Coca-Cola Considers Sale of UK Coffee Chain Costa

The Coca-Cola Company is exploring the possible sale of Costa Coffee, Britain’s largest high street coffee chain, six years after acquiring the brand in a major diversification move.

According to reports, the Atlanta-based drinks company has begun working with investment bankers at Lazard to gauge market interest in Costa. Early discussions are said to be at an exploratory stage, with no final decision yet made on whether a sale will proceed.

Coca-Cola purchased Costa Coffee in 2018 from Whitbread in a deal worth £3.9 billion. At the time, the acquisition was viewed as a strategic step to broaden the company’s portfolio beyond its core soft drinks business, which has faced growing pressure from changing consumer tastes and concerns about sugar consumption.

Costa Coffee, founded in London in 1971, has since grown into a well-known brand across the UK and internationally. The chain operates thousands of outlets, making it the largest branded coffee shop chain in the country, and also has a presence in international markets. Its expansion into vending and at-home coffee products has further strengthened its reach.

Since Coca-Cola took ownership, Costa has remained a prominent player in the highly competitive UK coffee sector, competing with rivals such as Starbucks, Caffè Nero, and Pret a Manger. Despite challenges in the hospitality sector during the COVID-19 pandemic, the brand has continued to be a significant part of the UK high street, benefiting from the nation’s strong coffee culture.

The reasons behind Coca-Cola’s decision to explore a sale have not been officially disclosed. Analysts suggest that the move may reflect a shift in corporate priorities as Coca-Cola evaluates its global portfolio. Divestment could allow the company to refocus on core beverages or free up capital for investment in other growth areas.

If a sale were to proceed, industry observers expect strong interest from private equity firms and international hospitality groups seeking to expand their presence in the UK market. Costa’s established brand and nationwide footprint make it an attractive target for potential buyers.

For now, Coca-Cola and Lazard have not provided public comment on the reports, and no timeline for a possible transaction has been confirmed. Until further details emerge, Costa Coffee continues to operate as usual across the UK.

The potential sale marks another significant development in Britain’s retail and hospitality landscape, underscoring the ongoing shifts among major multinational companies in response to consumer demand and market conditions.