Coca-Cola, a dominant player in the food and beverage industry, is reportedly in discussions to divest its coffee chain, Costa Coffee.
This multinational conglomerate, which includes renowned brands such as Sprite, Fanta, Powerade, and Dasani, is currently collaborating with investment bank Lazard to evaluate its strategic options.
As developments unfold, Sky News, which broke the news, indicates that initial talks with several potential bidders, including private equity firms, have already commenced.
Moreover, indicative offers are anticipated by early autumn, with sources suggesting that Coca-Cola might establish a sale price of around £2bn (€2.3bn), reflecting a significant depreciation.
Coca-Cola’s Relationship with Costa Coffee
In January 2019, Coca-Cola finalized its acquisition of Costa Coffee for £3.9bn. However, the partnership has not met the expected benchmarks. Coca-Cola’s CEO, James Quincey, remarked in July that Costa had “not quite delivered” and was “not where we wanted it to be from an investment hypothesis point of view.”
Currently, Costa Coffee boasts over 2,000 locations in the UK and more than 3,000 worldwide. Furthermore, the chain employs approximately 35,000 individuals globally.
As of now, Coca-Cola has not issued any statements regarding the ongoing discussions.
