UPDATE: Procter & Gamble To Make, Sell Dunkin' Donuts Coffee

Dow Jones
August 13, 2007: 11:16 AM EST

NEW YORK (Dow Jones) - Consumer products giant Procter & Gamble Co. said Monday it will produce a Dunkin' Donuts line of coffee for sale at retailers ranging from Wal-Mart Stores Inc. to Kroger Co., as the East Coast coffee chain seeks to expand to new U.S. markets.

P&G (PG) , the maker of Folgers and Millstone coffee, will begin selling the packaged Dunkin' Donuts coffee to 40,000 retail outlets nationwide by mid-August and broadly in September. Cincinnati-based P&G said the deal will be structured through a licensing arrangement, where typically companies like P&G pay brand owners a percentage of sales as royalty payments. P&G spokesman Bryan Brown declined to specify the terms.

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