5. Bottled Iced Energy Sports Smoothies
QSR Soft Drinks Tea Coffee Slushies Shakes
Water Coffee Drinks Drinks
Coca Cola √ √ √ √ √ √ √
McDonald’s
Dasani Poweraid
Coca Cola √ √ √ √ √
Nestlé Seattle’s Seattle’s
Burger King
Pure Life Best Best
Coca Cola √ √ √ √ √
Wendy’s Nestea Nestlé
Pure Life
Coca Cola √ √ √ √ √ √
Gold Aquarius Kona
Jack In The Box
Peak Spring Classic
Coca Cola √ √ √ √ √ √ √
Hardees
Nestea Dasani Channel Monster Poweraid
& Carl’s Jr.
Islands
Coca Cola √ √ √ √ √
Chick-fil-A
Dasani
Coca Cola √ √
Popeyes
Church's Coca Cola √
Pepsi √ √ √
Bojangles’
Le Bleu
Coca Cola √ √
El Pollo Loco Nestlé
Pure Life
Pepsi √ √ √ √
Arby’s Nestlé
Pure Life
√ √ √ √ √ √ √ √
Sonic Coca Cola Sonic Poweraid
Wave
√ √ √
Subway Coca Cola Seattle’s
Best
n/a √ √ √ √ √
Dunkin’ Donuts
KFC
Pepsi √ √ 5
(local) (local)
Source: Respective QSR Online Menus
6. Overall Beverage Leaders
McDonald’s: With the recent launch of McCafé, McD has
been able to make their mark in coffee, iced coffee, and
smoothies. They market bottled water with their healthier
menu items, and their $1 price point for Sweet Tea makes it
easily accessible to everyone.
Sonic: Probably home to the widest variety of beverages in
QSRs, they make an event out of their popular slushies with
Happy Hours, and offer drinks that you can’t get anywhere
else.
Dunkin’ Donuts: They expanded upon the basic coffee
offerings and make each product a stand alone celebration
of beverages.
6
8. The Soft Drink Category
“Soft drinks account for
Coca Cola more than 25% of all
Pepsi-Co drinks consumed in the
United States. Meaning
Dr. Pepper
that ¼ drinks
consumed in the US is a
soft drink.”
8
Source: 1
9. Soft Drink Stats
The consumption of soft drinks has
increased 500% in the last 50 years,
according to the US Department of
Agriculture.
56% percent of 8-year-olds drink soft
drinks daily, and a third of teenage
boys drink at least three cans of
soda per day.
Soda is the #1 source of calories in
the average American’s diet, and 7%
of the average person’s caloric intake.
9
Source: 1, 2, 3
11. Soft Drink Sizes
A study from Duke University shows that
consumers shun the smallest and largest sizes
when choices are available.
To increase profits, the research team at Duke
says fast-food restaurants eliminated small (12-
ounce) soft drinks because the larger, 16-ounce,
beverage was more popular. Once the 16-ounce
beverage was the smallest on the menu, sales of
the next larger (21-ounce) soft drinks went up
while sales of 16-ounce beverages dropped.
At the opposite end of the scale of size options, The average fast food chain offers
the sale of 21-ounce beverages was higher than soft drinks in the following sizes:
the largest size offered, the 32-ounce Kid’s Size: 12oz
beverage. When a 44-ounce serving size was Small: 16oz
introduced, however, sales of the 32-ounce Medium: 20oz - 22oz
beverages rose. Large: 30oz – 32oz
Extra Large: 40oz – 64oz
11
Source: 5 - Duke University Study: Joel Huber, Kathryn M. Sharpe, and Richard Staelin
12. Soft Drinks Mixology Trend
While soft drinks themselves are nothing new, the
ability to mix and match that makes them
exciting.
Mixology, a term more commonly used for
alcoholic beverages, has become a new trend in
soft drinks. Instead of filling up on just one flavor,
consumers are being encouraged to take in all
the options and mix them up to create their own
personalized drink.
12
13. 100+ Possibilities
2009: Coca-Cola’s debuted the Freestyle
machine: a touch screen soda fountain
that offer customers a much wider range
of beverage selections, including flavors
that were previously not offered in the
U.S., like Orange Coke and flavored
Dasani waters.
Several franchises that have the
Freestyle Machine in one or more
locations include:
Wendy’s
Five Guys
Boston Market
Qdoba
Fatburger
Subway
Jack in the Box
Popeyes
13
Source: 6
14. Soft Drink Promotions
As most every restaurant and QSR has soda on
the menu, there aren’t many promotions focused
around this beverage variety.
