Sou Hu Cai Jing·2025-08-26 11:06Core Viewpoint - The global coffee market is undergoing significant changes, with major players like Coca-Cola and JDE Peet's considering sales of their coffee brands, indicating a potential shift in the industry landscape [1][9]. Group 1: Company Developments - Coca-Cola is reportedly in talks to sell Costa Coffee, the largest coffee chain in the UK, after acquiring it for £3.9 billion in 2018 [2][3]. - Costa Coffee has struggled to expand since its acquisition, with only about 400 new stores added in seven years, bringing the total to approximately 4,200 stores globally [3][7]. - In China, Costa has closed over 100 stores in the past five years, focusing on profitability rather than aggressive expansion [3][5]. Group 2: Market Trends - The global specialty coffee market is projected to grow at a compound annual growth rate (CAGR) of 9.2% until 2028, but growth in the Chinese market is expected to slow from 25% in 2023 to 12% by 2025 [5][6]. - Starbucks China has initiated a price adjustment plan due to declining same-store sales, while JDE Peet's has launched a budget brand, Ora Coffee, in response to market pressures [6][9]. Group 3: Financial Implications - Costa's revenue for 2023 was £1.22 billion, a 9% increase from the previous year, but still below pre-acquisition levels [7]. - Reports suggest that Costa's potential sale price could be around £2 billion, indicating a significant loss for Coca-Cola compared to its original acquisition cost [7][8].