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What Does Keurig’s McDonald’s Deal Mean For Kraft’s Coffee Business?

From: foxbusiness.com

Keurig Dr Pepper struck a deal with McDonald’s to license the McCafe coffee brand in the U.S. in an agreement that could prove to be the end of Kraft Heinz’s presence in the coffee business.

Kraft has provided the ground coffee for the McCafe pods since McDonald’s debuted the brand in 2014. Keurig will replace Kraft in that process and both companies expect the transition to be completed by the second half of 2020.

While Guggenheim analyst Laurent Gradnet said the deal with McDonald’s is “too small to matter for Keurig,” he also stated that the agreement likely means the end of Kraft’s Maxwell House coffee brands to help cover mounting debt.

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