Dunkin’ Duels Starbucks With Snickerdoodle Latte

By Leslie Patton

Starbucks Corp. (SBUX) isn’t the only coffee-shop chain serving up new drinks for the holidays.
Starting today, Dunkin’ Donuts is selling snickerdoodle and sugar-cookie lattes, both new for this year, said John Costello, president of global marketing and innovation for Canton, Massachusetts-based Dunkin’ Brands Group Inc. (DNKN)
“Our guests love tradition along with new,” Costello said in an interview. “I would describe our holiday strategy as familiar with a twist.”
Starbucks’ U.S. customers have to wait until Nov. 12 for its new holiday beverage: the chestnut praline latte. That drink took about three years to create and is the chain’s first new holiday beverage in five years in the U.S. and Canada. The company also is bringing back peppermint mochas and caramel brulee coffees this year. Stores in the Pacific Northwest will serve eggnog lattes as well, said Linda Mills, a spokeswoman.
The holidays are an important time for domestic coffee sellers, who seek to lure shoppers in for quick refueling stops and maybe get them to pick up a gift card
while they’re inside as well. Last year, Dunkin’ Donuts got 27 percent of U.S. revenue from the fourth quarter, when it sold red velvet lattes and salted-caramel hot chocolates. Seattle-based Starbucks said its holiday lineup in 2013 helped boost its revenue 12 percent in the three months through December.

Source: Starbucks via Bloomberg Corp. via Bloomberg

Starbucks’ U.S. customers have to wait until Nov. 12 for its new holiday beverage: the... Read More

Both chains’ new creations are indulgent. A medium Dunkin’ cookie latte made with whole milk has 340 calories, while a medium Starbucks caramel brulee latte with 2 percent milk has 430 calories. A small chestnut praline latte has 270 calories.

Online Threat

Recent holiday seasons have been more challenging for coffee sellers and fast-food restaurants as consumers increasingly forgo mall visits for the convenience of shopping online. Starbucks last year saw “softening” traffic growth in December as consumers turned to the Internet and away from brick-and-mortar stores.
“People are shopping more online, but they’re also still visiting stores,” Dunkin’s Costello said. “Consumers are clearly in a cautious mood but are also interested in having the very best holiday that they can.”