Coca‑Cola halts sale of Costa Coffee after bids fall short of target

Coca‑Cola has stopped the auction process to sell Costa Coffee after offers from private equity bidders came in below the company's expectations. Discussions with remaining bidders concluded in December 2025 and the company has halted the sale for now, though it may revisit a divestment in the medium term.

Bidders that reached late stages included TDR Capital and Bain Capital’s special situations fund, while earlier participants in the process included Apollo, KKR and Centurium Capital. Coca‑Cola had been seeking roughly £2 billion for Costa, a price tag that is about half of what the company paid for the chain in 2018. The decision to pause follows an extended review and reflects a reassessment of the chain’s market position and near‑term profitability.

Costa has faced operational headwinds in recent years. The chain has encountered pressure from value competitors in key markets, and profitability has declined in some territories. Those factors contributed to bids that did not meet the seller’s valuation, and Coca‑Cola now faces the prospect of writing down Costa’s value further on its books. Management changes at Coca‑Cola are also on the horizon, including a planned transition at the chief operating officer level, which could reshape strategic timing for any future sale.

For the coffee community this is a development to monitor rather than an immediate disruption. Franchise owners, local managers and baristas should expect business to continue under current ownership in the short term, but ties to wider corporate strategy could affect investment in refurbishment, rollouts and menu testing. Suppliers and real estate partners may see a slower decision cycle on renegotiations or new openings while the company reassesses priorities.

Customers can reasonably expect day‑to‑day service to remain stable, but keep an eye on loyalty offers and pricing. Value rivals and independent operators will sense an opening to capture traffic if Costa tightens promotions or slows expansion. For local coffee shops and chains, the pause offers both competitive breathing room and an opportunity to differentiate on service, local sourcing and in‑store experiences while a major player recalibrates.

Our two cents? Treat this as a pause, not a collapse. Watch your local Costa for small operational changes, support teams on the floor who handle the daily grind, and if you’re involved professionally—franchisee, supplier or landlord—use this window to review contracts and cash flow plans. This is a story about strategy and valuation, but the cup in your hand should keep tasting the same for now.