The coffee chain’s parent firm, Coca-Cola, has reported good trading for the fourth straight quarter in both its largest and important growth markets. For a fourth consecutive quarter, Coca-Cola has given Costa Coffee credit for its impressive performance in China and the UK.
The beverage giant in the US announced that its overall revenues for the time period that ended September 29, 2023, increased by 8% to $12 billion. Over the course of the period, total unit case volumes—which are equivalent to 5.67 liters of beverage product—grew by 2%. Coffee increased by 6% while Coca-Cola’s water, sports, coffee, and tea categories all saw 1% growth.
In light of the company’s year-to-date performance, we are increasing our full-year top- and bottom-line guidance after a generally strong quarter. James Quincey, the chairman and chief executive officer of The Coca-Cola Company, stated, “Our leading collection of brands, along with an aligned and driven system, position us to win in the competitive landscape today while simultaneously laying out the foundation for the long term.”
Costa Coffee was established in the city of London in 1971 and now has 2,700 locations in the UK in addition to over than 1,100 locations worldwide. The London-based coffee company opened about 450 locations in China as of 2006.
Costa, the London-based coffee chain that Coca-Cola acquired for £3.9 billion ($5.4 billion) in 2018, is a prime example of the company’s worldwide aspirations. Over the course of the last 12 months, Costa has moved into or re-entered nine new international countries, including the USA, Oman, Morocco, Georgia, for instance, Pakistan, Austria, Azerbaijan, Uzbekistan, and Japan.
Amidst improving post-pandemic sales, Costa Coffee declared in October 2023 that it had achieved full-year profitability in 2022. In the twelve months ending December 31, 2022, the UK-based company reported a 21% year-over-year increase in sales, reaching £1.1 billion ($1.36 billion).
Georgia Coffee, a Japanese ready-to-drink brand, is part of Coca-Cola’s coffee portfolio in addition to its packaged and retail Costa Coffee businesses. The Atlanta-based beverage conglomerate purchased a thirty percent share in Casa Del Caffè Vergnano, a high-end Italian coffee roaster, in June 2021.