McDonald’s® Canada Accelerates Beverage Growth Strategy with National Launch of McCafe Brand

Quick-service leader builds on brewed coffe success and rolls out McCafe premium espresso-based beverages across the country

TORONTO, ON (November 7, 2011) – McDonald’s Canada is taking a major step today in its beverage growth strategy and building on its strong brewed coffee success with the national launch of the McCafé brand and the introduction of premium espresso-based beverages in the majority of its restaurants. The expansion of the McCafé brand and its product offering is part of the company’s goal to elevate its coffee portfolio and to become Canada’s favourite destination for great food and beverages.

“In just a few years, coffee has joined our iconic offerings like the Big Mac® and World Famous FriesTM as a strong driver of the McDonald’s business,” said John Betts, President and CEO of McDonald’s Canada. “We see an opportunity to continue expanding our beverage platform and efforts to gain a greater share of the very sizeable Canadian beverage market.”

In just two years, McDonald’s Canada has doubled its brewed coffee sales and is on track to serve Canadians approximately 200 million cups of its Premium Roast Coffee this year. With a strong coffee foundation, McDonald’s Canada recognized an opportunity to serve what it believes is an unmet need, for existing and new customers, in the rapidly growing Canadian specialty coffee segment. In addition to extending its McCafé product portfolio, the company’s recent restaurant re-imaging initiative gave McDonald’s Canada a unique opportunity to create a defined space for McCafé in-restaurant, creating a brand within a brand at the point-of-sale.

“The McCafé brand is a game changer for our business and the biggest initiative we’ve undertaken since we revolutionalized the way people eat breakfast on-the-go with the introduction of the Egg McMuffin® over 30 years ago,” added Betts. “We believe McCafé will drive our beverage and food business to unparalleled heights and solidify McDonald’s as an indisputable leader in the Canadian quick-service restaurant arena.”

The McCafé authentic espresso-based beverage offering includes cappuccinos, lattes, Americanos, espressos and mochas. McCafé premium espresso-based coffee begins with 100% Arabica beans, fresh ground in-restaurant for every cup and the choice of 2% or skim milk. Beverages can be customized by adding extra espresso or flavour shots like caramel, vanilla or sugar-free vanilla syrup, as well as real whipped cream for those who like their beverage a little richer. McDonald’s Canada uses only 100% premium Arabica beans and sophisticated Swiss-made equipment to ensure consistent and great tasting coffee every time. More McCafé product information is available at the company’s newly redesigned website: www.mcdonalds.ca.

“McCafé is an integral part of how McDonald’s Canada is transforming and elevating its brand and the customer experience,” added Betts. “Our goal is to fuel stronger customer connections and to be the place Canadians think of first when they’re hungry or thirsty.”

As of today, more than 870 McDonald’s restaurant locations coast-to-coast carry McCafé espresso-based beverages. The majority of the company’s remaining restaurants will introduce McCafé by the end of 2012.

The introduction of McCafé premium espresso-based beverages will be supported by one of McDonald’s Canada’s largest multi-channel advertising campaigns. As part of the campaign, an estimated 95 per cent of Canadian households, or roughly 12 million Canadians, will get a McCafé coupon mailer over the next week, including a free small McCafé specialty beverage and a buy one, get one free coupon offer, among several other coupons.