A PYMNTS Company

UK: Coca-Cola is buying Costa Coffee for US$5.1b

 |  September 2, 2018

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 TimesBusiness Standard

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.