Dunkin’ Donuts will begin testing five premium teas in the Chicago market in October in a move to repeat Teavana’s success in coffee shops.
Dunkin’ holds 16% of the market compared to Starbucks which accounts for 33% of U.S. coffee retail. Teavana is now available in 11,500 Starbucks locations and eight showcase tea bars as well as 360 mall locations.
“The tea market is one that’s evolving relatively quickly,” said Chris Fuqua, V.P. of brand marketing & global consumer insights & product innovation at Dunkin’. He said the Chicago trial will involve several hundred locations and feature black, hibiscus, chamomile mint and a blend called “harmony leaf.” The pyramid hot tea sachets contain full leaf tea.
“We’re excited about this test and we look forward to providing our guests with new choices in an important beverage category,” Fuqua told World Tea News.
Currently, Dunkin’ sells regular, decaf and green tea. The premium teas may eventually replace this line, Fuqua said. “Pending test results in Chicago, we think this is something that we’ll want to go broader with,” he told Bloomberg News.
Dunkin operates 11,300 restaurants in 37 countries and reported franchise sales of $9.8 billion in 2014.