Brand Management

Coca-Cola to acquire Costa for $5.1 Billion

The Coca-Cola Company announced today that it has reached a definitive agreement to acquire British coffee brand Costa Limited, which was founded in London in 1971 and has grown to become a major coffee brand across the world.

U.K. coffee-shop leader Costa will be acquired by Coca-Cola Company for 3.9 billion pounds ($5.1 billion) in its biggest acquisition in eight years, pushing the soda pioneer into the fiercely competitive java market.

The valued at $5.1 billion acquisition will give Coca-Cola a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion.

The Coca-Cola Company will acquire all issued and outstanding shares of Costa Limited, contains all of the existing operating businesses of Costa operations in more than 3,800 stores in 32 countries.

Coca-Cola and coffee​

Costa will give Coca-Cola new capabilities and expertise in coffee arena as Coca-Cola sees coffee as a ‘significant and growing segment of the global beverage business’.

Worth mentioning that Coca-Cola already sells coffee under the market-leading Georgia (ジョージア Jōjia) brand in Japan and has some other local products for specific markets.

Fast-growing coffee category offers opportunities for expansion of Costa brand in multiple channels and formats. And for Coca-Cola, the deal will support the efforts to move away from soft-drinks toward more healthier options for increasingly health-conscious consumers.

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