Coca-Cola announced the company will be buying the UK’s very own Costa Coffee brand for $5.1 billion.
This announcement comes within the same week that Starbucks announced its business relationship with Nestle Brands.
While most Americans may have never heard of the brand, it’s as big in the UK as Starbucks is in the States.
With over 2,400 stores in the UK and 3,822 shops around the world the Costa brand is looking to take its global reach to the next level. Coca Cola’s big backing may very well help Costa be a become a contender with Starbucks.
It’s unlikely that the UK coffee giant will ever threaten Starbucks’ number one spot in the US, however, they may give the American coffee chain a run for their money in China.
Jonathan Davison, beverage analyst at GlobalData, wrote in a statement emailed to Business Insider on Friday,”For the time being it is far more likely to offer a serious threat to Starbucks in China, where the coffee market still has significant potential and is growing fast.”Facebook contests by Rewards Fuel