Coca-Cola’s failed coffee investment faces an uncertain future as rumors sell rumors

coca cola (Which – which) Betting is great on coffee Costa. Now he rethinks the entire deal.

“Our investments in Costa are not the place where we wanted to be from the point of view of the investment hypothesis.”

Now, Sky News mentioned that Coca-Cola may explore the sale of Costa. According to what the company was working with bankers in Lazard and participated in early discussions with a limited number of potential buyers. Coca-Cola and Lazard did not immediately respond to the comment.

the 5.1 billion dollars in acquisition In 2018, he was one of the first gambling in Quincy as CEO. This step was supposed to give a “strong” foothold in the global coffee market, from retail stores to the ready -made device boxes (RTD).

But implementation and growth stopped. Costa achieved 1.3 billion pounds (then 1.7 billion dollars) of revenues in the 2018 fiscal year, but it recorded 1.22 billion pounds for the fiscal year 2023. According to what was reported, the company may be sold at a price closer to two billion pounds (2.7 billion dollars).

Charlie Higgs, Richild’s analyst and partners, told Charlie Higgs, Rothschild analyst and partners, Redberne, that “Costa” did a great job in the UK with things like Lattes and Cappuccinos, but this is not really the case in the United States “. To him. There is a lot of competition. “

In the United States, Costa’s work focuses on the approach to work and bottled commodities. Costa Professional provides equipment and support to companies, and it is said to have 250 Smart Café coffee machine all over the country. In 2024, I launched the ICED RTD café line that includes cantees and cold boards in retailers like Amazon Fresh (amzn) And walgrens (WBA).

Globally, Costa works more than 4000 stores More than that 50 countriesIn addition to more than one 14000 Self -self -cafe machines. The company offers a range of RTD drinks throughout Europe and Asia.

“Coke bought these coffee works directly before Covid,” Duane Stanford told Yahoo Finance. “The companies were declining to save, and there was a shortage, and the supply chains were difficult. The last thing I was doing was to put coffee ready to drink in the market.”

Higgs said that Costa’s margins after they were reduced from clips, this time through acute inflation.

The price of Arabica coffee has Whipsawed in recent yearsDriving with harsh weather events and display disorders. After wearing in 2022, it decreased to about $ 1.50 per pound by mid -2013, It rose again by more than 70 % in 2024 To $ 2.50, then rose to record high levels of about $ 4.30 per pound in early 2025.