Costa Coffee – 1,650 jobs 3 September: The company, which was bought by Coca-Cola two years ago, is cutting up to 1,650 jobs in its cafes, more than one in 10 of its workforce. The assistant
Before the deal was unveiled Whitbread boasted a valuation of around £7.3 billion with analysts attributing £2.3 billion to Costa Coffee, implying that Coca-Cola is paying up to a 70% premium. In terms of multiples, the deal is 24.5 times greater than Costa’s annual underlying operating profit in the last financial year.
Why did Coca-Cola buy Costa Coffee? The price of Costa Coffee doesn’t make a dent in Coca-Cola’s $191 billion valuation but it is one of its most significant acquisitions. Although Coca-Cola can often be considered as a self-propelling behemoth, the company has been losing its fizz over recent years and its prospects have been going flat.
Coca-Cola announced on Friday that it would buy British coffee-shop chain Costa Coffee for $5.1 billion. Analysts say the move is likely to have a major impact on Starbucks, especially as it looks
Coca-Cola, valued at $252 billion, is the world’s largest drinks company with more than 500 brands in 200 countries, including Dasani water and Fuze tea. In 2018, Coca-Cola bought Costa, the British coffee shop chain, from Whitbread for £3.9 billion.
Coca-Cola is making a move into the hot beverage market with the acquisition of Costa for £3.9bn as it looks to diversity away from its core business of sugary drinks. Coca-Cola is acquiring the Costa coffee chain from owner Whitbread as it looks to move into the coffee market and shore up its business as sales of fizzy drinks high in sugar
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coca cola bought costa coffee
