US beverage giant Coca-Cola Co. is reportedly exploring options to sell its British coffee chain, Costa Coffee, according to Reuters on Sunday, 24 August 2025, citing sources familiar with the development. The company has engaged global investment bank Lazard to review potential strategic alternatives.
Coca-Cola has held preliminary discussions with a small number of potential buyers, including private equity firms. While indicative offers for the sale are expected in early Autumn 2025, reports note that a sale is not guaranteed.
Despite media inquiries, Coca-Cola, Costa Coffee, and Lazard did not provide comments, Reuters reported.
Coca-Cola Share Performance
On the New York Stock Exchange (NYSE), Coca-Cola shares closed at $70.13, down 0.75%, with a slight gain of 0.10% in after-hours trading. The company’s market capitalization stood at $301.82 billion as of Friday’s US market close.
Background on Coca-Cola’s Acquisition of Costa
Coca-Cola acquired Costa Coffee in 2018 for over $5 billion, aiming to strengthen its position in the global coffee market and compete with major operators like Starbucks and Nestlé.
Costa Coffee, a British multinational coffeehouse chain, operates in 50 countries and was founded over 50 years ago by two brothers. The brand has since grown into a global name in coffee retailing.
Why Coca-Cola is Considering the Sale
According to CEO James Quincey, Coca-Cola’s investment in Costa has not fully met expectations. Speaking on a recent earnings call, Quincey stated:
“We’re reflecting on what we’ve learned and exploring new avenues to grow in the coffee category, while continuing to run the Costa business successfully.”
Analysts note that the potential sale would join a series of transactions in the packaged foods and beverages sector, as companies adjust to price inflation and evolving consumer preferences toward healthier options.
