Coca-Cola Costa Espresso sale choice – abstract
- Coca-Cola reportedly ended talks to promote Costa Espresso after months
- Personal fairness bids from TDR and Bain failed to satisfy expectations
- Costa Espresso posted £13.5m working loss on £1.2bn income in 2024
- Sale halt comes as Henrique Braun prepares to succeed James Quincey
- Coca-Cola might revisit Costa Espresso sale plans at a later date
The Coca-Cola Firm has reportedly deserted plans to promote British espresso chain Costa Espresso, after presents from non-public fairness companies failed to satisfy expectations.
In accordance with the Monetary Occasions, the US tender drinks large ended talks with remaining bidders for Costa in December, calling a halt to an public sale course of which had lasted a number of months.
The newspaper cited sources “accustomed to the matter”, who mentioned non-public fairness companies TDR Capital and Bain Capital Particular Conditions had each made it to the latter rounds of negotiations earlier than talks collapsed.
Apollo, KKR and Centurium Capital, have been concerned at earlier phases.
Talks over a take care of TDR would have seen Coca-Cola retain a minority stake in Costa Espresso.
The choice to finish efforts to discover a purchaser for Costa, which has greater than 2,700 branches throughout the UK and Eire, comes as Coca-Cola’s CEO Henrique Braun prepares to exchange James Quincey as chief government in March.
In accordance with the supply, the corporate may nonetheless revive plans to promote Costa at a later date.
Additionally learn → Coca-Cola & Costa Espresso: What went improper
Studies started swirling again in August 2025 that the US multinational was planning to promote the high-street espresso chain, after Coca-Cola chief government James Quincey mentioned it had “not fairly delivered” and was “not the place we needed it to be from an funding speculation viewpoint”.
Costa’s working loss greater than doubled to £13.5m (€15.5m) on revenues of £1.2bn in 2024, in keeping with accounts filed at UK Corporations Home. The corporate blamed weak excessive avenue footfall and competitors from cheaper rivals.
Coca-Cola accomplished the £3.9bn buy of Costa Espresso again in January 2019.
What’s subsequent for Coca-Cola and Costa Espresso?
Coca-Cola’s choice to halt the sale of Costa Espresso underscores the challenges dealing with the UK’s high-street espresso market, the place rising prices and shifting client habits have squeezed margins.
Whereas the corporate might revisit a sale sooner or later, for now Costa stays firmly beneath Coca-Cola’s umbrella as Henrique Braun prepares to take the reins in March. Whether or not the espresso chain can flip round its fortunes amid fierce competitors shall be one to look at.
Coca-Cola has not but responded to request for remark.
