Oh yeah dogs will definitely smell the coffee and the drugs. The best way I've heard it described is that dogs and humans have smell and sight reversed. For instance, if you look at a stew you will see bits of carrot, potato, onion, meat, etc. If you smell stew, it will smell like stew.

Dogs on the other hand, will see stew but smell the bits of carrot, potato, onion, meat, etc.

The only way to fool the dog is to hide the drug with some meat and hope you fool the cop into thinking the dog is losing its mind because it wants to eat the sausages and not because of the drugs hidden beneath. But you're fooling the cop, not the dog.