McDonald’s Smoothies May Boost Category

NEW YORK—McDonald's Corp. is setting out to jolt the smoothie market.

The fast-food giant launches its smoothies nationwide Tuesday, bringing a marketing machine hitherto unseen by the category. The company declined to disclose the budget behind the smoothies' launch, but McDonald's marketing director Sofia Therios calls it a "respectable investment" for the company, which spends more than $1.2 billion advertising annually in the U.S., according to Advertising Age's DataCenter.

McDonald's marketing plans for smoothies include rounds of television advertisements that show dancers depicting the blending and pouring of the frozen fruit drinks. Starting July 22, participating McDonald's stores will hold three national sampling days, part of the reason the company recently told some stores to stop aggressive promotions, like giveaways, in recent weeks so that the chain would have adequate supply.

McDonald's presence alone could boost the entire smoothie market, measured by the research firm Mintel at $2.5 billion in 2007, the most recent year available, something the company is setting out to do. That could potentially prove a boost to smoothie players like Jamba Juice Inc., Starbucks Corp. and Panera Bread Co.

To read the rest of the story, please go to: The Wall Street Journal.