Costa Coffee stores in the UK and China were key drivers of second quarter growth for Coca-Cola's Global Ventures division
Costa Coffee now operates stores in 33 countries globally | Photo credit: Costa Coffee
Robust trading for Costa Coffee in the UK and China has driven strong second quarter coffee segment sales for parent company Coca-Cola.
The Atlanta-based beverage group, which acquired Costa Coffee for £3.9bn ($5.4bn) in 2018, achieved 6% total revenue growth to reach $12bn in the three months ended 30 June 2023.
Although a relatively small contributor to total sales, Coca-Cola’s coffee segment continues to post steady revenue and unit volume growth – the latter reaching 5% for the period.
Costa Coffee’s sales performance in the UK and China was credited with driving 10% revenue growth for Coca-Cola's Global Ventures division – created in 2018 to maximise value from acquisitions and investments. Other Global Ventures brands include Monster energy drinks, Innocent juices and smoothies and Dogadan Tea.
Founded in London in 1971, Costa Coffee operates 2,700 UK stores in addition to more than 1,100 outlets internationally.
The coffee chain currently holds a 27% share of the UK’s 9,990-store branded coffee shop market, ahead of Greggs (23%) and Starbucks (11%).
The coffee chain entered China in 2006 and in 2011 set an ambitious goal of reaching 2,500 stores across the Asian country by 2022. While the coffee chain has only reached around 440 stores to date, the strong results indicate Costa Coffee is benefitting from the lifting Covid restrictions at the end of 2022 and has the potential to catalyse growing demand for premium café experiences across Asia’s most populous nation.
Following its market entry in Uzbekistan in July 2023, Costa Coffee now operates stores in 33 countries globally.