Costa Coffee hails ‘strong progress’ after Coca-Cola scraps sale

Costa Coffee has expressed satisfaction with its year of "strong progress" following the decision by its owner, Coca-Cola, to abandon plans to sell the company. Costa reported a five percent revenue growth to £1.3 billion and returned to operating profit last year. Prior to abandoning the sale in January, Coca-Cola had been targeting a private equity buyer, but failed to find suitable bidders meeting their expectations.

Costa's chief executive, Philippe Schaillee, attributed the positive results to the company's investment plan, which includes branch refurbishments and product innovation leading to increased sales and enhanced productivity. The firm recorded an operating profit of £20 million in 2025, reversing a £13.5 million loss in 2024, which was caused by "soft footfall" and competition from value-led chains.

However, Costa's statutory profit decreased by seven percent to £62 million. Despite cheaper coffee alternatives gaining market share, Costa is slowing its expansion efforts, opening 79 new UK stores in 2025 and planning to add between 40 and 50 more in the following year. Currently, Costa holds the highest proportion of sites within a five-minute drive of another brand (73 percent) among UK coffee chains.

Costa is investing in Matcha and Ube drinks, which have driven customer growth, especially during summer heatwaves. The company serves over 4 million cups of coffee daily and has 6 million active loyalty scheme members. Costa was acquired by Coca-Cola for £3.9 billion from Whitbread in 2018, with initial interest from TDR Capital, Bain Capital, and Apollo.