Coca-Cola to Acquire Costa Coffeehouse Chain

By Anna Breuer on 31 August 2018
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A Costa Coffee shop in Birmingham on Friday

A Costa Coffee shop in Birmingham on Friday

The Coca-Cola Company announced plans to acquire Costa Limited, a company that operates Costa Coffee, the world’s second largest chain of coffeehouses.

The £3.9 billion ($5.1 billion) tie-up puts Coca-Cola squarely in the coffee business after a failed attempt at a partnership with Keurig several years ago.

“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” said James Quincey, Coca-Cola’s CEO.

Costa Coffee has a strong presence in Europe, Asia Pacific, the Middle East, and Africa. Coke will be acquiring 4,000 retail outlets, a coffee vending operation, and the company’s state-of-the-art coffee roastery.

Coca-Cola will also get Costa Express, which offers barista-prepared coffee on-the-go at gas stations and travel hubs including airports.

The company was founded by brothers Bruno and Sergio Costa in London in 1971 as a coffee roastery. The company began to sell coffee in 1978 in a location on Vauxhall Bridge Road. In 1995, the company was acquired by Whitbread, England’s largest operator of hotels and coffee shops.

Whitbread also owns the Premier Inn chain of hotels. The company said it will use the proceeds from the sale to expand its hotel business.

(Photo: Accura Media Group)

Accura News

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