Coca-Cola to buy Costa Coffee for £3.9bn

Costa Coffee

The £3.9-billion (US$5.1-billion) sale of the Costa Inc. coffee chain to the Coca-Cola Company began brewing when Whitbread Group PLC's boss Alison Brittain crossed paths with the chief executive of the soft-drinks giant at a conference.

"Coca-Cola doesn't have a broad, global portfolio in this growing category", Quincey said in a blog post, highlighting Costa's retail footprint, roastery, supply chain and Costa Express vending system, which the company plans to expand.

Joining the Coca-Cola portfolio, Costa is a leading coffee brand first founded in London in 1971 that has since grown to include almost 4,000 retail outlets, a coffee vending operation, roastery, and home-brewed coffee formats.

Coca-Cola has agreed to buy the world's largest coffee chain Costa Coffee, which has more than 3500 coffee shops around the world.

The Coca-Cola Company today announced it has reached an agreement for the acquisition of London-based coffee company Costa Limited.

The deal is subject to the agreement of Whitbread's shareholders and various other approvals, including from anti-trust regulators.

Costa, which has more than 2,400 United Kingdom shops and a further 1,400 in 30 countries, is likely to see more vending machine coffee sales and the creation of "ready to drink cold brew coffees".

P Chidambaram Sceptical Over GDP Growth Prospects In Coming Year
The government also revised the core sector growth figure for June to 7.6% and for May to 4.3%. This is the highest economic growth for a quarter recorded in over two years.

George Lawrie, principal analyst at Forrester Research, said that Coke can use Costa stores to help sell its other products, including juice and water, directly to consumers, rather than through a grocery store or gas station.

Whitbread bought Costa in 1995 for 19 million pounds.

Coca-Cola is getting a $5 billion shot of caffeine. The acquisition, Coca-Cola's biggest in eight years, points to bold bets the company is willing to take as it seeks alternatives to fizzy drinks, say experts. That makes India among the few markets in which Costa Coffee is aligned directly with a PepsiCo bottling partner. JAB, the Luxembourg-based holding company that owns brands like Krispy Kreme and Peet's Coffee, bought United Kingdom sandwich and coffee chain Pret A Manger in May.

"Costa is a lovely company and therefore there were clearly suitors for that company and we didn't think any of them were wearing the right suit and driving the right auto", she said, declining to identify the firms. Coke's current RTD coffee portfolio in the US includes products from premium Italian roaster illy, cold brew coffee from Gold Peak, and a line of bottled iced coffees and frappes produced under partnership with the McDonald's McCafe brand.

The sale will allow it to focus on its faster-growing Premier Inn Hotel business.

While this is a landmark deal for Whitbread, it is also a significant move for Coca-Cola, taking it into hot beverages for the first time and, it hopes, providing the growth for which its investors have been crying out.

Related news:

Hot News

isis-killer-beheading-video-story-top Swiss star makes interesting claim about 2008 US Open win
Sep 02, 2018 - 03:10
They'll see him again against Kyrgios, who burst onto the scene with a win against No. 1 Rafael Nadal in 2014 at Wimbledon . He even has one posing with the tiniest member of the tennis fraternity, Olympia Ohanian, the daughter of Serena Williams.

isis-killer-beheading-video-story-top New iPhone XS leaked ahead of Apple’s 12 September reveal
Sep 02, 2018 - 02:24
The new Apple Watch models will include larger screens that cover almost the entire front of the watch. Apple shares rose 1.5 percent to $226.37 on Thursday afternoon in NY .

isis-killer-beheading-video-story-top Puerto Rico "could have been better prepared" for hurricane
Sep 02, 2018 - 01:40
A judge says the federal government can end a temporary housing vouching program for hundreds of Puerto Rican hurricane evacuees. Additional research must be done to understand how the hurricane was involved in the excess deaths identified in this study.

