Deals·October 21, 2026 at 12:30 AM EDT·1 source
How Coca-Cola’s $5 Billion Costa Coffee Deal Went Wrong
KO -2.8%
KO · last 30 trading days-0.8% since the news
News
acquisition, log scale$5.0B
$100M$1B$10B$100B
EV / EBITDA12.7x
0x30x
What happened
- Coca-Cola’s acquisition of Costa was intended to build a global business in self-serve espresso machines and canned coffee.
- The strategy instead primarily resulted in Coca-Cola operating coffee shops in the UK.
Acquisition value
$5 Billion
Why it matters
The outcome highlights execution and strategic-integration risks in consumer M&A, particularly when an acquisition’s operating model differs from the buyer’s original growth thesis.
Deal terms
acquisition
Coca-Cola → Costa
Value
$5.0B
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Timeline
- EarlierOct 15KFC Is Moving to Ditch Pepsi for Coke in Thousands of Restaurants
- First reported by BloombergOct 21How Coca-Cola’s $5 Billion Costa Coffee Deal Went Wrong
Who is involved
acquiringHow Coca-Cola’s $5 Billion Costa Coffee Deal Went WrongCostatargetCoca-ColaKO · buyer
CompanyThe deal
Sources (1)
- BloombergOct 21How Coca-Cola’s $5 Billion Costa Coffee Deal Went Wrong
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