Coca-Cola (KO) Struggles to Salvage Costa Coffee Sale

Group 1 - The Coca-Cola Company is facing challenges in the sale of Costa Coffee, with recent discussions with private equity firm TDR Capital failing to gain traction [2][3][4] - TDR Capital was initially chosen as the preferred bidder, but negotiations have stalled due to a significant valuation gap, with Coca-Cola targeting a sale price of around £2 billion, which is below the £3.9 billion paid in 2018 [3][5] - The decision on whether to proceed with the sale is expected next week, with Coca-Cola considering retaining a minority stake in Costa to facilitate a potential deal [4][5] Group 2 - Costa Coffee has struggled to compete with smaller independent cafés and value-focused competitors, leading to uneven footfall and pressure on margins [5] - TDR Capital is interested in Costa's UK and international operations, excluding China, and has experience in the food and beverage sector through its co-ownership of EG Group [6]