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.
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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.