isis-killer-beheading-video-story-top Iran asks UN's highest court to suspend United States sanctions
Sep 02, 2018 - 01:27
The Ayatollah also said Iran could terminate the 2015 nuclear deal ahead of the impending oil embargo from the U.S. Lawmakers dissatisfied with the president's replies voted to reject four out of five of them.

isis-killer-beheading-video-story-top Carabao Cup draw: Ball numbers revealed - what clubs have reached third round?
Sep 02, 2018 - 01:22
Arsenal , runners-up to Pep Guardiola's City at Wembley in February, will host Championship Brentford in a London derby. Holders Man City are now the favourites to win the Carabao Cup at 10/3, with Chelsea and Liverpool both at odds of 6/1.

isis-killer-beheading-video-story-top Manchester United Jose Mourinho defends record I am one of the greatest
Sep 01, 2018 - 05:45
I am the only manager in the world that won in Italy, Spain and England, and by winning eight titles, not small titles or countries.

isis-killer-beheading-video-story-top Nintendo Mobile JRPG Dragalia Lost Coming Stateside
Sep 01, 2018 - 05:27
Dragalia Lost , Nintendo's latest foray into the mobile gaming market, will be coming to the United States on September 27. The website also announced that the "Dragalia Lost Mobile Direct" presentation will stream on Wednesday at 11:30 p.m.

isis-killer-beheading-video-story-top U.S. will 'cut all funds to United Nations agency for Palestinian refugees'
Sep 01, 2018 - 04:43
In Gaza, the Islamist group Hamas condemned the U.S move as a "grave escalation against the Palestinian people". The US has remained UNRWA's major benefactor and an end to American support for the agency could prove fatal.

isis-killer-beheading-video-story-top Modric beats Salah, Ronaldo to 2017/2018 UEFA best player award
Sep 01, 2018 - 03:24
Luka also won the award for the "Best Midfielder of Champions League " in the 2017/18 season, reports Index.hr on August 30, 2018. Atletico Madrid , AS Monaco and Borussia Dortmund were drawn together in an evenly-balanced Group A completed by Club Bruges.

isis-killer-beheading-video-story-top Apple announces special event for September 12
Aug 31, 2018 - 03:16
So, if you love all things Apple, it seems September 12 is the date you definitely need to put in your diary. Reports suggest that the new A12 chipset will be 20 per cent faster and consume 40 per cent less power.

isis-killer-beheading-video-story-top MSNBC Guest Thinks DeSantis 'Monkey' Comment as Bad as 'N-Word'
Aug 31, 2018 - 03:14
In an appearance on MSNBC's "Meet the Press Daily", Gillum told host Chuck Todd that the voters of Florida are "better than this". DeSantis also came out fighting, criticizing Gillum as "way, way, way too liberal for the state of Florida".

isis-killer-beheading-video-story-top Southgate Announces England Squad For Nations Cup Fixture
Aug 31, 2018 - 02:26
He is a good young player. "Those guys are older and - in a couple of their cases - aren't playing much with us". Gomez, who missed the World Cup through injury, has returned after a promising start to the season at Liverpool.

isis-killer-beheading-video-story-top Steven Gerrard: Rangers players have 'relaunched' club with win
Aug 31, 2018 - 01:40
There is no doubt Steven has made a difference to them and made a change to them, a positive change. We hope he can go away and do himself justice and I believe he will'.

Packers, Aaron Rodgers Agree To Massive Contract Extension
Aug 30, 2018 - 03:17
Ian Rapoport of the network adds Rodgers will receive more than $80 million from the deal by March 2019. With the new extension Rodgers, 34, will likely play the remainder of his career in Green Bay.

isis-killer-beheading-video-story-top U.S. Open 2018: Tournament apologizes for Cornet's shirt-change code violation
Aug 30, 2018 - 02:44
Female players, if they choose, may also change their shirts in a more private location close to the court, when available. Cornet returned from a break in action during her match Tuesday with her shirt on backward.