Coca-Cola considers sale of Costa Coffee

The Coca-Cola Company is believed to be considering a sale of British high street coffee chain Costa, less than seven years after its acquisition.

Sky News reported the soft drinks giant is looking to hold exploratory talks about a sale of Costa with bankers, while initial discussions with a small number of potential bidders, including private equity, have already taken place.

Investment bank Lazard is understood to have been engaged by Coca-Cola to review options for the business, with indicative offers said to be due in early autumn, according to the report.

Whitbread sold Costa to Coca-Cola in early 2019 after almost 25 years of ownership in a £3.9b deal. At the time of the acquisition, the drinks firm said it would deliver a “global coffee platform”.

However, analysts told Sky that the sale could lead to a multibillion-pound loss for Coca-Cola, with one source suggesting the coffee chain is now worth just £2b.

In October 2024, Costa Coffee reported a pre-tax loss of £9.6m in 2023, a major drop on the £245,950 profit Costa posted in 2022.

Costa Coffee was founded by Italian brothers Sergio and Bruno Costa in 1971. The chain operates around 2,600 cafes in the UK and Northern Ireland and more than 3,900 sites worldwide.

Lazard and Costa Coffee have been contacted for comment.