{"id":1379,"date":"2018-09-03T11:16:05","date_gmt":"2018-09-03T11:16:05","guid":{"rendered":"https:\/\/bartalks.net\/?p=1379"},"modified":"2021-08-19T16:58:54","modified_gmt":"2021-08-19T16:58:54","slug":"coca-cola-acquire-costa-coffee","status":"publish","type":"post","link":"https:\/\/bartalks.net\/coca-cola-acquire-costa-coffee\/","title":{"rendered":"COCA-COLA TO ACQUIRE COSTA COFFEE"},"content":{"rendered":"<p>Whitbread PLC has entered into an agreement for the sale of <a href=\"https:\/\/www.coffeeandcocoa.net\/?s=Costa&amp;category=&amp;year=&amp;month=&amp;format=&amp;go=&amp;sortby=DESC\" target=\"_blank\" rel=\"noopener noreferrer\">Costa<\/a> Limited to The Coca-Cola Company for \u00a33.9 billion.<\/p>\n<p>Alison Brittain, Whitbread Chief Executive, said, \u201cI am delighted that we have agreed the sale of Costa to Coca-Cola. This transaction is great news for shareholders as it recognises the strategic value we have developed in the Costa brand and its international growth potential and accelerates the realisation of value for shareholders in cash.<\/p>\n<p>\u201cThe announcement represents a substantial premium to the value that would have been created through the demerger of the business and we expect to return a significant majority of net proceeds to shareholders. Whitbread will also reduce debt and make a contribution to its pension fund, which will provide additional headroom for the expansion of Premier Inn.\u201d<\/p>\n<p>James Quincey, President and CEO of The Cocoa-Cola Company, said \u201cWe are continuing to evolve as a total beverage company. This means we sell Coke, of course, but also so much more. Today, we\u2019ve taken another important step toward becoming the total beverage company we aspire to be.\u201d<\/p>\n<p>Mr Quincey said the deal \u201chelps us get into hot beverages.\u201d He said, \u201cCoffee is one of the fastest-growing beverage categories in the world. It\u2019s also a category with many different elements, from vending to coffee shops to roast-and-ground to instant to pods and capsules.<\/p>\n<p>\u201cIn short, coffee is a big business with many formats. It\u2019s also a remarkably fragmented business. No single company in the world has a strong foothold across all parts of coffee. And that includes Coca-Cola. We have great brands like our ready-to-drink Georgia coffee line-up in Japan, but Coca-Cola doesn\u2019t have a broad, global portfolio in this growing category.<\/p>\n<p>\u201cToday, with the growth in coffee and hot beverages, it\u2019s more important than ever that Coca-Cola make a serious and significant investment in the category, because it\u2019s the right thing to do to serve our consumers with more of the drinks they want, which in turn helps our customers.<\/p>\n<p>\u201cThere are a couple of elements that are valuable here. Retail shops are important for sales of course, but they\u2019re also pivotal in building a brand so it can have even more success beyond its own stores, like in immediate consumption channels.<\/p>\n<p>\u201cCosta has a fresh espresso-based system called Costa Express. There are currently more than 8,000 machines already in-market. We see opportunities to expand this system in immediate consumption and experience channels.<\/p>\n<p>\u201cCosta has great roast and ground beans for restaurants and cafes. The Coca-Cola system has enormous reach in many channels, and we see the potential to expand and offer these high-quality Costa coffee solutions to our existing customers. This great coffee capability will also allow us to expand at-home offerings.<\/p>\n<p>\u201cFinally, Costa offers great opportunities in ready-to-drink beverages. Coca-Cola has bottled and canned coffees in a few markets. The Costa brand has potential for expansion into ready-to-drink coffee across many markets globally. So, Coca-Cola and Costa have remarkably complementary businesses. Costa offers Coca-Cola the best opportunities to create value in coffee. We can be better together.\u201d<\/p>\n<p>Whitbread acquired Costa in 1995, for \u00a319 million when it had only 39 shops and successfully grew the business to be the UK\u2019s largest coffee shop company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whitbread PLC has entered into an agreement for the sale of Costa Limited to The Coca-Cola Company for \u00a33.9 billion. Alison Brittain, Whitbread Chief Executive, said, \u201cI am delighted that we have agreed the sale of Costa to Coca-Cola. This transaction is great news for shareholders as it recognises the strategic value we have developed [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":1380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts\/1379"}],"collection":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/comments?post=1379"}],"version-history":[{"count":0,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts\/1379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/media\/1380"}],"wp:attachment":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/media?parent=1379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/categories?post=1379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/tags?post=1379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}