Coca-Cola says the continued recovery of Costa Coffee’s retail business in the UK has positively impacted its first-quarter results – but issues caution over a “highly dynamic and uncertain operating environment”
Costa Coffee's flagship UK business continues to yield posive results for Coca-Cola | Photo credit: Costa Coffee
Coca-Cola has started 2022 in a strong position, posting a 16% rise in first quarter revenues to $10.5bn compared to the same period in 2021.
The US beverage giant said the recovery of its Costa Coffee business in the UK
, where it operates more than 2,400 stores, had contributed to a 28% rise in revenues for its Global Ventures division, which manages the coffee chain.
Costa’s UK recovery also contributed to a 10% overall rise in case volumes for Coca-Cola’s hydration, coffee and tea division and 27% growth in its coffee segment.
The continued expansion of Costa Coffee across international markets also positively impacted the coffee category, Coca-Cola added.
In India, Costa’s franchise partner DIL recently reported
an 88% rise in revenues $1.9m, with the coffee chain now having a 50-store presence in the country.
“We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment,” said James Quincey, Chairman and CEO of The Coca-Cola Company.
Commenting on the war in Ukraine, Coca-Cola said it was continuing to support its employees in the country through humanitarian relief efforts, including contributions and product donations totalling nearly $15m from the Coca-Cola Foundation.
Coca-Cola said it anticipated the decision to suspend its business in Russia, where Costa Coffee operates around 27 stores, would negatively impact revenues by 1-2% for the year.
World Coffee Portal data
shows Russia’s branded coffee chain market exceeded 4,400 outlets in 2021. However, the war in Ukraine has prompted an exodus of international brands from the country, with Starbucks
, McCafé, Lavazza and Huhtamaki
among the companies suspending or divesting their Russian operations.
Costa Coffee does not currently have a presence in Ukraine.