McDonald’s USA enters McCafé agreement with Keurig Dr Pepper

McDonald’s USA and Keurig Dr Pepper (KDP) have announced a long-term master licensing and distribution agreement for McCafé packaged coffee in the United States.

Under the agreement, KDP will continue to be the exclusive manufacturer of McCafé K-Cup pods in the US. KDP will also take on responsibility for coffee sourcing, distribution, and marketing of the McCafé brand in K-Cup pods and bagged and canned coffee formats in all classes of trade, including retail and e-commerce, beginning in the second half of 2020.

“We are prioritising making McCafé a go-to coffee brand for our customers, and we are confident this move will strengthen the impact of the McCafé brand in retail,” says Linda Van Gosen, Vice President of Menu Innovation at McDonald’s USA.

the McCafé packaged coffee business launched in 2014 with Kraft Heinz, which will work with McDonald’s and KDP to ensure a smooth transition. Customers will be able to continue to enjoy the McCafé experience at home with the quality, convenience and value they have come to expect.

“McCafé is emerging as one of the power brands at retail, and we are pleased to welcome the brand as a new member of our licensed brand family,” says Derek Hopkins, Chief Commercial Officer at KDP.

“We look forward to innovating with McCafé for our leading Keurig brewing system and bringing our sourcing, roasting, distribution and marketing expertise to further drive growth and expansion of the brand in homes throughout the US.”

McDonald’s and KDP say they’re taking meaningful steps to ensure that coffee is grown and traded in ways that support coffee farmers, their communities and their land. The companies share a commitment to sustainably sourcing 100 per cent of their coffee by 2020, and both are members of the Sustainable Coffee Challenge, a group of global stakeholders aiming to make coffee the world’s first sustainable commodity.

The McCafé brand launched in the US in 2009. In August 2019, McCafé launched a new brand identity including a new logo, golden cups, and brand tagline “Good is Brewing”.

McDonald’s says it has made additional investments including improvements in quality and sustainability, as well as increased convenience offerings such as Mobile Order and Pay and McDelivery.

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