In the $2-billion smoothie category, Dunkin’ “has become the No. 1 smoothie retailer in the U.S. in markets where we have a presence” only a little more than a year after the company launched its low-fat-yogurt-and-real-fruit drink line, Scafido says. Although the smoothie is officially classified as a beverage, Scafido points out that it is viewed by many consumers as more of a “snack opportunity rather than a thirst-quencher” or even a meal alternative. Whipped up in the existing Coolatta machines, smoothies required no new equipment additions to the Dunkin’ units.
More than half of the 18-to-34-year-old respondents in a recent survey conducted by Mintel research company said that they had a smoothie in the last month. Scafido noted that the drinkable snack has a strong appeal to mothers with young children (“They can be a good source of Vitamin C and calcium”), particularly as an after-school or before-the-soccer-game pick-me-up, and “sends a signal to all consumers that Dunkin’ Donuts offers many snacking options.”
In April, Dunkin’ added a pineapple-banana-coconut Tropical Fruit version. Mintel and other researchers agree that this was a very astute addition.
“Now that the smoothie market is a proven success, companies are being pushed to the next level—extreme differentiation,” says Mintel’s director David Lockwood. “Similar to the coffee market, smoothie companies need to continue developing innovative flavors and additives to keep consumers engaged in the market.”
Pineapple is currently one of the most popular ingredients for fruit smoothies, according to Technomic, Inc. And, in a recent report, Packaged Facts observed that exotic and tropical fruits, which became popular in 2006, are expected to continue to increase in popularity. That should put Dunkin’s Mango Passion Fruit, Wildberry (strawberries, blueberries, raspberries, and blackberries), and Strawberry Banana smoothies on the right track as well.
Sticking closer to its bakery product roots, Dunkin’ debuted baked-on-site, 4.5 ounce cookies nationwide last fall.
All of this is part of a major makeover strategy that goes beyond the primary doughnuts and coffee menu to include internal and external aesthetics such as a warmer color scheme, the addition of the new high-speed cooking platform, and a revamp of the drive-thru, which already constitutes about 60 percent of the company’s business and is integral to its continued appeal to today‘s freestyle eaters.
Also underway is a major westward- and southward-bound expansion plan that has already included Dallas; Phoenix; Las Vegas; Nashville, Tennesse; Charlotte, North Carolina; Cleveland; Cincinnati; Indianapolis; and Tampa, Florida, with a total goal of around 15,000 stores by 2020. Taken altogether, the changes in Dunkin’s look, and offerings are the most dramatic in the company‘s history and carry enough significance to be described by its management team as a “re-concepting.”
Research tends to back up Dunkin’s concerted attack on the snack category. In a recent report, Information Resources, Inc. (IRI) revealed that one-third of Americans regularly skip meals, often grazing on snack foods as a substitute. More than half (55 percent) of survey respondents said they snacked three or more times a week in the evening, 48 percent in the afternoon and 27 percent in the morning.