Yeah. IIRC if you have a bunch of coffee beans the higher quality of those beans, after roasting, are sold as whole beans to premium retailers. The lesser quality beans are sold as medium-grade beans. The lowest quality beans are ground up and sold as coffee grounds/"instant coffee." In all of these processes you get some dust and run-off from grinding, shaking and just general flaked off crud. This stuff is bagged up in giant 50-pound sacks and sold to places that make large amounts of coffee and sell it a cheap price. Then there's the stuff that gets caught in the gears and augers of grinders, settles around machinery and mixes in with simple dust. That's the stuff that's bagged up and sold to McDonald's.
I think you'll find most Instant Coffee makers make a point of using the finest beans they can, Kenco for example claim to use the same quality of bean in Instant as they do for ones that you have to filter/perculate etc..
Might be different in the states however.