In the competitive fast food industry, companies are always looking to maintain an edge. Breakfast has become the highest grossing and fastest growing meal for quick service restaurants, with coffee being the most popular item. McDonalds Canada is announcing their McCafe as a brand of ground coffee beans, which are hitting the shelves of retailers across Canada.

At an attempt to increase market share, McDonalds teamed up with Kraft Foods Group, which is one of the largest packaged food and beverage distributors, to distribute the McCafe brand. The coffee will be accessible in a bag or the ever increasing popular K-Cup form. The expansion into Canada’s coffee industry by McDonalds is a smart choice, as it is a $1.9 billion industry, and its retail is growing 21% in 2013 a year, with the country ranking in one of the top of the world in consumption of coffee.

However, Mcdonalds’ attempt to penetrate into the coffee industry will face a stiff test, with 95% of the market currently being dominated by top brands such as Starbucks and Tim Hortons. McCafe will need to give coffee-lovers a strong reason to switch to the Golden Arches’ brand.

Sources:

http://www.forbes.com/sites/greatspeculations/2014/10/03/mcdonalds-mccafe-to-face-stiff-competition-in-canada/