Article
Tim Hortons rolling out specialty coffee line
The lattes will eventually be available at nearly 3,000 locations in Canada and the U.S.
November 1, 2011 by Alicia Kelso — Editor, QSRWeb.com
Tim Hortons has announced its new specialty coffees, which will soon be available at more than 2,500 locations across Canada. The company said it's the biggest specialty coffee roll out ever in the country.
Starting at $2, the lineup includes lattes, mocha lattes and cappuccinos made with premium espresso.
The lattes, roasted and blended with 100-percent Arabica beans, will eventually be available at nearly 3,000 locations in Canada and the U.S.
"We carefully explored lattes for some time," said Paul House, executive chairman, president and CEO, Tim Hortons. "The unique blends we've developed deliver a rich, creamy drink, consistently and fast. With nearly half a century of coffee experience, we've learned how to produce premium coffee, consistently, at value prices."
Tim Hortons coffee heritage began in 1964 when the company founder brewed his first pot. The chain claims it serves eight out of every 10 cups of coffee sold at quick-service restaurants in Canada, and 2 billion cups of coffee a year in North America.
The new lattes are an extension to the popular Tim's Café Favorites family of specialty coffees. The Café Favorites lineup includes: French Vanilla Cappuccino, French Vanilla Cappuccino Supreme, English Toffee Cappuccino, English Toffee Cappuccino Supreme, Café Mocha, Hot Chocolate, White Hot Choloate and Apple Cider.
It also now includes the espresso-based options: latte, cappuccino, flavored latte, flavored latte supreme, mocha latte, espresso shot (single or double) and tea latte.
"We're helping introduce high-quality lattes at a value price to people outside larger cities," House said. "A good latte isn't easily available in many communities. Now, anyone can enjoy a delicious latte in one of our thousands of locations, or grab one in a drive-thru window, any time of day. We expect our new lattes will be enthusiastically embraced."
Lattes and other espresso-based beverages will be available in Ontario starting Nov. 14, and mid-December throughout the rest of Canada and United States.
Coffee wars brewing
Ahead of the hard launch, many have already analyzed how Tim Hortons' new options will help the company better compete with coffee giants.
Once the new offerings are available in the U.S., Tim Hortons will face a crowded coffee segment that includes Starbucks, McDonald's McCafe, Dunkin' Donuts, Krispy Kreme and others.
In Canada, the Ottawa Citizenreports that the launch should win over some Starbucks customers, and position the chain well against its main competitor, McDonald's Canada. Tim Hortons' 10-ounce espresso drinks start at $2, compared to an 8-ounce espresso-based latte at Starbucks for $3.52.
According to Brian Yarbrough, a retail analyst with Edward Jones, coffee represents more than 45 percent of Tim Hortons' annual revenues.
"They are No. 1 by far. But they aren't going to just sit there and say, 'We're No. 1 so we don't need to change,'" he said, in the article. "With McDonald's remodeling and putting all this money into their stores in Canada, they aren't going to just sit idle. They continue to bring out new products and new menu items. That's one of their biggest positive categories. If you have the same menu day in and day out, consumers eventually get sick of it."
Yarbrough added that specialty drinks not only attract new customers, but are very profitable.
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