A Costa Coffee store in London, UK | Photo credit: Costa Coffee

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Coca-Cola has credited the strong performance of Costa Coffee in the UK and China for the fourth consecutive quarter.
 
The US beverage giant reported an 8% rise in total revenues to $12bn for the three months ended 29 September 2023. Total unit case volumes, defined as equal to 5.67 litres of beverage product, grew 2% during the period. Coca-Cola’s water, sports, coffee and tea category grew 1%, with coffee growing 6%.
 
“We delivered an overall solid quarter and are raising our full-year top-line and bottom-line guidance in light of our year-to-date performance. Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today while also laying the groundwork for the long term,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
 
Founded in London in 1971, Costa Coffee operates 2,700 UK stores in addition to more than 1,100 outlets internationally. The London-based coffee chain entered China in 2006 and currently operates around 450 stores.
 
Demonstrating Coca-Cola’s global ambitions for Costa, which it acquired for £3.9bn ($5.4bn) in 2018, the London-based coffee chain entered or re-entered nine new international markets over the last 12 months – the USA, Oman, Morocco, Georgia, Pakistan, Austria, Azerbaijan, Uzbekistan and Japan.
 
In October 2023 Costa Coffee reported it had returned to full-year profitability in 2022 amid improved post-pandemic trading. The UK-based business posted 21% year-on-year sales growth in the 12 months ended 31 December 2022 to reach £1.1bn ($1.36bn).
 
Alongside its Costa Coffee retail and packaged coffee business, Coca-Cola’s coffee portfolio also includes Japanese ready-to-drink brand Georgia Coffee. In June 2021 the Atlanta-based beverage giant acquired a 30% stake in premium Italian coffee roaster Casa Del Caffè Vergnano.