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Coca-Cola concludes $4.9bn Costa Coffee buyout from Whitbread Plc

The Coca-Cola Company, one of the top American non-alcoholic beverage firms, has made it to the headlines for completing its acquisition of Costa Coffee, the British coffeehouse company, from UK’s largest hospitality company, Whitbread Plc.

Reportedly, the 4.9-billion-dollar transaction received approval from the regulatory authorities in China and the European Union (EU). The acquisition, which was first announced in August 2018, gives the Coca-Cola Company a significant scope to consolidate its footprints in the worldwide coffee business that is apparently growing at a rate of 6 percent every year. Industry experts affirm that Costa’s scalable platform laid across multiple channels and formats has the potential to expand Coca-Cola’s portfolio.

Sources familiar with the development revealed that Coca-Cola endeavors to shift beyond soda and include a wider range of beverages, with the Costa acquisition, that covers about 4,000 retail outlets, the Costa brand, its coffee vending operations, and its for-home coffee format.

According to Coca-Cola’s CEO, James Quincey, the beverage giant is envisioning great prospects for value creation with the incorporation of Coca-Cola’s global reach and marketing skills and Costa’s potential.

Allison Brittain, the Chief Executive Officer of Whitbread, commented on the latest acquisition deal saying that Coca-Cola is the appropriate partner that is capable enough to take Costa to the next stage of growth. She further claimed that Costa had only thirty-nine shops when it was acquired by Whitbread and it has now potentially emerged to be a leading international coffee brand.

It has also been reported that Coca-Cola, with its Costa buyout, further plans to expand across the markets of Europe, Africa, Asia and the Middle East and also looks forward to developing RTD products. Coca-Cola, for the record, has consistently been striving to reduce sugar content in its drinks owing to health concerns and is bringing innovative products into the market.

Akshay Kedari: Akshay has completed his graduation in the field of computer engineering and now develops content for solutionrocket.com. Having always been fond of playing with words, Akshay earlier dabbled in web development for a while, before shifting his professional interest completely to writing. Apart from writing, Akshay nurtures a passion for bike rides as well. He can be contacted at- akshay.k@solutionrocket.com | https://twitter.com/axeyked