**Coca-Cola Explores Sale of Costa Coffee Amid Strategic Review**
Coca-Cola Co., the prominent US-based beverage company, is reportedly in discussions with Lazard, a global investment bank, to evaluate options for potentially selling its British coffee chain, Costa Coffee. This information was disclosed by Reuters on August 24, 2025, citing sources familiar with the matter.
The beverage giant has engaged in talks with a select group of potential bidders, including private equity firms, regarding the sale of Costa Coffee. According to a report from Sky News, Coca-Cola anticipates receiving indicative offers for the coffee chain in early autumn, although the sale is not guaranteed.
Coca-Cola, along with Costa Coffee and Lazard, has not responded to inquiries from the media regarding this development. Following the news, Coca-Cola’s shares on the New York Stock Exchange (NYSE) closed down 0.75% at $70.13, although they saw a slight recovery with a 0.10% increase in after-hours trading. As of the market close on Friday, Coca-Cola’s market capitalization stood at approximately $301.82 billion.
In 2018, Coca-Cola acquired Costa Coffee for over $5 billion, aiming to enhance its presence in the competitive global coffee market, particularly against rivals like Starbucks and Nestlé. Costa Coffee, a British multinational coffeehouse chain, operates in 50 countries and has evolved into a well-known brand since its inception over 50 years ago by two brothers.
The potential sale of Costa Coffee aligns with trends in the packaged foods market, where companies are seeking to adapt to price inflation and shifting consumer preferences towards healthier options. Coca-Cola’s CEO, James Quincey, acknowledged during an earnings call that the investment in Costa has not met expectations. He emphasized the company’s focus on reflecting on lessons learned and exploring new growth avenues in the coffee sector while continuing to manage Costa effectively.
In conclusion, Coca-Cola’s exploration of a sale for Costa Coffee highlights the company’s strategic reassessment in the evolving coffee market landscape. As the situation develops, it will be interesting to see how this potential sale unfolds and what it means for Coca-Cola’s future in the coffee industry.
**FAQ**
**What prompted Coca-Cola to consider selling Costa Coffee?**
Coca-Cola is reviewing its investment in Costa Coffee as part of a strategic reassessment, aiming to explore new growth opportunities in the coffee sector while addressing current market challenges.