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Parent company Coca-Cola are reportedly in talks with investors over selling Britain’s biggest high street coffee chain.
The US-based soft drinks company acquired the UK chain six years ago for over $5 billion (around £3.9 billion) from Premier Inn owner Whitbread.
Although lawyers are reportedly starting work on the potential sale, analysts have said that the chain may only sell for around £2 billion now, should a deal be agreed.
Costa has more than 2,000 stores across the UK, and over 3,000 globally. According to Sky News, potential offers for the coffee giant are due in early autumn.
The news comes as the coffee giant has faced financial pressures amid a tough consumer environment. Reports said Costa’s 2022 accounts showed pressures triggered by inflation, leading to a “restructuring programme” being launched by the chain.
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Recent years have proved to be a challenging time for retail and hospitality, with many chains struggling with low consumer spending and rising costs. Costa has made a string of store closures over the past few months.
Despite this, Costa’s latest financial accounts show that in 2023 the chain recorded revenues of £1.22 billion.
Atlanta-headquartered Coca-Cola are yet to confirm the reports – sources have warned that the fizzy drinks company may not proceed with the offer.
In the US, food companies are looking for healthier substitutes in response to Health Secretary Robert F. Kennedy Jr.’s Make America Healthy Again campaign. In July, President Donald Trump said Coca-Cola had agreed to use real cane sugar in their US products.
LBC have reached out for comment.
