The Coca Cola Company Atlanta, has successfully acquired Costa Ltd. from Whitbread PLC. This $4.9 billion transaction follows approval from regulatory authorities in the European Union and China. The acquisition was first announced August 31st 2018.
Costa has operations in more than 30 countries. This gives The Coca-Cola Co. a significant footprint in the global coffee business. Worldwide, the coffee market is seeing 6% annual growth. Furthermore, Costa also has scalable platform across multiple formats and channels. This ranges from the existing Costa Express vending system to opportunities to introduce ready-to-drink products.
“We see great opportunities for value creation through the combination of Costa’s capabilities and Coca-Cola’s marketing expertise and global reach”. James Quincey, CEO of The Coca-Cola Co also added “Our vision is to use Costa’s strong platform to expand our portfolio in the growing coffee category.”
Whitbread’s Chief Executive, Alison Brittain added: “We wish our friends and colleagues at Costa all the very best for their future success. Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion.”
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