Coca-Cola is considering selling its British coffee chain Costa Coffee and has engaged investment bank Lazard to review strategic options, according to a Sky News report. The beverage giant acquired Costa in 2018 for more than $5 billion in a bid to diversify beyond carbonated soft drinks.
Sources cited by Sky News said Coca-Cola has held preliminary discussions with a select group of potential bidders, including private equity firms. Indicative offers for the business are expected in early autumn. However, the company may ultimately decide to retain the chain.
Neither Coca-Cola, Costa Coffee, nor Lazard has commented on the development.
Costa Coffee, founded in London in 1971, operates in 50 countries with more than 2,700 outlets across the UK and Ireland and over 1,300 stores globally. The brand is seen as Coca-Cola’s answer to global rivals like Starbucks and Nestlé’s Nespresso in the premium coffee segment.
The potential divestment comes as Coca-Cola continues to reshape its portfolio, focusing on growth categories such as energy drinks, functional beverages, and ready-to-drink coffee products.
If the sale proceeds, it could mark one of the most significant deals in the global coffee market in recent years, potentially reshaping competition in a sector valued at more than $400 billion worldwide.