Coca-Cola(US:KO) 3 6 Ke·2025-08-26 23:55Core Viewpoint - Coca-Cola is considering selling Costa Coffee, with an estimated sale price of £2 billion (approximately 192.3 billion RMB), as the competitive landscape in the coffee market intensifies [1][2]. Group 1: Company Overview - Costa Coffee is the largest coffee chain in the UK, with over 4,000 stores globally, and was acquired by Coca-Cola for $5.1 billion in 2018 [1][3][8]. - The acquisition aimed to help Coca-Cola enter the hot beverage market, which was one of the few areas without a global brand presence [1][10]. Group 2: Market Competition - The coffee market has become increasingly competitive, especially in China, where new players like Luckin Coffee are rapidly expanding and capturing market share [1][18][21]. - Costa's market share in the UK once surpassed that of Starbucks, but it now faces challenges from both local and international competitors [1][5][21]. Group 3: Strategic Challenges - The anticipated synergies from the acquisition have not fully materialized, as Costa struggles to compete with Starbucks' digital transformation and marketing strategies [13][15][25]. - Coca-Cola's core competencies in fast-moving consumer goods do not align well with the operational demands of running a coffee chain, leading to management challenges and capital expenditure issues [24][25]. Group 4: Future Outlook - The global coffee market is evolving, with new Chinese players beginning to replicate their successful models internationally, posing a new challenge to traditional brands [26]. - Selling or divesting Costa Coffee may allow Coca-Cola to refocus on its strengths in the fast-moving consumer goods sector, as the coffee business may not align with its operational model [26].