Coca-Cola is working with investment bank Lazard to explore options for its British coffee chain, Costa Coffee, including a potential sale, as reported by Sky News.

The soft drinks giant has initiated discussions with potential bidders, including private equity companies.

Indicative offers for Costa Coffee, which operates in 50 countries worldwide, are expected to be made by early autumn 2025, but a sale is not yet a certainty.

In 2018, Coca-Cola acquired Costa Coffee for more than $5bn, as part of its strategy to strengthen its position in the competitive global coffee market, aiming to challenge rivals such as Starbucks and Nestlé.

The acquisition was reported to be aimed at helping it reduce its reliance on sugary soft drinks.

The potential sale of Costa would align with broader trends in the packaged food sector, where companies are pursuing strategic deals to achieve scale and better cope with the pressures of rising inflation and evolving consumer preferences for healthier options, as reported by Reuters.

During an earnings call in July 2025, Coca-Cola CEO James Quincey hinted that the company’s investment in Costa had not delivered the anticipated returns.

“Our investment in Costa is not where we wanted it to be from an investment hypothesis point of view,” he stated.

In line with changing consumer tastes, Coca-Cola is also responding to growing health-conscious trends. In July, the company agreed to use real cane sugar in its US products, following growing demands for healthier alternatives in the food and beverage industry.