Coca-Cola explores sale of Costa Coffee, source says
U.S. soft drinks company Coca-Cola is working with investment bank Lazard to review options, including a potential sale, of British coffee chain Costa, a source familiar with the matter told Reuters on Sunday.
Coca-Cola did not immediately respond to a request for a comment outside regular business hours. Costa, and Lazard did not immediately respond to requests for comment.
The company has held initial talks with a small number of potential bidders for Costa, including private equity firms, Sky News first reported, citing unidentified sources.
Indicative offers are expected in early autumn, but a sale is not definitive, Sky reported.
Coca Cola acquired Costa Coffee in 2018 for over $5 billion, to strengthen its position in the global coffee market, competing with Starbucks and Nestle.
A potential sale of Costa Coffee which operates in 50 countries, would add onto the wave of dealmaking in the packaged food space which has witnessed robust growth as companies seek scale to weather the impact of price inflation and consumers shopping for healthier options.
In an earnings call last month, the Coca-Cola CEO James Quincey hinted at changes to Costa’s operations, saying “Our investment in Costa is not where we wanted it to be from an investment hypothesis point of view.”
“We’re in the mode of reflecting on what we’ve learnt, thinking about how we might want to find new avenues to grow in the coffee category, while continuing to run the Costa business successfully.”
In the United States, food companies are seeking healthier substitutes as they respond to Health Secretary Robert F. Kennedy Jr.’s Make America Healthy Again campaign. In July Coca-Cola had agreed to use real cane sugar in the United States.
Related news
A star is born – say hello to dirty soda!
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Ágnes Topor: “Many are unaware of the sales-boosting effect of vouchers”
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Ben Stiller gets into the better-for-you soda space
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Related news
KSH: retail turnover in August exceeded the same period of the previous year by 2.4 percent and the previous month by 0.8 percent
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >NGM: purchasing power is increasing, retail trade is expanding – family tax cuts and food vouchers for pensioners are further strengthening turnover
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >K&H Analyst Commentary: There is still room for expansion in Hungarian stores
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >