Core Insights - The potential sale of Costa Coffee is being evaluated by Coca-Cola, with initial estimates around £1 billion (approximately ¥9.4 billion), significantly lower than Coca-Cola's original acquisition cost of £3.9 billion [2][5] - Various investment firms, including Dajun Capital, KKR, Bain Capital, and TDR Capital, are interested in bidding for Costa, with Bain Capital previously offering around £2 billion [2][5] - Costa Coffee has faced challenges in the competitive Chinese market, leading to a reduction in its store count and a shift in strategy [4][5] Company Overview - Costa Coffee, founded in 1978 and entering China in 2006, is the largest coffee chain in the UK, operating over 4,000 stores globally [3] - The brand has struggled against domestic competitors like Luckin Coffee, which has rapidly expanded and intensified market competition [3][4] Market Dynamics - Since 2020, Costa has been closing stores in China, with only 389 remaining by the end of 2024, down from a projected 1,000 stores [4] - Coca-Cola's acquisition of Costa in 2018 for $5.1 billion did not yield the expected growth, prompting considerations for a sale [5][6] Investment Opportunities - Dajun Capital views the potential acquisition of Costa as a rare opportunity to invest at a discounted price [6] - The successful turnaround of Luckin Coffee, backed by Dajun Capital, positions the firm favorably for further expansion in the coffee sector [8][9] Strategic Considerations - Coca-Cola intends to retain control over Costa's ready-to-drink coffee products while potentially selling the store operations [10] - The competitive landscape in the coffee market necessitates strategic agility from any potential new owner of Costa [11]