Josh Kosman of the NY Post reports thats Dunkin’ Donuts kicked off its IPO road show by brewing some single-serve cup coffee for investors.
The doughnut-and-coffee chain, which plans to raise as much as $460 million through its share offering, showed off its new Dunkin’-branded single-portion K-cups at a meeting held today at New York’s St. Regis Hotel.
In February, Dunkin’ announced a deal with Green Mountain’s Keurig brewers to sell packs of 14 K-Cup servings at its coffee shops starting this summer.
While single portions are a booming area of the coffee business, the strategy is not without risks for Dunkin’, which could see consumers trade in their regular cup of morning Joe for K-cups.
Dunkin’ CEO Nigel Travis told the audience of 400 to 500 people yesterday that investment bank JPMorgan conducted a study to address concerns about cannibalization.
“We showed remarkably little cannibalization from selling K-Cups in our stores,” Nigel said, according to Barkan, who was there.
A Dunkin’ spokeswoman did not return calls.