The world's largest hamburger chain is preparing to enter the energy drink and specialty soda market. According to informed sources and company documents, McDonald's plans to introduce a Red Bull Dragon Fruit energy drink in its U.S. locations later this year as part of a comprehensive upgrade to its cold beverage menu.
Documents indicate that the new beverages are scheduled to launch next month, including a Dirty Dr Pepper soda and a Mango Pineapple Chiller specialty drink. The company's line of energy drinks is expected to go on sale starting in August.
The fast-food giant has been planning an expansion of its beverage offerings for years, which included testing drinks like Sour Cherry Energy Burst and Blackberry Mint Green Tea at its short-lived concept store, CosMc's.
According to the documents, McDonald's intends to price the new beverages lower than competitors such as Starbucks, Dutch Bros, and Sonic.
McDonald's anticipates that the new drinks will deliver high profit margins for its franchisees, who operate the majority of its stores. Insiders noted that franchisees have invested thousands of dollars per location in new equipment to prepare the beverages, aiming to boost sales without compromising service speed. McDonald's stated that it incorporated feedback from store operators when developing the optimal beverage preparation methods.
As Americans increasingly seek caffeine and small indulgences beyond just coffee and tea, sales of energy drinks and specialty sodas are growing rapidly.
To meet demand for so-called "dirty sodas" and fruit-flavored specialty drinks, emerging chains like Swig have expanded significantly in recent years. Dutch Bros has risen to become the third-largest coffee chain in the U.S., partly thanks to its energy drink offerings.
Major restaurant chains are racing to catch up. In March, Taco Bell added Mountain Dew Baja Blast Dirty Soda and Tropicana Original Dirty Lemonade to its permanent menu, part of the brand's effort to build a $5 billion beverage business by 2030.
Starbucks also launched caffeinated chilled specialty drinks this month and now offers the option to add energy concentrate to existing fruit-based beverages.
McDonald's has expressed its ambition to capture a larger share of the global beverage market, which is valued at over $100 billion. In 2023, the company introduced its secondary brand, CosMc's, to gauge consumer interest in novel beverages. After closing CosMc's last year, McDonald's began testing new drinks in approximately 500 stores starting in September.
Charlie Newburger, McDonald's Global Beverage Lead, stated that test results showed the company needs a diverse drink lineup to stand out in the crowded beverage market. The tests also revealed which products consumers did not favor, such as the matcha or turmeric-flavored lattes previously sold at CosMc's.
“What consumers want is a small treat, a little companion for their day,” Newburger said last year. “These fit perfectly with our strengths.”
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