Coca-Cola reportedly pulls plug on Costa Coffee sale

The Coca-Cola Company has reportedly abandoned plans to sell British coffee chain Costa Coffee, after offers from private equity firms failed to meet expectations. According to the Financial Times , the US soft drinks giant ended talks with remaining bidders for Costa in December, calling a halt to an auction process which had lasted several months. The newspaper cited sources “familiar with the matter”, who said private equity firms TDR Capital and Bain Capital Special Situations had both made it to the latter rounds of negotiations before talks collapsed. Apollo, KKR and Centurium Capital, were involved at earlier stages. Talks over a deal with TDR would have seen Coca-Cola retain a minority stake in Costa Coffee. The decision to end efforts to find a buyer for Costa, which has more than 2,700 branches across the UK and Ireland, comes as Coca-Cola’s CEO Henrique Braun prepares to replace James Quincey as chief executive in March. According to the source, the company could still revive plans to sell Costa at a later date. Reports began swirling back in August 2025 that the US multinational was planning to sell the high-street coffee chain , after Coca-Cola chief executive James Quincey said it had “not quite delivered” and was “not where we wanted it to be from an investment hypothesis point of view”. Costa’s operating loss more than doubled to £13.5m (€15.5m) on revenues of £1.2bn in 2024, according to accounts filed at UK Companies House. The company blamed weak high street footfall and competition from cheaper rivals. Coca-Cola completed the £3.9bn purchase of Costa Coffee back in January 2019. Coca-Cola’s decision to halt the sale of Costa Coffee underscores the challenges facing the UK’s high-street coffee market, where rising costs and shifting consumer habits have squeezed margins. While the company may revisit a sale in the future, for now Costa remains firmly under Coca-Cola’s umbrella as Henrique Braun prepares to take the reins in March. Whether the coffee chain can turn around its fortunes amid fierce competition will be one to watch. Coca-Cola has not yet responded to request for comment.