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McDonald鈥檚 Corp. will announce today that its long-awaited, full-tilt entrance into the $11 billion-plus U.S. retail coffee market will take place early next year when it rolls out 惭肠颁补蹿茅 coffee in ground, whole-bean and single-cup forms through a partnership with Kraft.

鈥淲e think this will increase the awareness of the 惭肠颁补蹿茅 brand beyond its current in-restaurant strength and that will encourage more people to try it. I think it allows us to tap into that very large base of coffee drinkers who now make their coffee at home. This will give us access to them as well,鈥� Greg Watson, senior VP, McDonald鈥檚 U.S. Menu Innovation told BurgerBusiness.com.

Retail coffee is hardly an inconsequential market. Data from聽聽shows that the average American adult spent $21.32 a week on coffee in 2013.聽聽estimates that 77% of the market ($37 billion) is coffee consumed at foodservice. That leaves 23% or an $11.2 billion market for coffee sold at retail. McDonald鈥檚 could use a nice chunk of that market.

Kraft has 鈥渂een a wonderful partner in this process. They bring deep coffee expertise and a great distribution network and manufacturing capabilities,鈥� Watson said. 鈥淚t鈥檚 a strong marriage between the two brands.鈥� McDonald鈥檚 gave away 惭肠颁补蹿茅 coffee over a two-week period ended April 13 this year to increase awareness and trial and to blunt Taco Bell鈥檚 introduction of a breakfast menu.

In Oct. 2012 BurgerBusiness.com was the first to聽聽that McDonald鈥檚 had trademarked its 惭肠颁补蹿茅 name for whole bean and ground coffee. It began selling 惭肠颁补蹿茅 coffee in Canada in November 2012. Earlier this year, McDonald鈥檚聽聽the bagged coffee at a few supermarkets.

Packaged in 12-oz. bags, 惭肠颁补蹿茅 will be offered ground in Premium Roast, Breakfast Blend, French Roast, Colombian, Premium Roast Decaf and French Vanilla and Hazelnut plus a French Roast Whole Bean. Watson said he expects pricing to be roughly the same聽 as the聽$7.29聽for a 12-oz. bag at which it was sold in the test markets.

Single-Cup (pod) coffee will be offered in Premium Roast, French Roast and Premium Roast Decaf varieties.聽聽reports U.S. consumers bought $3.1 billion worth of coffee pods in 2013, compared with $132 million in 2008. One-quarter of Americans now own single-serve brewing systems such as the Keurig. Other foodservice brands鈥攊ncluding Starbucks, Tim Hortons, Dunkin鈥� Donuts and Krispy Kreme鈥攁lready market their coffee in pods as well as ground.

Packaging (shown at right) developed for the U.S. tests and different than that used in Canada will be used for the national rollout. 鈥淲e found strong acceptance of that package and we think it really represents the brand well,鈥� Watson said.

Premium Roast鈥攖he coffee served in McDonald鈥檚 restaurants鈥攚as the top seller during the test marketing, but it did not cannibalize restaurant sales. 鈥淚n our test we didn鈥檛 see any impact on our restaurant coffee business,鈥� Watson said. Availability won鈥檛 be national from any one day on, he said. Rather there will be a rollout to stores within a short time frame early in 2015.

Initially, the bagged 惭肠颁补蹿茅 coffees will be sold only through grocery, mass merchandise, club and drug retailers and will be not be available in McDonald鈥檚 restaurants. Asked if that might change down the road, Watson said, 鈥淲e鈥檒l continue to look at that; it is definitely a possibility for the future.鈥�

Asked how many pounds of 惭肠颁补蹿茅 coffee McDonald鈥檚 hopes to sell in 2015, Watson said simply, 鈥淟ots.鈥