business news in context, analysis with attitude

Dunkin' Donuts announced that it will roll out a line of gourmet coffee and espresso drinks nationally this spring, believing that the democratization of lattes and cappuccinos has reached the point where the products will appeal to its demographic target.

The company has been testing the espresso drinks at a few local outlets. The suggested retail price for a small latte or cappuccino will be $1.79, about 60 cents more than a small cup of coffee. A 4 oz. espresso will cost 99 cents.
KC's View:
Over the past couple of years, Dunkin’ Donuts has been emphasizing its coffee in addition to its doughnuts, but this represents a broader attack on the Starbucks side of the business. The company may be feeling squeezed, with Starbucks on one side and Krispy Kreme on the other…