Coca-Cola Exploring Potential Sale Of Costa Coffee – CoffeeTalk

Coca-Cola is collaborating with investment bank Lazard to explore potential options, including a possible sale of British coffee chain Costa. The company has held initial talks with a few potential bidders, including private equity firms, and is expected to receive indicative offers in early autumn. Costa Coffee, acquired in 2018 for over $5 billion, is part of a wave of dealmaking in the packaged food space, which has seen robust growth as companies seek scale to weather price inflation and consumers seek healthier options. Coca-Cola CEO James Quincey hinted at changes to Costa’s operations in an earnings call last month, stating that their investment in Costa is not where they wanted it to be. The company is now reflecting on what they’ve learned and exploring new avenues to grow in the coffee category while continuing to run the Costa business successfully. In response to Health Secretary Robert F. Kennedy Jr.’s Make America Healthy Again campaign, Coca-Cola has agreed to use real cane sugar in the United States.

Read More @ Reuters