Coca-Cola credits Costa Coffee's retail recovery in the UK for the strong performance of its coffee category in the third quarter
Coca-Cola's coffee business has been bolstered by the reopening of Costa Coffee stores in the UK | Photo credit: Costa Coffee
Coffee has been a key performer in Coca-Cola's third quarter, with the US beverage giant reporting 16% net revenue growthas to $10bn over the period.
Coffee volumes grew by almost a fifth (19%), with net revenues in the category growing 47% in the quarter. Coca-Cola said the strong results were primarily driven by the reopening of Costa Coffee retail stores in the UK, where the majority of its 3,800 stores worldwide are located.
“While the recovery continues to be asynchronous around the world, we are investing for growth to drive long-term value for the system. Our strong system alignment and networked organisation are helping us unlock enormous potential in our brands and across our markets,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
Costa, which was purchased by Coca-Cola in 2018 for £3.9bn ($5.4bn), has sought to grow its global portfolio of coffee shops and self-serve machines in 2021.
In February 2021, Costa partnered
with Romanian petrol station operator Auchan to introduce self-serve machines at 400 ‘MyAuchan’ stores across the country over the next five years.
In August, New Delhi-based franchise operator Devyani International Limited announced
a five-year extension of its partnership with Costa Coffee in India, where the coffee chain has around 40 stores.
Costa Coffee also entered
the Belgian market in October, introducing a premium self-service coffee concept designed for hospitality venues, with plans to operate 200 units across Belgium by the end of 2021.
Looking to the year ahead, Coca-Cola said it would introduce Costa’s ready-to-drink (RTD) products into new markets, including Japan and China.