Economy

Coca-Cola to buy UK’s Costa Coffee chain for $5.1 billion

Coca-Cola to buy UK’s Costa Coffee chain for $5.1 billion

Coca-Cola has agreed to buy Costa Coffee, Britain's largest coffee-shop chain, from United Kingdom company Whitbread for a staggering £3.92 billion ($5.1 billion).

Shares in Whitbread Plc have surged nearly 20 percent on news of the deal on Friday, adding more than £1 billion ($1.3 billion) to the group's stock market value, as financial analysts said the price was markedly higher than expected.

The purchase of the biggest coffee chain behind Starbucks adds to Coca-Cola's drive to diversify away from fizzy drinks and expand its options for increasingly health-conscious consumers, after countries started introducing sugar taxes.

The growth in coffee and hot beverages also means "it's more important than ever that Coca-Cola make a serious and significant investment in the category", says Coca-Cola president and CEO James Quincey, "because it's the right thing to do to serve our consumers with more of the drinks they want, which in turn helps our customers".

"The prize of Costa [for Coca-Cola] lies not in the mature United Kingdom market but in its global potential", said Jonny Forsyth, a Mintel analyst. While the vast majority of Costa stores are in the UK, Coca-Cola did mention the company's recent retail growth in markets such as China.

Rockets Complete Four Player Trade with Suns
Last season, though, despite posting a strong 38.6 percent from deep, he shot two fewer 3-pointers per game. According to Wojnarowski , the Suns are "hopeful" that Harrison can take on a bigger role this year.

Costa is the second-largest coffee-shop chain in China, though its presence there is dwarfed by Starbucks' 2,800 stores.

The £3.9 billion figure represents a multiple of more than 16 times Costa's expected 2018 earnings.

The acquisition is to close in the first half of 2019 once all approvals are received. Costa Coffee, the largest cafe chain in the United Kingdom, has over 4,000 locations worldwide, while the company also operates vending, roasting, and CPG coffee businesses.

The big opportunity for Coke is in the out-of-home market, which Quincey said now only accounts for 20% of the overall coffee industry. Any potential deal will depend on the valuation Costa Coffee offers to RJ Corp.

The group said earlier this year it would split Costa and list it as a separate firm, following pressure from activist investor Elliott.

Lawyer was told Russia had 'Trump over a barrel'
The quote about having Trump over a barrel is clearly the main hook here, so this leak is nearly certainly coming from Democrats. Steele's comments came during a July 2016 breakfast meeting, AP reported.

Costa's like-for-like sales in the United Kingdom dropped 2 percent in the company's first quarter as the retail market weakened.

Nestle joined the trend of coffee giants taking aim at smaller niche producers, buying Blue Bottle Coffee and Chameleon Cold Brew. JAB, the holding company that owns Peet's Coffee, bought United Kingdom sandwich and coffee chain Pret A Manger in May.

Italian coffee maker Illycaffe SpA has attracted interest from suitors including JAB and Nestle, but the family owners have so far rebuffed approaches, according to people familiar with the matter. The company's long-term targets also remain unchanged.

Rothschild advised Coke on the deal while Goldman Sachs, Morgan Stanley and Deutsche Bank advised Whitbread.

Balogun Proud Of Brighton’s Showing In Defeat To Liverpool
But I hope to adapt as soon as possible. "They made changes towards the end of the game to try and stay in it". At Crystal Palace sometimes it looked like "Yes!' and other times 'Hmmm" but we won it 2-0.


  • Dragalia Lost Direct To Air Tonight: Launch Details Announced

    Dragalia Lost Direct To Air Tonight: Launch Details Announced

    If you don't count the Pokémon games, and you shouldn't, Nintendo hasn't had the best run in the mobile space. Nintendo has enjoyed mixed success in the mobile gaming market so far.
    Pixel 3: Are these the first leaked images of Google's smaller phone?

    Pixel 3: Are these the first leaked images of Google's smaller phone?

    Google is expected to launch the Pixel 3 phones and other hardware on October 9th in NY , according to a recent leak. Now, we have some brand new images of what appears to be a Google Pixel 3, complete with screenshots of specs.
    NBC Has Made No Changes In Response To Blowing The Weinstein Story

    NBC Has Made No Changes In Response To Blowing The Weinstein Story

    Farrow has previously countered NBC claims that the Weinstein story was not well-reported enough to broadcast past year . It's safe to say that NBC News has a lot to answer for.
  • Puerto Rico raises death toll from storm Maria to 2975

    Puerto Rico raises death toll from storm Maria to 2975

    For close to a year, Puerto Rico's government has clung to the idea that 64 people died as a result of Maria. Rescue workers come to the rescue after Hurricane Maria.
    Aretha Franklin's funeral to fuse spirit with star power

    Aretha Franklin's funeral to fuse spirit with star power

    Mayor Mike Duggan announced at the service that he meant to have the city's riverfront Chene Park renamed in Franklin's honour. Aretha Franklin's casket arrives for the viewing at the New Bethel Baptist Church on August 30, 2018 in Detroit , Michigan.
    TPG and Vodafone announce merger

    TPG and Vodafone announce merger

    The merger is expected to achieve "significant" synergies, particularly with regard to telecommunications network infrastructure. Latest numbers claim Vodafone Australia has a 19% share of the local mobile market, 6 million mobile subscribers.
  • Liverpool to host Chelsea in EFL Cup third round

    Liverpool to host Chelsea in EFL Cup third round

    Holders Man City are now the favourites to win the Carabao Cup at 10/3, with Chelsea and Liverpool both at odds of 6/1. They also can not face Manchester City , who they knocked out in the quarter-finals last season.
    French actor Gerard Depardieu is subject of rape complaint

    French actor Gerard Depardieu is subject of rape complaint

    In 1990, he received his first Academy Award nomination for Cyrano de Bergerac and was awarded a Golden Globe for Green Card . Depardieu, 69, "absolutely denies" all allegations, his lawyer told the AFP news agency.
    Goats can read expressions, prefer happy people!

    Goats can read expressions, prefer happy people!

    Barnard the goat, one of the animals tested in the study, stands in a field of flowers at the Buttercups Sanctuary. They are also used for research models in biological studies, to pull carts and for pack animals.
  • Rose McGowan issues statement on Asia Argento sexual assault situation

    Rose McGowan issues statement on Asia Argento sexual assault situation

    However, there has been public criticism of Argento's position within the show and cries for her to be fired in Italy. She also alleged Argento "had talked about that she'd been receiving unsolicited nudes of Jimmy since he had been 12".
    Josh Donaldson takes subtle dig at Blue Jays management

    Josh Donaldson takes subtle dig at Blue Jays management

    In four seasons with the Blue Jays, the third baseman slashed.281/.383/.548 with 116 home runs and 316 RBI in 462 games. It was with that production in mind that the Blue Jays discussed a possible extension with Donaldson this spring.
    Frank Field says Labour have threatened to eject him over resignation

    Frank Field says Labour have threatened to eject him over resignation

    But he stressed his resignation of the whip over the anti-Semitism crisis was not part of a plot to bring down the Labour leader. I am writing with considerable sadness to inform you of my intention to sit as an Independent Labour Member of Parliament.