In a $7.6 billion deal, Coca-Cola has purchased the UK’s largest coffee chain, Costa Coffee. The agreement includes the acquisition of 4000 retail outlets, vending machines, in-home products and a roastery. The addition will firmly establish Coca-Cola’s position in the trending hot beverage category.
The purchase of Costa Coffee will affirm the beverage giants’ position beyond fizzy drinks and will allow the company to gain access to the coffee chains vast platforms in the Asia Pacific, the Middle East, Africa and across Europe. One of the primary attractions for Coca-Cola was Costa’s strong expertise in supply chain operations which includes Costa’s vending, distribution and sourcing systems.
Coca-Cola CEO James Quincey said: “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 segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”
“Costa is a fantastic business with committed and passionate associates, a great track record and enormous global potential. Being part of the Coca-Cola system will enable us to grow the business farther and faster,” added Costa managing director Dominic Paul.
This is not Coco-Cola’s first coffee acquisition. The company also owns Georgia Coffee which is estimated to be the highest grossing ready-to-drink coffee product in the world. British multinational group Whitbread previously held Costa Coffee.