NEW YORK (TheStreet) -- Dunkin' Brands (DNKN) in partnership with Coca-Cola (KO) will introduce its own ready-to-drink coffee in grocery stores, convenience stores, mass merchandisers, as well as Dunkin' Donuts restaurants, the company announced on Thursday.
Dunkin Brands CEO Nigel Travis joined CNBC's "Closing Bell" this afternoon to discuss the new venture.
Starbucks (SBUX) and other Dunkin Brands competitors already offer ready-to-drink coffee and the company is excited to finally capture some of that market, Travis said.
"It's a segment where we know that our customers are out there drinking other people's coffee, and you can guess some of the brands that they're drinking. That's bad news for us, so we decided we've got to stop it," he explained.
The new convenient beverages are aimed at millennials.
"This is a long-term decision. We believe this is the way the consumer is going. We believe that our consumers want to have this ready to drink coffee to take it to work, take it home," he explained.
Coca-Cola is in charge of both distributing and marketing the new line of beverages. "We have teamed up with the best company in the world to do this," Travis added.
"You're not going to spend a dime marketing this?" CNBC's Bill Griffeth asked.
"It's an asset-like model so this is a very good deal for us," Travis replied.
The company believes people will still buy iced coffee and other beverages from Dunkin' Donuts restaurants, but this is a "way of underlining our leadership in the segment," he said.