However, some promotions include discounted or
free 2-liters with pizza purchases, or $1 for any
size drink.
14
16. The Iced Tea Category
Arizona (Arizona Beverage Company) “In the United States,
Lipton (Pepsi) Iced Tea makes up
Nestea (Coca Cola) about 85% of all tea
Snapple (Dr.Pepper Snapple Group) consumed and is
very popular as an
Gold Peak Tea (Coca Cola) alternative to
Honest Tea (Honest Tea Inc) carbonated soft
Peace Iced Tea (Peace Iced Tea) drinks.”
Did you know? June is National Iced Tea Month
16
Source: 7, 8
17. Iced Tea Facts
Worldwide, tea is the 2nd most popular beverage after
water, but ranks 6th in the US.
Most of the U.S. consumes unsweetened teas, however
the Southern states still cling to their sugar and drink
mostly sweetened tea.
On any given day, over 154 million Americans are
drinking tea.
In 2010, Americans consumed well over 65 billion
servings of tea.
Iced tea mix comprises about one fourth of all tea
prepared in the U.S.
17
Source: 9, 10, 11, 12
19. Bojangles’
Included in TV ads since
2006
Current promotion on
bojangles.com for their
Legendary Sweet Tea
Available in individual
serving and half gallon
sizes
19
20. Dunkin’ Donuts
First introduced July 2007 in
New England & Upstate NY,
Available in Original,
Raspberry, and Peach flavors
Unsweetened Tea has just 5
calories (in 16oz size)
Also available frozen
Promoted annually via
frequent LTO offer of any
sized iced tea $0.99
20
21. McDonald’s
Introduced in 2007
Originally promoted 32oz
size priced at just $1
Currently, any size tea is
just $1
Promoted on TV, In-store,
and online
This Sweet Tea is in
addition to the regular tea
from the fountain
21
22. Popeyes
Nationally Launched in
May of 2010
Available sweetened and
unsweetened
Available as single serve or
one gallon jugs
Had a Free Tea Giveaway
on 6/12/10
Promoted via Facebook, TV,
and Website
22
24. Bottled Water Category
Aquafina (Pepsi) “Bottled water can
Dasani (Coca-Cola) cost up to 1,900
Nestle Pure Life (Nestle) times more than
Evian (Danone Group) what flows from
your tap.”
Ice Mountain (Nestle)
24
Source: 14
25. Bottled Water Stats
Bottled Water is the fastest growing segment in the
beverage industry.
70% of consumers say they drink bottled water. American
demand is 8.6 billion gallons per year.
The 2011 market forecast is $87 billion, an increase of just
over 40% since 2006.
Plastic water bottles are the fastest growing form of
municipal solid waste in the United States.
Every 27 hours Americans consume enough bottled water
to circle the entire equator with plastic bottles stacked end
to end.
25
Source: 13, 14
26. Bottled Water - Go Green
Bottled water packaging is using
lighter-weight plastics and fewer
natural resources than ever before.
Many bottled water producers have
reduced the plastic container weight
for water bottles by an average of 27
percent, maybe even more.
Ice Mountain uses an Eco-Slim cap,
which along with the bottle use 20%
less plastic than their original Eco
Shape.
26
Source: Ice Mountain
27. Bottled Water Promotions
There are no major promotions around bottled
water, but the product is frequently featured as
the beverage choice for healthier menu items
and meals.
27
29. Coffee Stats
Coffee shops make up the fastest growing
part of the restaurant business, checking in
with a 7% annual growth rate.
Americans consume 400 million cups of
coffee per day, making the United States the
leading consumer of coffee in the world.
Coffee represents 75% of all the caffeine
consumed in the United States.
According to a recent study by the National
Coffee Association, 86 %of past-day coffee
drinkers prepared their coffee at home.
29
Source: 15
30. Iced Coffee
According to a survey by
Dunkin’ Donuts, nearly 80%
of iced coffee drinkers are
drinking more iced coffee
now than they did one year
ago.
56% of iced coffee drinkers
prefer iced coffee to hot
coffee even in the winter
months.
30
Source: Dunkin Donuts, 16
32. McCafé
Line of premium coffee
drinks launched in 2009
Summer 2009 launch
promotions included
“Free Mocha Mondays”
where 7oz iced mochas or
and 8oz hot mochas were
free
Other promos include $1
off coupons or a LTO of
small drinks for $1
32
33. Dunkin’ Donuts
Line of premium coffee
drinks launched in 2009
To celebrate their 60th
birthday this year, Dunkin’
Donuts held a variety of
regional promotions,
including “Free Iced
Coffee Day” at 13 US
locations where they gave
away 16oz iced coffees
33
Source: 17
35. Dunkin’ Donuts
Frozen Drinks Survey
Dunkin' Donuts recently conducted a survey of 500 Americans to
determine the role frozen beverages play in keeping people refreshed
and running. Here are some of the findings:
93% plan to spend more on frozen beverages this summer.
