Coca-Cola exploring sale of Costa Coffee: Report

Atlanta: U.S. soft drinks company Coca-Cola is working with investment bank Lazard to review options, including a potential sale, of British coffee chain Costa, which it acquired in 2018 for over $5 billion, Sky News reported on Saturday.

Reuters could not immediately verify the report. Coca-Cola, Costa, and Lazard did not immediately respond to requests for comment.

Atlanta-headquartered Coca-Cola has held initial talks with a small number of potential bidders for Costa, including private equity firms, Sky News reported, citing unidentified sources.

The report said indicative offers are expected in early autumn, while noting that Coca-Cola may ultimately choose not to proceed with a sale.

Costa Coffee operates in 50 countries, with more than 2,700 coffee shops across the UK and Ireland and over 1,300 more outlets globally, according to its website.

Coca-Cola acquired the chain more than six years ago to strengthen its push into healthier beverages and compete with Starbucks (SBUX.O) and Nestle (NESN.S), in the global coffee market.

In the United States, food companies are seeking healthier substitutes as they respond to Health Secretary Robert F. Kennedy Jr.’s Make America Healthy Again campaign.

In July, President Donald Trump said Coca-Cola had agreed to use real cane sugar in the United States.