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MILAN – Coca-Cola is considering the sale of Costa Coffee and is working with the investment bank Lazard in order to make the best course of action. The company bought Costa for 3.9 billion pounds in 2018 to diversify his business. However, coffee bean prices have increased now its costs, as reported by The Financial Times.
The sale of Costa Coffee
The news of the sale was first reported by Sky but Coca-Cola still did not comment on the possible course of action.
In a previsous occasion, the Coca-Cola CEO James Quincey hinted at changes to Costa’s operations, saying as reported by Yahoo Finance: “Our investment in Costa is not where we wanted it to be from an investment hypothesis point of view.”
“We’re in the mode of reflecting on what we’ve learnt, thinking about how we might want to find new avenues to grow in the coffee category, while continuing to run the Costa business successfully.”
The current valuation of Costa Coffee is estimated to be around 2 billion pounds, lower than the 3.9 billion pounds Coca-Cola paid to acquire it seven years ago.
Costa,as reported by Sky, trades from more than 2,000 stores in the UK, and well over 3,000 globally, according to the latest available figures.
