McDonald's Canada launches McCafé brand nationwide

Nov. 6, 2011

McDonald's Canada is taking a major step in its beverage growth strategy with the national launch of the McCafé brand and the introduction of premium espresso-based beverages in the majority of its restaurants.

The expansion of the McCafé brand and its product offering is part of the company's goal to elevate its coffee portfolio.

"In just a few years, coffee has joined our iconic offerings like the Big Mac and 'World Famous Fries' as a strong driver of the McDonald's business," said John Betts, president and CEO of McDonald's Canada. "We see an opportunity to continue expanding our beverage platform and efforts to gain a greater share of the very sizeable Canadian beverage market."

In two years, McDonald's Canada has doubled its brewed coffee sales and is on track to serve Canadians approximately 200 million cups of its Premium Roast Coffee this year.

In addition to extending its McCafe product portfolio, the company's recent restaurant re-imaging initiative gave McDonald's Canada a unique opportunity to create a defined space for McCafé in-restaurant, creating a brand within a brand at the point-of-sale.

"The McCafé brand is a game changer for our business and the biggest initiative we've undertaken since we revolutionized the way people eat breakfast on-the-go with the introduction of the Egg McMuffin over 30 years ago," Betts said. "We believe McCafé will drive our beverage and food business to unparalleled heights and solidify McDonald's as an indisputable leader in the Canadian quick-service restaurant arena."

The McCafé espresso-based beverage offering includes cappuccinos, lattes, Americanos, espressos and mochas. McCafé premium espresso-based coffee begins with 100-percent Arabica beans, fresh ground in-restaurant, and the choice of 2 percent or skim milk.

Beverages can be customized by adding extra espresso or flavor shots such as caramel, vanilla or sugar-free vanilla syrup, as well as real whipped cream.

As of today, more than 870 McDonald's restaurant locations coast-to-coast carry McCafé espresso-based beverages. The majority of the company's remaining restaurants will introduce McCafé by the end of 2012.

The introduction of McCafé premium espresso-based beverages will be supported by one of McDonald's Canada's largest multi-channel advertising campaigns. As part of the campaign, an estimated 95 percent of Canadian households, or roughly 12 million Canadians, will get a McCafé coupon mailer throughout the next week, including a free small McCafé specialty beverage and a buy one, get one free coupon offer, among several other coupons.

McCafe has provided a boon globally

Since launching the first McCafé items in 2006, McDonald's U.S. has seen a continuous boost in beverage sales.

In the company's most recent earnings call, new McCafé offerings helped increase total beverage sales by 16 percent year over year.

McCafé is currently expanding globally. In Europe, there are more than 1,400 McCafés with Germany leading the way at 750-plus. In APMEA, Australia has 650 McCafés, and McDonald's plans on having approximately 250 in China by year's end.

Read more about food and beverage launches.  

Topics: Business Strategy and Profitability , Coffee/Bakery/Donut , Food & Beverage , International , Operations Management

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