""the investment hypothesis didn't work out as we expected.""
""much more growth""
""super attractive category""
""just didn't create a multiplier so far that we are looking for,""
Coca-Cola acquired Costa Coffee for about $5.1 billion seven years ago to gain a foothold in the coffee industry. The CEO said the investment hypothesis did not work out as expected and that growth outside retail stores fell short. Coca-Cola continues to view coffee as a large, profitable and "super attractive" category and has invested in Costa's UK stores and automated coffee machines. The Costa business failed to produce the multiplier effect Coca-Cola sought, and the company is reflecting on future strategy, including reports that it explored a possible sale of Costa. Coca-Cola's core business remains selling drink concentrates to partners; quarterly net sales grew 5% to $12.46 billion.
Read at Business Insider
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