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Costa Coffee’s Losses Double as Coca‑Cola Weighs £2 Billion Sale

Talks with preferred bidder TDR Capital have reportedly hit a price impasse.

Overview

  • Newly filed 2024 accounts show Costa’s operating loss widened to £13.5m from £5.8m a year earlier.
  • Sales in 2024 rose about 1% to roughly £1.2bn, highlighting pressure on profitability despite slight growth.
  • Coca‑Cola is seeking around £2bn for the chain, with negotiations with TDR Capital reported to be stalled over valuation.
  • Analysts point to a triple threat from value players such as Greggs, premium rivals and fast‑growing independents, with one describing a UK market at “peak Costa.”
  • Higher wage and National Insurance costs plus sharply rising coffee‑bean prices are squeezing margins, while Costa says it is investing in its UK estate and global expansion.