Competition brewing in Canada’s cold beverage market, as KFC and Dunkin’ take on Tim Hortons

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Or sign-in if you have an account.An employee fills a drinks order at a Dunkin' in New Jersey. The U.S. coffee chain will return to the Canadian market in late 2026 or early 2027, with plans to open hundreds of locations across the country. Photo by Ron Antonelli/BloombergSome fast-food big guns from the United States are muscling in on Tim Hortons’ territory as one of Canada’s beverage kings, but the iconic coffee chain says it is not worried.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAsked during a conference call with analysts this month about “a notable Northeast chain” that plans a rapid return to the Canadian market, Josh Kobza, chief executive of parent company Restaurant Brands International Inc., said competition is nothing new in the quick-service restaurant market.“My confidence level on Tim’s is really high,” Patrick Doyle, RBI executive chairman, said during same call.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe “notable Northeast chain” is Dunkin’, formerly known as Dunkin’ Donuts, which will return to the Canadian market in late 2026 or early 2027, with plans to open hundreds of locations across the country.The move was announced in May by Canadian restaurant operator Foodtastic, which will exclusively develop the Dunkin’ brand nationally through both corporate and franchise-operated locations.The return of Dunkin’ could heat up the beverage and baked goods market, long dominated by Tim Hortons, as well as McDonald’s.While known for its coffee and doughnuts, Dunkin’ dropped “Donuts” from its name in January 2019 and has since rebranded as a “beverage-led company,” serving not only the iced coffee it’s been known for, but also a variety of refreshers, lemonades, frozen drinks and zero-sugar cold beverages. The brand collaborated with celebrity Kylie Jenner this summer for a line of pink-coloured drinks.“I think it’s a cooler, younger, trendier brand with better coffee and baked goods and tastier breakfast offering than what Tim’s or McDonalds has right now,” Foodtastic founder and chief executive Peter Mammas told the Financial Post in an interview in May.Ten days after the Dunkin’ announcement, Tim Hortons said it planned to open 80 new Tims restaurants across Canada this year and renovate about 400 restaurants.RBI executive chair Doyle said Tim Hortons is a business that has consistently performed over the past five years, and he expects competition in Canada five years from now to be pretty much identical to what it is today.“This is all in our control and the consumer environment, the economy, is no different this year than it was last year,” he added. “This is about continuing to find ways to be more interesting.”But the push for beverage market share isn’t limited to Dunkin’. KFC Corp., best known for fried chicken, debuted a new lineup of cold drinks last month called Kwench, the restaurant chain’s first launch of the line in North America.Made-to-order beverages include iced lattes, milkshakes, refreshers and lemonades, with prices starting at $3.50.KFC has launched Kwench in the United Kingdom, Ireland and Australia, but not yet in its home market, the United States.KFC Canada president and general manager Ryan Koon said the company wanted the North American launch to be in Canada because it has had success with innovative products here such as the Double Down sandwich and its pickle menu that sold out last year.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Koon said the chain sees an opportunity to resonate with younger consumers through the new cold beverage line.“When you start looking at the beverage category in general, it’s just a major way specifically of what those younger consumers are looking (for), and we look at it as a great way for us to be able to get in and become more relevant,” he said.It’s an idea shared by KFC’s competitors as beverages have become a leading driver of fast-food choice, said KFC. “Kwench is primed to meet the moment.”Tim Hortons CEO Kobza said the pace of new cold beverage innovation has definitely stepped up and Tim Hortons is getting faster at bringing new products to market, noting the recent launch of matcha beverages to the Tim’s menu in Canada.He said Tim Hortons is maintaining its share of its core coffee customer, but is also doing “extraordinarily well” with cold beverage and other offerings.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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