Costa Coffee

Costa Coffee is a global coffee chain founded in 1971, now part of Coca-Cola, with 4,000+ stores and 15,000+ Costa Express machines worldwide.

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Costa Coffee

Historical Timeline

1971 — Sergio and Bruno Costa open first roastery in London
1978 — First Costa Coffee shop on Vauxhall Bridge Road
2000s — International expansion (Middle East, Asia)
2018 — Coca-Cola acquires Costa for $5.1B
2019 — Costa Express machines reach 10,000+ locations
2023 — 4,000+ stores across 40+ countries

Business Model

Coffee shop chain with company-owned and franchised locations. Costa Express vending machines (high-margin), and at-home products distributed through Coca-Cola's network.

Competitive Moat

Coca-Cola's distribution network gives access to retail channels Starbucks cannot reach. Costa Express (15,000+ machines) generates high-margin revenue from non-traditional locations.

Key Data

Stores: 4,000+ across 40+ countries; Parent: Coca-Cola (2018, $5.1B); Express machines: 15,000+; Blend: Mocha Italia since 1971

Interesting Facts

The Coca-Cola acquisition was Coke's largest-ever food acquisition — a $5.1B bet that hot beverages would be the next growth frontier.