Coca-Cola is working with funding financial institution Lazard to discover choices for its British espresso chain, Costa Espresso, together with a possible sale, as reported by Sky Information.
The smooth drinks big has initiated discussions with potential bidders, together with non-public fairness firms.
Indicative provides for Costa Espresso, which operates in 50 nations worldwide, are anticipated to be made by early autumn 2025, however a sale is just not but a certainty.
In 2018, Coca-Cola acquired Costa Espresso for greater than $5bn, as a part of its technique to strengthen its place within the aggressive world espresso market, aiming to problem rivals similar to Starbucks and Nestlé.
The acquisition was reported to be aimed toward serving to it scale back its reliance on sugary smooth drinks.
The potential sale of Costa would align with broader traits within the packaged meals sector, the place firms are pursuing strategic offers to realize scale and higher address the pressures of rising inflation and evolving client preferences for more healthy choices, as reported by Reuters.
Throughout an earnings name in July 2025, Coca-Cola CEO James Quincey hinted that the corporate’s funding in Costa had not delivered the anticipated returns.
“Our funding in Costa is just not the place we needed it to be from an funding speculation viewpoint,” he acknowledged.
Consistent with altering client tastes, Coca-Cola can also be responding to rising health-conscious traits. In July, the corporate agreed to make use of actual cane sugar in its US merchandise, following rising calls for for more healthy alternate options within the meals and beverage trade.
“Coca-Cola explores potential sale of Costa Espresso” was initially created and printed by Verdict Food Service, a GlobalData owned model.
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