Hu Xiu·2025-08-25 08:04Core Viewpoint - Coca-Cola is planning to sell Costa Coffee, with a significant price drop from its original acquisition cost, indicating a shift in strategy amid increasing competition in the coffee market [2][14][17]. Group 1: Company Developments - Coca-Cola is collaborating with Lazard to evaluate the sale of Costa Coffee, having already engaged in preliminary talks with private equity firms [2][13]. - Costa Coffee was acquired by Coca-Cola for £3.9 billion (approximately ¥34.7 billion) in 2018, but the current sale price is expected to be around £2 billion (approximately ¥19.4 billion), reflecting a 50% decrease [2][14]. - As of the end of 2023, Costa Coffee generated revenues of £1.22 billion (approximately ¥12.8 billion) and operates over 4,000 stores globally [11]. Group 2: Market Context - The coffee market has become increasingly competitive, with major players like Starbucks, McDonald's (McCafé), and Tim Hortons aggressively expanding their coffee offerings [17]. - Starbucks China is also in talks for a potential sale, with its market share dropping from 34% in 2019 to an estimated 14% in 2024, despite a valuation increase from $5-6 billion to potentially $10 billion [21][22]. - The global coffee market is undergoing significant changes, with multiple brands, including Costa and Peet's Coffee, facing strategic shifts and potential acquisitions [26][29]. Group 3: Strategic Implications - Coca-Cola's decision to divest Costa Coffee is seen as a move to focus on its core beverage business and reduce reliance on lower-margin products [17][27]. - The ongoing changes in the coffee industry reflect broader economic trends, with companies adapting to competitive pressures by shifting from "heavy asset" to "light asset" strategies [27][29]. - The current environment presents opportunities for investors looking to acquire undervalued assets in the coffee sector [28].