On Thursday, Dunkin' Donuts announced that it will launch a line of branded, bottled coffees in the U.S. in early 2017. Coca-Cola (KO) - Get Report  will manufacture, distribute and sell the product. Financial terms of the deal weren't disclosed. "We think it's going to keep a lot of our customers in the Dunkin' family -- and we think it's a growing category," said Dunkin' Brands Chairman and CEO Nigel Travis in an interview. Travis declined to share what flavors would be available at launch time, saying the Coca-Cola will be the one to share the details. Historically, Starbucks -- which partners with PepsiCo (PEP) to distribute its ready-to-drink coffee -- has cleaned up in the bottled coffee market with an array of bottled frappuccinno flavors. Starbucks is now in the process of rolling out its cold brew coffee to supermarkets. Net revenues for Starbucks channel development segment, which includes sales of bottled coffees as well as its popular K-Cups, grew 9% from the prior year to $440.8 million in the most recent quarter. Dunkin' joins Starbucks in what has been a red-hot market overall. The U.S. ready-to-drink coffee market has been growing by double digit percentages annually since 2011, according to Euromonitor, and is projected to reach nearly $3.6 billion by 2020. The global market stood at $18 billion in 2015. Starbucks is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells SBUX? Learn more now.