McDonald's plan to expand its coffee-based offerings to include cappuccinos, lattes, mochas and ice-blended drinks could boost the business of F. Gavina & Sons, a Vernon-based specialty coffee company that supplies the fast food chain.
All the coffee that McDonald's sells in its L.A.-area restaurants comes from F. Gavina & Sons. McDonald's also uses Gavina coffee at other restaurants across the western U.S.
"Our business is definitely going to increase," said Leonor Gavina-Valls, a vice president at the company.
McDonald's Corp. last week announced that it will be introducing barista-staffed coffee bars with prominently located espresso machines at all its nearly 14,000 domestic locations this year.
The company expects the new beverage offerings, which will include smoothies and bottled drinks, will increase revenues by $1 billion. For 2006, the company's annual sales totaled $21.6 billion.
If the prediction holds ups, coffee suppliers could see an increase in business from the company.
"This is a great opportunity to further increase the awareness of espresso-based coffee producers and other specialty coffee products among the public," said Ric Rhinehart, executive director of the Specialty Coffee Association of America, a Long Beach-based industry group.
Marissa Medina, a Los Angeles-based spokesperson for McDonald's, said that no decision has been made regarding suppliers for the coffee bars.
But she said via e-mail that in markets where the coffee bar concept has been tested, such as Kansas City, the company relied on existing suppliers.
F. Gavina & Sons has been supplying McDonald's restaurants with coffee since 1985, and the relationship between the relatively small family-run company and the world's largest restaurant chain has grown over the years.
After McDonald's began offering premium drip coffee, which meant a change in the type of coffee beans used and the roasting process, the fast-food giant bought more coffee from F. Gavina & Sons.
The company originally provided the old coffee blend to the chain's Southern California locations, then started shipping the new premium blend to McDonald's locations in Texas, Washington, New Mexico and Oklahoma.
Gavina-Valls said McDonald's represents 12 percent of the company's overall business. Last year, revenues topped $100 million.
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