Dunkin’ Donuts Brews Up Hot Sales With Cold Coffee

The chain’s cold brew has boosted its bottom line, especially because it costs more than regular iced coffee.

October 24, 2016

CANTON, Mass. – Sales of its new cold-brew coffee are hot, hot, hot at Dunkin’ Donuts, ABC News/The Associated Press reports. The chain revealed that the drink has proven very popular with millennials. “They like the taste profile of it,” said Nigel Travis, CEO of Dunkin’ Brands. “It’s certainly in vogue.”

Travis said that the cold brew has been its most popular product launch since 2000. Dunkin’ Donuts makes the brew via a process that steeps coffee beans for 12 hours. Over the past several years, the chain has been steadily adding specialty coffee drinks, including espresso beverages.

Fewer customers visited Dunkin’ Donuts over the last quarter, but those shoppers who came in had a higher ticket. Travis said that those who bought iced drinks were more likely to buy food or more coffee than their hot drink counterparts. Dunkin’ Donuts pegged iced coffee sales to its 2% sales bump in U.S. stores open at least a year.

Starbucks also serves a cold brew coffee, while Sheetz introduced its own version on National Coffee Day last month. According to NACS State of the Industry data, coffee makes up more than 75% of hot dispensed sales in U.S. convenience stores, with more than 60% of Americans drinking coffee and 34% indulging in a gourmet cup of joe every day.

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