Key facts
- Coca-Cola has reportedly abandoned plans to sell Costa Coffee.
- Private equity bids from TDR Capital and Bain Capital Special Situations failed to meet expectations.
- Costa Coffee posted an operating loss of £13.5 million on £1.2 billion in revenue in 2024.
- Coca-Cola completed the acquisition of Costa Coffee for £3.9 billion in January 2019.
- Henrique Braun is set to succeed James Quincey as Coca-Cola CEO in March.
Coca-Cola has reportedly decided to halt the sale of its British coffee chain, Costa Coffee, after potential buyers failed to meet the company's valuation expectations. Months of talks with private equity firms, including TDR Capital and Bain Capital Special Situations, have collapsed, according to sources familiar with the matter.
Costa Coffee reported an operating loss of £13.5 million on revenues of £1.2 billion in 2024, with the company citing weak high street footfall and competition from cheaper rivals. Coca-Cola acquired Costa Coffee for £3.9 billion in January 2019.
The decision to scrap the sale comes as Henrique Braun is set to replace James Quincey as Coca-Cola's chief executive in March. While the sale process has been abandoned for now, Coca-Cola may consider revisiting the plans at a later date.