NEW YORK (AdAge.com) -- As if drubbing the hamburger competition wasn't enough, McDonald's selected a number of non-carbonated beverage opportunities built up by a handful of chains and has built respectable facsimiles of all of them. Now armed with everything from lattes to smoothies, McDonald's is ready to fight for a bigger piece of the $153 billion U.S. beverage market. In addition to quality products, McDonald's boasts 14,000 locations and $1.2 billion in U.S. advertising spending, as estimated by Ad Age.
"McDonald's clearly wants to become more of a beverage destination," said John Sicher, editor and publisher of Beverage Digest. "McDonald's franchisees have been unhappy in years past seeing consumers bring in beverages from convenience stores either into their restaurants, or seeing them in cars go through the drive-thru."
Next month, McDonald's will roll out smoothies, which it has been testing for more than a year, with national advertising. The products follow lattes, cappuccinos, hot cocoa and frappes, McDonald's take on Starbucks' iconic Frappuccino.