Growing popularity of coffee-cafés has meant that popular fast food joints have to review their product offering and continue to be relevant especially to youth. No surprise McDonalds have decided to offer freshly grounded value-for-money coffee at its outlets. What is a little surprising is exclusion of Nestle, test marketed recently in favour of Coke’s Georgia brand.
With this alliance, McDonalds India will serve Coca Cola’s Georgia Coffee at all its outlets. It will first be launched in western India on Tuesday and northern India on July 15.
According to sources in McDonald’s “the company was initially planning to enter into an alliance with Nestle for introducing coffee at its outlets but it decided in favour of Coca Cola. With Coca Cola it was an extension of its already existing partnership of carbonated drinks.”
The company was test marketing Nestle products at some of its outlets therefore the tie-up with Coca Cola comes as a surprise, specially when worldwide McDonald and Coca Cola they do not address market segments together.
After Japan India is the first country when both these companies have come together to sell carbonated drinks and Georgia coffee.
The official said “as far as Nestle is concerned we would still be looking at them for its range of tea but for coffee it is Coca Cola.” McDonald is expecting its new menu of coffee to pull in customers from the other coffee chain.
He said “our coffee will be priced competitively and perhaps more economical than what is offered by other coffee chain. We are a restaurant aimed at the large Indian middle class families. We cater to people from all segments therefore price competitiveness is essential.”