Costa Coffee’s Billion-Pound Drama: Coca-Cola High-Stakes Sell-Off Saga Unfolds!

Coca-Cola’s dream of dominating coffee with Costa has turned into a blockbuster flop. The giant bought Britain’s favourite coffee chain for 3.9 billion euros in 2019. Now, it’s desperately trying to offload it for just 2 billion euros—a whopping billion euro loss. 

The plot thickens like a strong espresso. Costa posted revenues of 1.22 billion euros in 2023, up 9% from the year before. Yet profits vanished into a 9.6 million euro pre-tax loss. Blame skyrocketing coffee bean prices at 50-year highs, inflation and tough rivals like Greggs and indie cafes stealing the spotlight. 

Coca-Cola’s CEO James Quincey spilt the beans last month. “Costa has not quite delivered on expectations,” he told investors. The company hired bankers at Lazard to stop the chain around. Private equity bigwigs line up, with bids eyed for autumn 2025. 

But hold onto your ladders—the deal’s on life support! As of December 2025, talks with top bidder TDR Capital are crumbling over price. Coca-Cola wants 2 billion euros; TDR is pushing back hard. Last-ditch weekend huddles aim to save the sale, but it might collapse entirely. 

Over 2000 UK stores and 18000 jobs hanging in the balance. Costa’s market share dipped to 23.3% amid store closures and footfall flops. Post-pandemic woes, energy bills and labour costs crushed margins. Even vending machine sidekick Costa Express couldn’t brew up salvation. 

Not all gloom across the pond. In India, Costa’s buzzing! FY25 sales soared 31% to Rs 198.5 crore, profits up 285 to Rs 149.7 crore. They added stores to hit 220 outlets. Yet bean inflation nibbled gross margins to 75.4%

Fans are buzzing online. “Costa’s my daily ritual—don’t let it vanish!” tweets one loyalist. Memes flood feeds: Coca-Cola as the jilted lover dumping its coffee fling. Will TDR swoop in with a minority stake for Coke? Or does  Apollo, KKR and Bain lurk in the wings? The coffee world’s holding its breath. 

This isn’t just business—it’s entertainment gold. Forming a 3.9 billion euro bet to a bargain-bin fire sale, Costa’s tale mirrors high street heartbreaks. Changing tastes favour quick bites over sit-down lattes. Starbucks and Pret laugh from afar as independents charm with artisanal vibes. 

Coca-Cola, with its 224.9 billion euro empire, shrugs off the hit. But for coffee lovers, it’s cliffhanger time. Will Costa rise phoenix-like under new owners? Or fade into obscurity? Stay tuned—the next sip could spill major twists.