McDonald's To Sell Bagged Coffee In Grocery Stores

Looks like McDonald's is slowly encroaching on Starbucks' territory; the burger chain has announced that they've partnered up with Kraft Foods Group Inc. to test McCafé-branded bagged coffee in retail locations next year.

According to Reuters, the McCafé coffee will hit retail locations in select U.S. cities next year, including whole bean, ground, and "single-cup" products. And while the company has yet to disclose pricing information, McDonald's did start selling McCafé coffee in Canada retail locations last year, going for $7 for 12 ounces.

McDonald's has been expanding its McCafé options, this year introducing a Starbucks-inspired pumpkin spice latte, and this new option is a way to build "on the momentum of our McCafé beverages in our restaurants by expanding these options," McDonald's said in a statement. No word on which test markets will receive McDonald's bagged coffee first, but Dunkin' and Starbucks have yet another competitor, not to mention Keurig and Nespresso, considering the single-cup options.