Coca-Cola announced Friday, August 31, that it will acquire the British coffee chain Costa, the second-largest coffeehouse in the world, for about US$5.1 billion, as soda companies reconfigure their businesses while consumers shift awayfrom sugary, carbonated drinks.
The Atlanta-based beverage giant described the proposed deal as a necessary entryway to the expanding global coffee market.
This is the second transaction involving a consumer products company and a coffee retailer after Nestlé struck a US$7.15 billion global deal in May to sell Starbucks’ coffee products outside its cafes—in shops and supermarkets.
Coca-Cola announced it was open to additional expansion into new markets and would consider new product formats following the acquisition of Costa. “The acquisition will expand the existing Coca-Cola coffee lineup by adding another leading brand and platform. Costa also gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” Coca-Cola President and CEO James Quincey said while announcing the deal.
Full Content: The New York Times, Business Standard
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