DNKN "Holiday offer" on kcups (33% Premium Pricing discounts)
Here's another data point underscoring the emerging pricing "competition" has only just begun in the SS market. Starting Thursday, Dunkin donuts will be selling their various kcups "through the holiday season" at a price roughly one-third off their "regular price" for this brand preferred by many DNKN customers. Rhetorical, but might other "new competition" referred to by Kelley in Sep and again last week offer similar discounts on this fat margin business? PEET and Whole Foods are not paying GMCR any licensing fees, and they are well positioned to use that margin advantage to step up premium pricing discounts even more than DNKN is here. DNKN is a licensed partner with GMCR, but the margin and operating leverage compression seem bound to become more pressing near term.
From the new DNKN campaign and blitzing on their website among their Holiday gift ideas:
..."beginning on Thanksgiving, November 28, and continuing through the holiday season, guests can purchase Dunkin' Donuts' K-Cup® packs, for use with the Keurig® K-Cup® Brewing System, for the special price of two boxes for $19.99. Both offers are available while supplies last at participating Dunkin' Donuts restaurants nationwide."