Starbucks, Tim’s and McCafe might soon have some new competition. Coca-Cola is getting into the coffee business.
The cola giant announced today that it has acquired global coffee brand Costa in a $5.1 billion deal.
Joining the Coca-Cola portfolio, Costa is a leading coffee brand first founded in London in 1971 that has since grown to include nearly 4,000 retail outlets, a coffee vending operation, roastery, and home-brewed coffee formats. That’s a large enough number to trail only Starbucks and McDonald’s in worldwide locations.
While Canadians might not yet be familiar with the brand, they might soon be introduced. The brand is well established in the UK and growing in China, the appeal of this acquisition for Coca-Cola is the scalable platform and “potential for further expansion with customers across the Coca-Cola system.”
“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” said Coca-Cola President and CEO James Quincey. “Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”
