Coca-Cola to Open 'Coffee Shop' in Toronto: Report

Coke may be expanding into coffee shops

Coca-Cola North America is reportedly launching a retail store in Canada that could be sticking a sharp elbow into Starbuck's coffee pots.

The beverage giant is reportedly opening a 4,000-square-foot retail space in Toronto to serve coffee-related products, a possible challenge to Starbucks, The Toronto Star reported Tuesday.

Officials at Coca-Cola could not be reached for comment.

Coca-Cola dipped its toe into the coffee market with the introduction of Coca-Cola Blak, which hit U.S. retail stores this week. The lightly carbonated, mid-calorie beverage is a blend of Coca-Cola, real coffee and natural flavors. It is designed to appeal to adults. The drink bowed in France and was expected to roll out across several other countries, as well as the U.S., this year.

If Coke's venture into the coffee-related retail market comes to fruition, it wouldn't be the first major player to do so. McDonald's already has its line of upscale coffee shops, called McCafés. It opened its first McCafé in 2003.

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