• Ad Age, Monday, June 28, 2010 10:40 AM

Emily Bryson York takes a look at McDonald's burgeoning efforts to become a beverage destination, stealing share from the likes of Starbucks and Dunkin' Donuts. It will be a huge reversal, as John Sicher, editor and publisher of Beverage Digest, tells her.

"McDonald's franchisees have been unhappy in years past seeing consumers bring in beverages from convenience stores either into their restaurants, or seeing them in cars go through the drive-thru," he says.

Smoothies, which the chain has been testing for a year, roll out with a national ad campaign next month. McDonald's is also looking at areas like frozen juice blends, with a test of frozen strawberry lemonade in a handful of markets, Bryson York reports. The step-by-step approach, which includes coffee beverages, has been deliberately deliberate. "With some things we thought we first had to build up our credibility," says Alex Conti, senior director-menu management at McDonald's USA.

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