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Coca-Cola Brews a Hot Acquisition: Costa Coffee

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Ahmed Maamoun

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Maamoun, A., (2020). Coca-Cola brews a hot acquisition: Costa coffee. In SAGE Business Cases. 2020. 10.4135/9781529724554

Maamoun, Ahmed. "Coca-Cola Brews a Hot Acquisition: Costa Coffee." In SAGE Business Cases. SAGE Publications Ltd., 2020. 10.4135/9781529724554.

Maamoun, A 2020. Coca-Cola Brews a Hot Acquisition: Costa Coffee, In SAGE Business Cases, SAGE Publications Ltd., viewed 2/20/2020, 10.4135/9781529724554.

Maamoun, Ahmed. "Coca-Cola Brews a Hot Acquisition: Costa Coffee." SAGE Business Cases. SAGE Publications Ltd., 2020. SAGE Knowledge. Web. 2/20/2020.

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    The Coca-Cola Company, created in 1886, is the world’s largest beverage corporation, offering over 500 brands to consumers in 200 countries. The company’s revenues and profits have been dwindling over the last decade, due to the shrinking soda market, as consumers are turning away from sugary drinks, and cities are imposing soda taxes. While carbonated soft drinks (CSD) sales are declining, coffee consumption is on the rise. In August 2018, Coca-Cola decided to get a USD 5 billion shot of caffeine, and acquired the British coffeehouse Costa. The acquisition was finalized in January 2019, and now the U.S. beverage giant has access to almost 4,000 Costa stores in 32 countries. Coffee is the second most-traded global commodity after oil, and the United States is the largest coffee market in the world, with 450 million cups consumed daily. The possibilities are endless with Coke’s new global coffee platform, and the acquisition is likely to have a ripple effect for major coffee chains like Starbucks. What will transpire next?

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  • Author Bio

    Ahmed Maamoun worked in the fields of international business and marketing from 1991 to 2002, employed by multinational companies in the Middle East and New Zealand. In 2003 he became a college professor, and he has since taught management and marketing classes at both undergraduate and MBA levels, including international business, marketing management, international management, strategic management, principles of marketing, international marketing, consumer behavior, marketing research, marketing strategy, fundamentals of marketing, retailing, advertising, and green marketing. His research has been published in the Journal of Business Case Studies, the Journal of Business & Economics Research, Ivey Publishing, Case Research Journal, and Business Studies Journal. He lives and teaches in the United States.

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