The Coca-Cola Company completes acquisition of Costa
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The Coca-Cola Company has announced that it has completed the acquisition of Costa Limited from Whitbread PLC. The US$ 4.9 billion transaction follows approval from regulatory authorities in the European Union and China. The acquisition was first announced on August 31, 2018. Costa, which has operations in more than 30 countries, gives Coca-Cola a significant footprint in the global coffee business. Worldwide, the coffee segment is growing 6 percent annually. Costa has a scalable platform across multiple formats and channels, from the existing Costa Express vending system to opportunities to introduce ready-to-drink products.
“We see great opportunities for value creation through the combination of Costa’s capabilities and Coca-Cola’s marketing expertise and global reach,” said James Quincey, CEO of The Coca-Cola Company. “Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category.”
“We wish our friends and colleagues at Costa all the very best for their future success,” said Alison Brittain, Whitbread Chief Executive. “Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion.”
Questions & Answers
Q.What was the final purchase price Coca-Cola paid for Costa Limited?
What was the final purchase price Coca-Cola paid for Costa Limited?
The Coca-Cola Company completed the acquisition of Costa Limited for US$4.9 billion. This transaction followed regulatory approval from authorities in the European Union and China.
Q.When was the acquisition of Costa Limited by Coca-Cola first publicly announced?
When was the acquisition of Costa Limited by Coca-Cola first publicly announced?
The acquisition of Costa Limited by The Coca-Cola Company was first announced to the public on August 31, 2018. This announcement preceded the completion of the transaction.
Q.How does this acquisition benefit Coca-Cola's presence in the global market?
How does this acquisition benefit Coca-Cola's presence in the global market?
This acquisition gives Coca-Cola a significant footprint in the global coffee business. It allows them to expand their portfolio in the growing coffee category, which is increasing by 6 percent annually worldwide.
Q.What was Whitbread's role with Costa before this sale, and how long had they owned the brand?
What was Whitbread's role with Costa before this sale, and how long had they owned the brand?
Whitbread PLC was the previous owner of Costa Limited, having acquired it 23 years ago when it had only 39 shops. They saw Costa grow into a leading international coffee brand under their ownership.
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