USA based Coca- Cola is set to invest £3.9 billion ($ 5.083 billion) to acquire UK based Costa Coffee entering the coffee market. Whitbread which owns Costa coffee chain is focusing instead on growth opportunities for its Premier Inn hotel business in UK and Germany. Whitbread acquired Costa coffee in 1995 for £19 million ($24.8 million) having only 39 shops which successfully has grown to the UK’s largest coffee shop.
Coca-Cola intends to make Costa Coffee into a leading multi-channel and international coffee brand.
According to Coca-Cola President and CEO, James Quincey:
“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide. Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform. I’d like to welcome the team to Coca-Cola and look forward to working with them.”
The acquisition is expected to complete in the first half of 2019.
About The Coca-Cola Company
The Coca-Cola Company, which is headquartered in Atlanta, Georgia, is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. The company is known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.
The Coca-Cola formula and brand were bought in 1889 by Asa Griggs Candler , who incorporated The Coca-Cola Company in 1892.
About Costa Coffee
Founded in 1976, Costa Coffee line of business includes the retail sale of prepared foods and drinks for on- premise consumption. Costa Coffee is headquartered in the UK. A subsidiary of Whitbread, Costa Coffee has over 2400 shops in the UK, and over 1400 stores in 31 international markets and over 8000 Costa Express self-serving units.