Could this giant UK coffee chain land in South Africa?


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Coca-Cola moved into the coffee space in a big way in late August with a $5.1 billion acquisition of UK chain, Costa Coffee.

Costa boasts 3,800 stores in 32 countries including a presence in China.

The acquisition of Costa from parent company Whitbread, Coca-Cola said, will give the company “a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion”.

Costa ranks as the leading coffee company in the United Kingdom and has a growing footprint in China, among other markets.

When BusinessTech asked Coca-Cola if the chain would come to South Africa, a spokesperson said: ” the company’s acquisition of Costa Coffee will indeed give the company an opportunity to expand Costa’s footprint across Europe, the Middle East and Africa. However, we do not have any specifics beyond that at this point.”

The company’s Costa Express model suits the local market as it offers a variety of on-the-go locations, including petrol stations, movie theaters and travel hubs. Costa, in various formats, has the potential for further expansion with customers across the Coca-Cola system.

Costa also offers a self-serve coffee bar model, which extends 6,000 machines, serving over 80 million cups of coffee every year, across nine international markets. Costa Express said it is on track to deliver its target of 8,000 machines by 2020.

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“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” said Coca-Cola President and CEO James Quincey.

“Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”

Having secured the rights to Starbucks outlets in South Africa in July 2015, Taste Holdings has launched in 12 locations, competing with the likes of Woolworths, Mugg & Bean, Seattle Coffee Company, Motherland Coffee Company, and and increasing number of independent roasteries and cafés.

Source: BusinessTech

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