McDonald's bagged coffee

McDonald's (MCD) will soon start selling ground coffee in bags in Canada, a move that appears to be a test before expanding to the U.S.

The coffee, sold under the McCafe name, will cost about $7 for a 12-ounce bag, reports the Calgary Herald. We knew this was coming, since McDonald's recently filed a trademark registration related to selling ground and whole-bean coffee. The company has 1,100 locations in Canada.

The move was a head scratcher for the Herald, which noted that Starbucks (SBUX) is everywhere in the country and Tim Hortons (THI) "borders on a national symbol." But that's exactly why Canada is a good place to test bagged coffee. If McDonald's can make it there, it can make it anywhere.