Costa Coffee Reports Revenue Growth Following Halted Sale by Coca-Cola
Costa Coffee has declared a year of 'strong progress' following Coca-Cola's decision to cancel the sale of the coffee chain. Costa's revenue rose by 5% to £1.3 billion for the last fiscal year, marking its return to operating profitability. This upward trend comes in the wake of a comprehensive refurbishment plan and new product launches, which have contributed to increased sales and enhanced productivity.
Coca-Cola, which had aimed to transfer ownership of Costa to a private equity entity, abandoned these plans in January due to unsatisfactory bids. Costa's CEO, Philippe Schaillee, emphasized the positive impact of their strategic investments, highlighting the strengthening of the Costa brand and the efforts of its employees.
Despite the positive financial performance, statutory profits for Costa decreased by 7% to £62 million. Meanwhile, Costa faces increased competition from the likes of Greggs, which recently overtook Costa as the largest branded coffee outlet in the UK, operating 2,737 locations compared to Costa's 2,707.
The company is moderating its expansion efforts, having opened 79 new stores in 2025, with plans to open 40 to 50 additional sites over the next year. Costa's refurbishment strategy remains robust, with over 1,063 store remodels completed since 2023, including 305 last year. A further 210 locales are slated for updates in 2026.
Costa continues to attract customers with new product offerings, notably its Matcha and Ube drinks, while its iced beverages gained popularity during summer high temperatures. The scale of Costa's operations allows it to meet customer preferences effectively, serving over 4 million cups of coffee daily and maintaining a loyalty program with 6 million active members.
Coca-Cola initially acquired Costa for £3.9 billion from Whitbread in 2018 and was seeking approximately £2 billion for a potential sale. Reports indicate potential buyers included TDR Capital, Bain Capital, and Apollo Global Management.
