Dunkin' Spiked iced coffee, tea coming to stores in 12 states

BOSTON - Dunkin's latest product offers something stronger than a caffeine kick.

The coffee chain that started in Quincy in 1948 announced Monday that "Dunkin' Spiked," a line of boozy iced coffees and iced teas, will hit shelves in just a few weeks.

The new drinks will be coming to stores in Massachusetts, New Hampshire, Maine, Rhode Island, Vermont, Connecticut, Delaware, Florida, New Jersey, New York, Pennsylvania and Texas. The iced tea will be available in late August, while the iced coffee is expected to go on sale in early September. They will not be sold at Dunkin' restaurant locations.

The coffee has an alcohol by volume of 6% and comes in original, caramel, mocha and vanilla flavors. The teas are 5% ABV and include varieties like half tea and half lemonade, strawberry dragonfruit and mango pineapple.

Dunkin' is joining a crowded field of soft drinks going hard. It's part of the growing trend of ready-to-drink beverages hitting shelves as consumers crave new combinations of their favorite flavors.

With the increasing competition, the category is growing: Sales of RTDs amassed more than $10 billion in US sales over the past 12 months, a 7% increase from the prior year, according to a new NIQ report.

However, the Dunkin' brand could help it stand out.

"Like other well known non-alcoholic brands, Dunkin' wants to capitalize on a built-in audience and established brand equity as it pushes its way into alcohol," Duane Stanford, editor of Beverage Digest, told CNN. "This trend is just getting started."

The Dunkin' name will certainly help it stand out in the hard tea category, which is dominated by Twisted Tea, brewed by the Boston Beer Company. Notably, Twisted Tea is now the beer company's largest brand, surpassing Truly, which has seen its popularity fade, and Samuel Adams beer.

The hard tea "maintains a massive share and continues to grow," Dave Williams, vice president of analytics and insights for Bump Williams Consulting, told CNN. "There is certainly evidence that other hard tea brands can find success, but none have been able to rival Twisted Tea for dominance."

Dunkin' President Scott Murphy told CNN that the creation of Dunkin' Spiked means "you can start and end your day with Dunkin', which is a testament to our continuous drive for innovation and understanding our fans' desires."

Stanford said that Dunkin' "has as good a chance as anyone to make that category resonate with drinkers."

However, Dunkin' might find the hard coffee category more challenging, which isn't as popular as other soft drinks going hard. There are only a smattering of brands on sale, like espresso martinins from Kahlua, a jarred cocktail from Beam Suntory's On the Rocks and Loverboy, a canned cocktail from some of the stars of Bravo's "Summer House."

Bigger competitors in the category have also failed. Last year, Pabst Blue Ribbon axed their hard coffee flavor drink because of poor sales. In 2019, a partnership between Molson Coors and La Colombe to sell a "Hard Cold Brew Coffee" didn't resonate with consumers and the drink was discontinued within a year of its release.

It's a relatively undeveloped space for a few reasons, including their rich flavoring that makes it potentially difficult to drink multiple beverages at a time, limiting their appeal compared to fruitier and lighter options.

"Spiked coffees aren't as sessionable as hard teas, seltzers, and ready-to-drink cocktails," Stanford said. "They feel and drink like more of an indulgence item, which inherently has a lower consumption rate than a drink that offers refreshment with the buzz."

This isn't the first time Dunkin' has ventured into the alcohol business. In 2018, Dunkin' released a coffee porter beer with Harpoon. They teamed up again for a line of donut-infused beers and a pumpkin spiced latte ale in 2020.