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Coca-Cola Co. is reportedly exploring a potential sale of its Costa Coffee business, seven years after acquiring the British coffee chain for over $5 billion. According to Sky News, the beverage giant has engaged Lazard, a global financial advisory firm, to evaluate strategic options, including divestment.
Sources say Coca-Cola has held preliminary discussions with a small group of potential bidders, including private equity firms. Indicative offers are expected to be received by early autumn, but no final decision has been made, and both Coca-Cola and Costa declined to comment on the matter.
Coca-Cola acquired Costa in 2018 from UK-based Whitbread PLC in a bid to expand into the growing global coffee market and compete with giants like Starbucks and Nestlé. However, integrating Costa into Coca-Cola’s global operations has proven challenging, especially amid shifting consumer habits and increased competition.
Costa Coffee, founded in London in 1971, is one of the largest coffeehouse chains globally, with more than 2,700 outlets in the UK and Ireland, and approximately 1,300 international stores across over 50 countries.
Shares of Coca-Cola closed 0.75% lower at $70.13 on the New York Stock Exchange last Friday but edged up 0.10% in after-hours trading, as reported by Reuters.
A potential sale of Costa Coffee would mark a major strategic shift for Coca-Cola, signaling a reevaluation of its diversification into the hot beverage segment. While the review is ongoing, the outcome could reshape Coca-Cola’s portfolio and its position in the competitive global coffee industry.
