"Cola plans to expand the Costa chain in Europe and Asia, especially in China," said analyst Dara Mahsenian at Morgan Stanley.
He believes the takeover is about the international expansion of the noise emperor, who writes The Street.
Coca-Cola stated in February that it is the intention to become a "fuller drinking company" and that the company "must be bigger than our original brand".
Coca-Cola buys coffee from the British Whitbread Plc.
Whitbread has previously stated that they wanted to get rid of Costa to focus more on the fast-growing hotel chain Premier Inn, according to the Financial Times.
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Starbucks dominates in China
But Cola will have to fight for every corner in China, because the coffee giant Starbucks has secured 59 percent of the market in the country through its 2,800 sales outlets.
Growth is therefore a struggle for every coffee cup, because Starbucks itself has expansion plans in China and plans to have 6,000 points of sale in five years.
"The chain has a good chance of becoming a real threat to Starbucks in China, where the coffee market still has significant potential and is growing rapidly," said Jonathan Davison, a global analyst of GlobalData to Business Insider.
Costa Coffee has the best grip on Britain, where the chain has more than 2,400 outlets and a total of 3912 stores in 31 different countries.
Costa Coffee is not available in the US.
The case continues under the photo.
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BRITISH: Costa Coffee is in England, Starbucks is in the United States. The local café in both large and small towns. On Friday it became clear that Coca-Cola bought the coffee chain for $ 42 billion from the British company Whitbread Plc.
"style =" width: 100%; "aria-describedby =" figcaption # 24429639 "/> BRITISH: Costa Coffee is in England, Starbucks is in the United States. The local café in both large and small towns. On Friday it became clear that Coca-Cola bought the coffee chain for $ 42 billion from the British company Whitbread Plc.
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Thin margins
Several analysts believe it is good for Cola and go for new markets with new products.
But coffee outputs are used on very thin margins, says analyst Moshenian.
"Although analysts will appreciate revenue growth and focus on beverages other than soft drinks, I think many think about the retail trade aspect and this can lead to lower operating margins.
According to Global Data, the drinking market in China alone has a value of $ 34.2 billion in 2022 and hot drinks have more than doubled in the last five years, writes Business Insider.
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