Costa Coffee, the chain owned by Coca-Cola, faces significant financial headwinds. Operating losses for the brand have more than doubled over the past two years.
The poor financial performance complicates efforts to find a buyer for the coffee brand. Widening losses stem from reduced foot traffic and intense competition. This pressure comes from both established rivals and newer, value-focused brands popular with younger consumers.
To revitalize sales and attract a younger demographic, Costa recently introduced a new range of matcha drinks. The effectiveness of this move in countering competitive pressure remains uncertain. The ongoing struggles pose a notable challenge for Coca-Cola, which acquired the chain specifically to diversify its portfolio beyond soft drinks.