Utilize the data below to answer the following question:

Ready-to-Drink (RTD) Coffee Market

Overall RTD Market	$ 2.5 billion
Starbucks Share	$875 million 35% share
Dunkin Doughnuts Share	$150 million 6% share
Current Cold Brew RTD Share (multiple brands) Predicted Market Size of RTD Cold Brew	$50 million (2%) $200 million (8%)

Coca-Cola and Dunkin Doughnuts have a strategic alliance to distribute Dunkin branded coffee to consumers via convenience, discount and grocery stores. Both are highly interested in the growing cold brew market. Coke also is interested in testing expansion of its Peak Gold brand into the cold brew coffee market. Coke is testing ready-to-drink cold brew with both brand partners in US southern markets to determine what path to take in northern markets for a spring launch. They are testing Peak Gold and a Dunkin Doughnuts RTD cold brew, both in 3 flavors. (Black/Espresso Cold Brew, Caf Mocha Cold Brew, and Vanilla Almond). Coke only wants to introduce cold brew coffee in one brand to optimize distribution capability, and they believe the market will only grow to a total of $200 million (4x current, 300% growth.) Therefore, at their estimated share, it would only justify one brand entry into the market.

Both Coke and Dunkin are concerned about cannibalization of the current 4-flavor lineup of Dunkin Iced Coffee distributed by Coke with this introduction.

Test results showed Dunkin to get an impressive 25% out of the predicted $200 million growing RTD cold brew market, but 75 % of that volume was cannibalization of the current Dunkin RTD line. In the Peak Gold test market, they got 10 % of the RTD cold brew market, but did not cannibalize any Dunkin Brand. Project test results and estimate the volume of net new business (revenue less cannibalization) that would be earned in the rollout of each brand. Which brand provides the greater net new business and how much volume is predicted?

Group of answer choices

a.Peak Gold at $20 million net new business.

b.Peak Gold, at $25 million net new business.

c.Information is inadequate to choose an optimal brand.

d.Dunkin Doughnuts Brand, with $50 million net new business.

e.Dunkin Doughnuts Brand, with $12.5 million net new business