Allied Domecq is to partner with new age beverage company Ferolito Vultaggio & Sons to create a non-alcoholic Kahlua iced coffee.

Herbal Enterprises (the licensing arm of Ferolito & Vultaggio) which has developed the new ready-to-drink beverage under a licensing agreement with Allied Domecq will also be responsible for its marketing.

Three different cap colours; red, blue and yellow, are being used on the 15oz jug shaped bottles. But Kahlua Iced Coffee, which is made from 100% Colombian coffee, is available in one flavour.

Managing director for Herbal Enterprises Worldwide, John Balboni, said: "Kahlua is the second largest single liqueur brand in the world and the leading imported brand in the US."

He continued: "We are expecting this product to seriously rival the number one selling iced coffee on the market, Frappuccino."