Tea Time for Dunkin' Donuts

Dunkin' Donuts is getting into iced tea. The chain has begun offering freshly brewed peach and raspberry iced tea at its New England stores, and plans for national (US) rollout are set for early next year. No word yet on if the tea will be available at Dunkin’s Canadian locations.

The push is inline with Dunkin's broader quest to quench consumer tastes as it expands across the country and faces stiffer competition in the coffee market ranging from Starbucks to McDonald's.

Iced tea is the new battleground. Since 2001, servings of iced tea at restaurants grew 12.5 percent to 4.5 billion, according to NPD Group. Consumers have turned increasingly to tea as an alternative to soft drinks, and more people are drinking the beverage for breakfast. Restaurant analysts say the focus on freshly brewed iced tea should help drive profits, given its low product costs and growing popularity.