ALBAWABA - McDonald’s is broadening its beverage menu in an effort to grow overall, adding new specialty drinks and energy beverage options that could alter its decades-old partnership with Coca-Cola.
The fast-food behemoth is focusing more on beverages as a key driver of sales growth after consumer demand for more innovative and personalized drink alternatives. The move comes as younger customers are showing more interest in flavored beverages, energy drinks and social media-driven drink trends.
McDonald’s is reportedly planning to add more unique drinks inspired by ideas tested through its CosMc’s business, including flavored refreshers, crafted sodas and energy-based beverages. Some of the new items might be branded outside of Coca-Cola’s portfolio, moving away from the company's typical beverage business.
The move has sparked discussion about what comes next for McDonald’s and its longtime partner Coca-Cola, one of the longest-running collaborations in the food and beverage sector. Coca-Cola is McDonald’s main beverage supplier globally and the two firms have worked closely together for over 70 years.
But industry sources say the partnership is still there despite the changes. McDonald's expects to continue its heavy reliance on Coca-Cola for its drinks business, but is seeking more flexibility to respond to changing consumer tastes and developing market trends.
Analysts say the strategy mirrors increased rivalry in the beverage market, where chains are increasingly moving beyond the typical soft drinks to tap demand for premium, personalized and energy-focused goods.
In the fast-evolving beverage business, McDonald’s is looking to get in the game with a marriage of innovation and one of the most famous corporate partnerships in the industry.
