Coca-Cola Wants Out: Is the $5.1 Billion Costa Coffee Experiment Over?
Key takeaways
- Coca‑Cola is back at the table to sell Costa Coffee after a previous sale attempt stalled, even as the coffee chain shows signs of recovery.
- $5.1 billion acquisition price (2018)
- £20 million operating profit (2025)
- £13.5 million loss (2024)
What happened
Coca‑Cola is re‑examining a sale of its Costa Coffee unit after a prior attempt in late 2025 failed to attract buyers. The $5.1 billion acquisition in 2018 has not delivered the growth Coca‑Cola hoped for, and the company is again weighing a divestiture. Costa Coffee has recently returned to operating profit, posting £20 million in 2025 after losses in 2023‑24, and its revenue rose 5% to nearly £1.3 billion. Meanwhile, Coca‑Cola shares slipped 0.5% in pre‑market trading on Friday after a brief…
Why it matters
The potential sale could reshape Coca‑Cola’s portfolio and free capital for core beverage investments. A successful divestiture would signal that the coffee business is no longer a strategic fit, while a failure to sell may indicate Coca‑Cola’s willingness to keep the unit despite modest performance. Costa’s return…
Short-term and longer-term
Short-term. Coca‑Cola shares dipped 0.5% in pre‑market after the sale news, reflecting short‑term uncertainty.
Longer-term. For investors, the sale could improve Coca‑Cola’s balance sheet and free capital for core beverage growth, but it also signals that the coffee business is not delivering expected synergies.