Coca-Cola engages Lazard to explore sale options for Costa Coffee, with indicative offers expected by autumn 2025

UK – Coca-Cola has engaged investment bank Lazard to explore strategic options for its British coffee chain, Costa Coffee, including a potential sale, according to recent media reports.

The discussions signal the soft drinks giant’s intent to evaluate the best path forward for the expanding coffee brand it acquired in 2019.

Coca-Cola has initiated talks with multiple potential bidders, including private equity firms, to gauge interest and assess valuation prospects for Costa Coffee.

These discussions form part of a broader strategic review aimed at optimizing Coca-Cola’s portfolio and capital allocation.

Costa Coffee operates in approximately 50 countries worldwide, making it one of the largest coffee chains with a significant international footprint.

The brand is well recognized for its retail cafés, drive-thrus, and growing grocery product lines.

Indicative bids for Costa Coffee are expected to be submitted by early autumn 2025, although Coca-Cola has not confirmed any definitive decision to proceed with a sale.

The company remains open to multiple outcomes as part of its ongoing evaluation process.

Potential buyers will likely consider Costa Coffee’s strong presence in the fast-growing global coffee market, as well as its growth opportunities amid increasing consumer demand for premium and convenient coffee experiences.

Coca-Cola’s review reflects evolving priorities within the beverage industry, where companies reassess non-core assets to focus on high-growth categories aligned with shifting consumer preferences.

The process led by Lazard is designed to optimize shareholder value and ensure that any decision regarding Costa Coffee aligns with Coca-Cola’s long-term strategic goals.

Industry analysts note that a sale of Costa Coffee could attract significant interest given the brand’s scale, innovation capabilities, and established market position.

Alternatively, Coca-Cola might decide to retain Costa Coffee and accelerate its development through additional investments or partnerships, depending on the offers received.

As the situation develops, stakeholders await clarity on Costa Coffee’s future direction and the potential implications for the global coffee retail sector.

This exploration phase underscores the dynamic nature of beverage portfolios and the ongoing industry reshaping driven by consumer trends and competitive landscapes.

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