Coca-Cola Buys Out ‘Costa Coffee’ from Whitbread
US-based beverage maker Coca-Cola has reportedly agreed to buy out coffee chain Costa Coffee from UK drinks and hotels group Whitbread. The amount of the deal is worth $5.1 billion including debt.
This move has been taken primarily to extend its push into healthier drinks as the demand for aerated and soda drinks is falling. Also, the company is trying to take on the likes of Starbucks and Nestle as the global coffee market is getting a boost.
Costa has nearly 4,000 stores across 32 countries. It will give Coca-Cola "a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion," Coca-Cola stated.
Coca-Cola will use its distribution network to supercharge Costa's expansion as it is currently behind the predomin...