Coca-Cola revives effort to offload struggling Costa Coffee chain

Coca-Cola is re-engaging a sales process for its Costa Coffee subsidiary after abandoning an earlier attempt this year due to limited interest from investors. The company acquired the British coffee chain for $5.1 billion in 2018 but has struggled to generate meaningful growth, recording combined losses of almost £20 million in 2023 and 2024. Costa runs about 2,700 outlets across the United Kingdom and Ireland and employs around 20,000 staff, recently reopening several revamped high-street locations.

A potential strategic acquirer examined the prospect but pulled back over valuation and strategic alignment issues, leaving the price Coca-Cola might seek unclear. The chain is trying to attract younger customers with expanded iced-drink and matcha offerings, and its chief executive Philippe Schillee highlighted confidence in the business by announcing a new headquarters in Hertfordshire slated to open in January 2027.