The Coca-Cola Company (NYSE: KO) is reportedly exploring the sale of its Costa Coffee business after failing to achieve significant growth since acquiring the chain. According to a Semafor report citing sources familiar with the matter, Coca-Cola is reconsidering a divestment after an earlier attempt to sell the asset failed to attract sufficient buyer interest.
Costa Coffee was acquired by Coca-Cola for $5.1 billion in 2018 from the British hospitality group Whitbread. The company previously explored a sale in late 2025 but abandoned the process earlier this year due to limited interest from private equity firms. A potential strategic buyer also considered an acquisition but withdrew over concerns regarding valuation and strategy.
Despite the potential sale, Costa’s standalone business has shown signs of improvement. Costa Ltd reported an operating profit of 20 million pounds in 2025, reversing losses of 13.5 million pounds in 2024 and 5.8 million pounds in 2023. Revenue increased by 5% to nearly 1.3 billion pounds. The company operates approximately 4,000 outlets globally, including 2,700 in the U.K. and Ireland, and employs about 20,000 people. Costa added a net 50 U.K. outlets in 2025 and plans to add another 50 this year.
In other company news, Coca-Cola shares fell about 0.5% in premarket trading on Friday, giving back gains from the previous session. The stock was trading at $87.40 at the time of the report.
