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Coca-Cola Acquires U.K. Coffee Shop Chain Costa In Bid For A Share Of The Booming Coffee Market

August 31, 2018: 12:00 AM EST
Gambling on the continued popularity of coffee, and apparently undeterred by the prospect of competing against Starbucks Coca-Cola has acquired British coffee-shop chain and roastery Costa – with its 3,800 cafés – in a deal worth $5.1 billion. A few analysts were skeptical of the deal, noting that 2,500 of Costa’s locations are in the U.K. and wondering why the soft drinks giant would enter the unfamiliar world of bricks-and-mortar retail. But Coke CEO James Quincey said the acquisition amounted to a wager on the burgeoning global coffee business: a “coffee strategy, not a retail strategy.” The company has no current plans to open Costa coffee shops in the U.S., but will bring Costa coffee vending machines and beans to U.S. gas stations, college campuses, and quick-service restaurants. 
Jennifer Maloney in New York and Ian Walker in London, "Coke Adds Coffee to Its Drinks Mix in $5.1 Billion Deal", The Wall Street Journal, August 31, 2018, © Dow Jones & Co., Inc
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