45% said they drink two frozen beverages to feel cool, 12% said they
drink three, and 10% said they drink at least four.
37% prefer a frozen beverage that is Coffee flavored, and 29% said
Vanilla. Strawberry (16%), Orange (10%), and Blue Raspberry (8%) are
other favorites.
66% prefer drinking frozen beverages between 12 pm and 3 pm.
75% said that being stuck in a car in traffic is the worst place to be
without a frozen beverage.
35
Source: Dunkin Donuts, 16
36. Smoothies
The name "smoothee" or
"smoothie" was originally
used by books, magazines,
and newspapers for a product
made in a blender.
Smoothies became popular in
the mid 1960s, when there
was a resurgence in the
United States in macrobiotic
vegetarianism.
36
Source: 20, 21
37. McCafé
McDonald’s introduced
Smoothies in 2010
The brand has promoted
their smoothies with free
samples, free coupons,
and $1 off coupons.
Latest flavor promotion is
for Mango Pineapple
37
38. Jack in the Box
Jack in the Box introduced
Smoothies in 2008
Flavors include Mango,
Strawberry, and
Strawberry Banana
Smoothies are made with
Minute Maid® fruit juice
and nonfat frozen yogurt
38
39. Slushies
There are two major
types of slushies:
Made with frozen,
carbonated water and
flavorings and colorings
(exa: Slurpee, ICEE)
More simply made with
stirred slush and flavorings
and colorings (exa: coffee-flavored ices
and alcoholic drinks like margaritas and daiquiris)
39
Source: 22
40. Dunkin’ Donuts
Coolatta
The Coolatta was introduced in 1997
New flavors were added in July 2010
In July 2011 Twitter fans could celebrate
“Dunkin’ Donuts Frozen Fridays” and
submit their unofficial name suggestions
for one of the new Coolatta frozen slush
drink mixes with hashtag #DDMIX.
“Cool” names have a chance to win a $50
Dunkin’ Donuts Gift Card.
Dunkin' Donuts will serve up a new flavor
combination for consideration each
Friday, with one winner per week to be
selected by the Dunkin' Donuts social
media team.
40
41. Sonic Drive - In
Sonic promotes their wide
variety of slushes with a
daily happy hour: ½ price
drinks from 2-4 pm every
day.
There are 398,929
fountain drink and slush
combinations to choose
from
41
42. Shakes
The original frosty was introduced
when Wendy’s opened in 1969. The
flavor is actually a mixture of
chocolate and vanilla.
A 2003 study on milkshakes found
that"...nearly half of all milk shakes
were bought in the early morning",
and usually, the "...shake was the
only item purchased, and it was
rarely consumed in the restaurant."
42
Source: 24
43. Wendy’s Frosty’s
Instead of just adding
strawberry to the current
chocolate and vanilla
Frosty line up, Wendy’s
went a little more
upscale in 2011.
The new line includes
Oreo and Caramel
Apple Parfaits, and a
Wild Berry Frosty Shake.
43
Source: 25
44. Wendy’s Frosty’s
To promote the new Frosty line,
Wendy’s donated 50 cents to
the Dave Thomas Foundation
for Adoption for each frosty
sold June 18-19, 2011.
If you donated $1 to the Dave
Thomas Foundation by 6/30/11,
you received a free key tag
which you can show to get a
Free Frosty Jr. with any
purchase through 12/31/11.
Donations for Father’s Day have
become an annual event,
promoting the frosty products.
44
46. Implications for KFC
KFC should consider the following beverage ideas to help increase
relevancy and drive traffic to stores:
Soda: capitalize on the mixology trend and offer a greater diversification of
flavors and combinations
Iced Tea: break through the iced tea clutter and create a branded tea authentic
to Kentucky and the Colonel, then offer it in a variety of flavors
Bottled Water: go green and promote a KFC Branded Nalgene or Sigg reusable
water bottle
Coffee: form a partnership with a well known coffee brand like Illy, or a chain
like Caribou Coffee to provide consumers with another option for their mid-
afternoon or evening caffeine fix
Frozen Drinks: take advantage of the growing demand for frozen beverages
and break into new dayparts with new innovative offerings
Other: consider offering other beverages from the Pepsi Portfolio like
Gatorade or Energy Drinks to give consumers something new for QSRs
46
