Starbucks and Dunkin Donuts Plot a Smoothie Industry Attack This Spring
Fast food giants offering healthier alternatives on their fattening menus is en vogue, and one item that many of the biggest names in the industry are now targeting to juice sales is the yogurt-based real fruit smoothie. Dealing with competitive pricing on their traditional hot and iced coffee beverages, Starbucks (SBUX) and Dunkin Donuts (DNKN) are trying to attract people this spring that want their fruity, nutrient-packed breakfast in a plastic cup and are willing to pay for that delectable delight. On March 31, Starbucks launched three new smoothie flavor options at 4,300 stores along the West Coast and at select Target (TGT), Albertson's, Safeway (SWY) and Kroger (KR) supermarkets. Dunkin Donuts one upped Starbucks by announcing the roll-out of blender-made, low-fat yogurt smoothies in February. The company, with its vast number of glazed donuts and sugary coolatta iced coffee drinks, began selling two types of smoothies. Both Starbucks and Dunkin Donuts are seeking a portion of a smoothie market valued at some $2.2 billion annually and growing by about 3% per year, according to the latest data by research firm IBISWorld. But the heavyweights in the coffee and pastry industry will have to confront several smaller, yet prominent names in the smoothie business whose sole business model is selling smoothies, such as Tropical Smoothie and Jamba Juice. TheStreet’s Brian Sozzi reports on the spring smoothie battle about to erupt.
