Thursday, 15 January 2026

Loss-making Costa Coffee Calls off Sale from Coca Cola

Coca-Cola has called off plans to sell Costa Coffee to private equity after low valuations manifested from wannabe bidders.  

Coca-Cola was said to be selling Costa for £2bn, a discount from the £3.9bn it paid for the business from Whitbread, its previous owner.  Bidders included TDR Capital (which owns ASDA) and Bain Capital (which owns Gail's - which it bought for £200m - and Pizza Express).

Costa has faced competition from cheaper rivals like Greggs, and brands like Blank Street and Black Sheep Coffee.

James Quincey, CEO of Coca-Cola, admitted the Costa transaction had not delivered. Henrique Braun (California-born COO) will come in as new CEO from March 2026.

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