Coffee war. This fast food joint wants to take down Starbucks, and investors can make great use of it.
Starbucks is the absolute king of coffee sales and is valued by investors for that. But now, an unexpected partnership has come together, bringing together two extremely powerful players to take on the giant.
Starbucks Corporation $SBUX+0.5% is an American company specializing in the production and sale of coffee, tea and other beverages, pastries and sandwiches. The company was founded in 1971 in Seattle and has since grown into a worldwide network of coffee shops.
Starbucks' financial performance has been relatively stable and profitable in recent years. In 2020, the company achieved total sales of $23.5 billion, down 11% from the previous year due to the COVID-19 pandemic. However, the company still held on to a positive level and achieved a net profit of $928 million. In 2021, Starbucks announced a plan to invest $100 million in a community outreach program to help local communities and improve their access to education, career development and other services.
One of the challenges Starbucks faces is transitioning to a more sustainable way of operating its coffee shops and reducing its environmental impact. In recent years, the company has implemented measures such as reducing energy consumption, recycling waste and promoting local food sourcing.
Starbucks $SBUX+0.5% has by far the largest share of the coffee market. Even so, one of its biggest competitors in the coffee business is Dunkin' $DNKN
Dunkin' may not seem like a major player in the coffee business, but it says it has more than 8,500 locations in the United States. Starbucks has more than 35,000 worldwide. And Dunkin' has decided to take advantage of that.
Opening their locations is unrealistic. However, Dunkin' has something else in mind, and that is to team up with a major competitor to beat Starbucks. And with competitors that are highly unexpected. And with $KO+2.1%. So the merger of two seemingly strong competitors is a unique opportunity for both companies to try to take market share away from a common competitor that dominates the coffee market.
The collaboration between the two giants is already on the shelves of Dunkin' stores and branches in the US. The coffee in a can that $KO+2.1% produces and distributes to Dunkin' stores.
"We value our loyal customers and wanted to honor their favorite baked goods in a delicious way that only Dunkin' can," Dunkin' Vice President of Retail Development Brian Gilbert said in a statement. "We are excited to partner with The Coca-Cola Company to introduce the Bakery Series and offer iced coffee drinkers a new tasty option to Dunkin' coffee."
And what is Dunkin' anyway?
Dunkin' Brands Group, Inc. is an American company that operates the Dunkin' Donuts and Baskin-Robbins coffee shop chains. The company was founded in 1950 in Quincy, Massachusetts, and has since grown into a worldwide network of cafes and ice cream parlors. In 2020, Dunkin' announced plans to sell and acquire Inspire Brands Inc. which could lead to changes in strategy and café operations.
One of the challenges Dunkin' faces is competition in the coffee and food market. The company is trying to stay competitive by offering new products and innovative services such as mobile ordering and delivery - or just partnering with other strong players.
Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.
