Coca-Cola is reportedly considering selling Costa Coffee again, just months after an earlier attempt to offload the British chain collapsed. The US drinks giant is said to be exploring options to unwind its £3.8 billion acquisition of Costa, which it bought from Whitbread in 2018 for $5.1 billion.
According to a report by Semafor, Coca-Cola is once again weighing a sale after struggling to secure an acceptable offer earlier this year. This comes as Costa faces increasing competition in Britain's coffee market, with budget bakery chain Greggs overtaking it in store numbers to become the country's biggest coffee chain.
Background of the acquisition
Coca-Cola bought Costa in 2018 as part of an effort to expand its presence in the global coffee market and diversify beyond its traditional soft drinks business. However, the company reportedly abandoned an earlier sale process after offers from private equity firms fell below its expectations.
At least one other prospective buyer is also said to have examined a potential deal before walking away over concerns about the chain's valuation and future strategy, according to Semafor. It remains unclear how much Coca-Cola would seek for Costa if it decides to formally put the business back on the market.
Continued investment and future plans
Despite the reported uncertainty surrounding a possible sale, Costa has continued investing in its operations. The chain reopened a number of revamped high street branches earlier this year.
It is also preparing to open a new headquarters in Hertfordshire in January 2027, with space for around 300 employees. Costa chief executive Philippe Schillee said the planned headquarters “really signals our confidence in the business”.
Coca-Cola paid billions to enter the coffeehouse market only less than a decade ago, but the company's renewed interest in exploring a deal suggests it may be reassessing Costa's place within its wider business, although no final decision has been confirmed.
