The Coca-Cola company has agreed to buy Costa, the international coffee chain, for $5.1 billion.
Coca-Cola announced on Friday that they will acquire Costa from its UK owners, Whitbread
Costa coffee chain will become the first global coffee brand owned by Coca-Cola, the company announced on Friday after agreeing to an acquisition deal.
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“Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform,” said Coca-Cola chief executive James Quincey in a joint statement.
The deal comes as the market demand for carbonated drinks is shrinking, as people choose to have more healthy and holistic lifestyles.
While Costa will be Coca-Cola’s first international coffee brand, it will join the company’s other, regional coffee brands, such as Georgia coffee in Japan.
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“Costa also provides Coca-Cola with strong expertise across the coffee supply chain, including sourcing, vending and distribution,” the company said according to AFP.
It will be some time before we see Coca-Cola’s Costa, as they hopes to close the deal in the first half of next year.
The announcement comes just three days after Nestle, overs of Nespresso, said that they have reached a deal with Starbucks to market their products around the world, outside of its coffee shops.
Costa operates more than 1,400 coffee shops around the world