Coca-Cola considers selling Costa Coffee amid market pressures

Summarised from 2 outlets · Updated 9 Oct, 17:49 · Archive

Coca-Cola is reportedly exploring a sale of Costa Coffee, which it acquired in 2018, after an earlier attempt to offload the chain collapsed.

Coca-Cola is reportedly reconsidering a sale of Costa Coffee, the British coffee chain it acquired from Whitbread in 2018 for $5.1billion. According to Semafor, the US drinks giant is exploring options to unwind the £3.8billion acquisition after struggling to secure acceptable offers earlier this year.

Coca-Cola abandoned an earlier sale process after private equity bids fell below expectations. At least one other prospective buyer also examined a potential deal before withdrawing over concerns about the chain's valuation and future strategy.

Costa faces mounting competition in Britain's coffee market, with budget bakery chain Greggs overtaking it in store numbers to become the country's biggest coffee chain. Despite the uncertainty surrounding a sale, Costa has continued investing in its operations, reopening revamped high street branches and preparing to open a new headquarters in Hertfordshire in January 2027 with capacity for around 300 employees.

How it is being reported

• Coca Cola looking to sell Costa Coffee eight years after £4bn takeoverThe beverage giant is thought to have revived the sales process for Costa, with the chain expected to fall into the clutches of private equity - which could see stores close.This is Money · 9 Oct, 17:05
• Costa Coffee at risk of being sold after Greggs overtakes it as UK’s biggest coffee chainCoca-Cola is reportedly considering selling Costa Coffee again after an earlier deal collapsed.Daily Express · 9 Oct, 13:19

In this story: Coca-Cola · Costa Coffee · Whitbread · Greggs · Hertfordshire

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem