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Posts with tag premium beverages

McDonald's sees success with Angus beef and iced coffee

Encouraged by sales of its Angus beef burgers in southern California, McDonald's Corp. (NYSE: MCD) is planning to expand its test marketing of the premium burgers to New England.

McDonald's comes late to the Angus burger trend. Rivals Burger King Holdings, Inc. (NYSE: BKC), Hardees and Carl's Jr. -- the latter two part of CKE Restaurants, Inc. (NYSE: CKR) -- have been selling the premium burgers for years. In fact, Hardees has just announced a new addition to its menu, a patty melt style Thickburger, also made with Angus beef.

The new burgers are part of McDonald's ongoing efforts at revitalization. Those efforts have included the introduction of new beverage choices, such as iced coffee, which is also expected to spread throughout the U.S. soon. Another part of that effort is a new advertising campaign, emphasizing career opportunities at McDonald's -- no doubt to try to change its image as a source of low-paying, dead-end jobs.

The revitalization appears to be working. Back in April, McDonald's reported a strong quarter, especially internationally. The share price has risen since then, and reached a 52-week high this morning.

Fuze acquisition pits Coke v. Pepsi in ritzy juice war

fuze juiceSome mornings, I barely recognize The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) from their late-twentieth-century cola wars. Do you remember when everything was about Coke vs. Pepsi taste tests? My how times have changed. Now both beverage companies are facing off in battle royale: premium juices and teas.

Teas? If I told you this in 1987, you would have laughed so hard your acid-wash jeans split open (you know, they're tight from all the Cherry Coke Classic you're drinking!). But it's true. The latest news: Coke has purchased juice and tea maker Fuze Beverage LLC in a deal valued by the Beverage Digest at around $225 million. The company makes vitamin-enhanced juice-flavored drinks and WaterPlus enhanced waters, all which sell at a premium price point (but not quite as premium as Naked Juice, which Pepsi purchased for roughly twice the price in November).

This is just one more volley in the war for the healthy-conscious, premium juice beverage consumer -- the one who's eschewed sodas in favor of low-calorie and also low-sugar teas and juices that actually contain fruit juice. Cherry Cola does not, it must be remembered, count as a serving of fruit, and as more schools ban soda from vending machines, and more customers demand healthful offerings, Coke and Pepsi will continue to battle.

I still call Pepsi a winner, with tastier, more truly health-conscious offerings, and wonder how far away from a deal with the makers of Honest Tea is Pepsi? Who will send the next salvo in the good-for-you-too beverage battle?

[Photo Terry Johnston]

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Last updated: November 22, 2008: 03:35 AM

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