$5.1 Billion Acquisition Puts Coca-Cola In The Retail Coffee Business

The Coca-Cola Company has entered a definitive agreement to acquire Costa Coffee, a U.K.-based retail coffee chain with a presence throughout Europe, Asia Pacific, the Middle East and Africa, for $5.1 billion. Costa operates nearly 4,000 outlets in addition to coffee manufacturing and vending businesses.

“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” said James Quincey, President and CEO of Coca-Cola in a statement. “Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”

The deal gives Coca-Cola access to a scalable coffee footprint that is already the leading brand in the U.K. and has a foothold in China, as well as other emerging markets. The deal…