Coca-Cola explores sale of Costa Coffee; bids expected in autumn

Coca-Cola is exploring a potential sale of Costa Coffee, initiating talks with a small number of bidders and engaging Lazard to assess interest as part of a broader review of its coffee strategy. Preliminary offers are expected in the autumn, but the Soft Drinks giant has not committed to a sale, saying the process could still be halted at any stage. The move would mark a high-profile exit from one of Britain’s largest high-street coffee chains, which operates more than 2,000 stores in the UK and around 3,000 worldwide.

Costa Coffee was acquired by Coca-Cola in 2019 for about 3.9 billion pounds from Whitbread, a deal designed to broaden Coca-Cola’s portfolio beyond carbonated beverages into the hot drinks market. Since then, the chain has faced a challenging backdrop: Costa’s revenue rose to around 1.22 billion pounds in 2023, but the business posted a pre-tax loss of 9.6 million pounds that year amid inflationary pressures on energy and payroll, and impairment charges on investments in subsidiaries. The company also reported rising employment figures, with the headcount increasing to roughly 17,809 across its operations, underscoring the scale of its UK and international footprint.