US beverage giant Coca-Cola attributes its robust coffee segment sales last year to Costa Coffee’s continued strong post-pandemic trading in the UK and outlet growth internationally
Sales in Coca-Cola’s coffee segment grew 13% in 2022 | Photo credit: Costa Coffee
Costa Coffee's post-pandemic recovery continues to be a key contributor to parent company Coca-Cola's revenues.
Atlanta-based Coca-Cola, which acquired Costa Coffee for £3.9bn ($5.4bn) in 2018, reported full-year 2022 revenue growth of 11% to reach $43bn.
Sales in the company’s coffee segment grew 13% over the 12-month period, primarily driven by the strong post-pandemic trading of Costa Coffee stores in the UK, where it operates 2,700 stores.
World Coffee Portal research found the total branded UK coffee shop market is now valued at £4.9bn ($5.9bn), representing an increase of 11.9% over the last 12 months, and has expanded to reach 9,885 outlets.
Coca-Cola also cited the ‘continued expansion’ of Costa Coffee across international markets as boosting sales.
In August 2022 Costa Coffee opened its first bricks-and-mortar outlet in the US, and announced market entries in Morocco, Georgia, Pakistan and Austria in its fourth quarter of 2022.
“While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment. We are keeping consumers at the centre of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution. Our growth culture is leading to new approaches, more experimentation, and improved agility to drive growth and value for our stakeholders,” said James Quincey, CEO, The Coca-Cola Company.
Coca-Cola expects to achieve group revenue growth of 8% in 2023.
In September 2022, Costa Coffee announced New York-based marketing agency Wunderman Thompson as its global agency of record for brand strategy.
The WPP-owned creative agency is also the Global Marketing Network Partner for Coca-Cola and will coordinate Costa Coffee’s creative marketing and branding across the coffee chain’s international markets.