Allied Domecq launches coffee war

13 April 2012

DRINKS giant Allied Domecq, better known for Teachers whisky than coffee, has declared latte war on Starbucks in the Seattle company's own backyard.

Allied's Dunkin' Donuts chain believes it can undercut Starbucks with new $10,000 (£5,500) espresso machines and a coffee range launched in New York this week. It will expand the line to the North East and the South in coming weeks.

Dunkin' Donuts chief executive John Luther expects espressos, lattes and cappuccinos to be in 4,000 of its US stores soon, fighting head-to-head with the 5,500 Starbucks outlets.

He justifies his confidence with the lower prices the company will charge for coffee - typically 20% below Starbucks.

Dunkin' Donuts espresso range will come in small, medium and large sizes, rather than tall, grande and venti.

But Starbucks says it is not worried, adding that the experience customers have at its cafes is about more than coffee.

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