Costa Coffee chain attracts multiple bidders, including Apollo and Coca-Cola

Wednesday, Aug 27, 2025 6:39 am ET1min read

Apollo, owner of Wagamama, is among the suitors for Costa coffee chain. Coca-Cola is the world's leader in non-alcoholic beverage production and marketing, with a portfolio of brands including Coca-Cola, Diet Coke, Fanta, and Sprite. The group has 132 production sites worldwide and generates 63.8% of its net sales abroad.

Coca-Cola is in discussions with investment bank Lazard to explore potential options for its British coffee chain, Costa Coffee, including a possible sale. This move aligns with broader trends in the packaged food sector, where companies are pursuing strategic deals to achieve scale and better cope with rising inflation and evolving consumer preferences for healthier options [1].

The acquisition of Costa Coffee in 2018 was part of Coca-Cola's strategy to strengthen its position in the competitive global coffee market and challenge rivals such as Starbucks and Nestlé. The potential sale of Costa Coffee, which operates in 50 countries worldwide, is expected to receive indicative offers by early autumn 2025. However, a sale is not yet certain [1].

Apollo, owner of Wagamama, is among the suitors for Costa Coffee. This indicates a growing interest from potential buyers in the coffee chain. Apollo's involvement underscores the increasing competition in the global coffee market [2].

Coca-Cola's Q3 2025 earnings are expected on October 22, with analysts predicting an EPS of $0.80, a 2% increase from the prior year's $0.77. Quarterly revenue is expected to reach $12.48 billion, up from $11.85 billion a year earlier [2].

Coca-Cola's dividend yield is 2.89%, and it paid $2.04 per share in dividends during the last 12 months. To generate an income of $100 per month from Coca-Cola dividends, an investment value of approximately $41,522 is required, which is around 590 shares at $70.41 each [2].

References:
[1] https://finance.yahoo.com/news/coca-cola-explores-potential-sale-090708984.html
[2] https://finance.yahoo.com/news/heres-earn-100-passive-income-120300976.html

Costa Coffee chain attracts multiple bidders, including Apollo and Coca-Cola

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