Dive Brief:

• Dunkin' partnered with direct-to-consumer paint brand Backdrop on limited-run cans of paint inspired by its brand iconography, according to a news release. The collaboration marks Dunkin's first paint collection.
• Backdrop developed two new offerings in pink and orange that are based on Dunkin's color scheme. They will be sold exclusively through Backdrop's website at $39 apiece. This is the first time Backdrop has produced half-gallon versions of its recyclable, stainless steel cans.
• Dunkin' expanding its lifestyle offerings to the home improvement space comes amid a remodeling boom spurred by the pandemic. The tie-up taps into Backdrop's ethos around making painting fun and accessible.

Dive Insight:

Dunkin' is catering to diehard fans who stand among the many consumers remodeling their homes during the pandemic. People have been sprucing up the living spaces where they're spending more of their time due to lockdown measures, a trend that could continue as remote or hybrid working models outlast the COVID-19 crisis. Young consumers — namely wealthy millennials — have also been buying their first homes in larger numbers and could be interested in a unique paint job.

The tie-up is also an example of how brands are prioritizing unique online partnerships as a way to merge their data and enhance their targeting efforts at a time when increased privacy concerns and moves by digital platforms are introducing challenges to traditional targeting efforts. 

Collaborating with Backdrop signals that millennials are indeed top of mind at Dunkin'. The online paint retailer, along with rival Clare, have been described as among the top millennial-targeted paint brands due to their digital-first approach and focus on simplicity.

Similar partnerships have grown to be a larger part of Dunkin's strategy as it looks to position itself as a lifestyle brand that does more than sell coffee and pastries. In April, the quick-service restaurant teamed with used-car dealer CarMax on a 24-hour test drive promotion. Like houses, cars are in high demand, which has led to a spike in prices for the used category. Dunkin' for several years has also collaborated with brewer Harpoon — another Massachusetts-based company — on beers inspired by its menu offerings.

Beyond its collaborations with outside parties, Dunkin' periodically sells online merchandise, such as baseball caps and T-shirts, themed around occasions like the holidays. For Valentine's Day this year, the company also converted its drive-thru lanes to accommodate wedding ceremonies as COVID-19 measures restricted large in-person gatherings.

Concentrated efforts to connect with diehards demonstrate how Dunkin' is prioritizing loyalty as the restaurant category broadly shifts toward digital and mobile channels. Dunkin' operates a DD Perks rewards program that has promoted benefits like exclusive access to branded swag.