Coca-Cola ‘jettisons Costa Coffee sale plan’

Core Viewpoint - Coca-Cola has reportedly abandoned plans to sell its UK chain Costa Coffee after private-equity offers did not meet its expectations [1][2] Company Strategy - Coca-Cola acquired Costa Coffee for $5.1 billion in 2018 as part of its strategy to become a "total beverage company" [2] - CEO James Quincey indicated that the investment in Costa has not met growth expectations, particularly in the ready-to-drink coffee segment and home Express machines [3][6] - The Costa business remains heavily weighted towards physical stores, with over 2,000 locations in the UK and more than 3,000 globally [3] Market Insights - The coffee category is described as large, profitable, and growing, presenting an attractive opportunity for Coca-Cola [4] - Despite challenges, the Costa business has returned to volume growth, with ongoing investments in stores and expansion of Costa Express machines [5] Future Considerations - Coca-Cola is reflecting on its coffee strategy, acknowledging that the anticipated growth in non-retail segments has not materialized as expected [6]