Coca-Cola digs into coffee with $7b Costa purchase
31 August, 2018, 17:58 | Author: Melinda Barton
"Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand", said James Quincey, Coca-Cola President & CEO.
Because Coca-Cola expects the transaction to close in the first half of 2019, there is no change to 2018 guidance.
SodaStream makes machines that carbonate home tap water.
Costa was one of the few big coffee chains up for sale after Nestle SA and the Reimann family's investment company JAB both went on acquisition sprees in the segment.
Whitbread has owned Costa since 1995, when it bought it for just £19m.
Whitbread's share price soared 17 per cent in early afternoon trading in London.
While Costa does not compete in the USA market, it is the U.K.'s leading coffee chain and operates several hundred outlets in China. "Costa has strengths in many countries and in many key distribution channels of the coffee business". He said: "Costa is a platform with a great supply chain in coffee, a world-class roastery, a strong retail presence and a vending system".
The leisure group, which owns the Premier Inn hotel business, had been under pressure from shareholders to demerge and list the coffee chain as a separate company.
However, the proposed sale has to get the approval of Whithead's shareholders, as well as permission from anti-trust watchdogs, the firm said.
"(This is) certainly a big coup for Whitbread that they managed to sell Costa at a valuation much above what anyone would have expected", Bernstein analyst Richard Clarke said. The spinoff would have taken as long as two years, the company had said.
It has recently expanded into China after growth in Britain became harder to find in a market bursting with chains such as Starbucks, Caffe Nero and thousands of independent outlets. "A significant majority" of the proceeds will be given to the shareholders, the firm added.
Nestle joined the trend of coffee giants taking aim at smaller niche producers, buying Blue Bottle Coffee and Chameleon Cold Brew.
Coca-Cola's purchase adds to its Georgia coffee brand in Japan and the USA group's coffee products in other countries.
Bankers from Rothschild advised Coke, while Whitbread used Goldman Sachs, Morgan Stanley and Deutsche Bank.
So instead of an epic naval and aerial clash, expect Russian Federation to stick to its real weapon for modern war: propaganda. This time, Russian Federation looks as if it's up to more than simply conducting a public-relations battle with the US.
The most recent broadside follows the president's 24 August claim that social media "giants" are "silencing millions of people". The president has not named Jones - whose reputation he once described as "amazing" - in any of his tweets on the issue.
Austen said the Canadians had been regular contact with the NAFTA negotiators. "So if they had to compromise on energy, so be it". Trump has frequently condemned the 24-year-old NAFTA trade pact as a job-killing "disaster" for American workers.
He has thrown for 316 yards with two touchdowns and one interception over three games while completing 28 of 38 passes. This article dug into Bridgewater's stats and film to look at why he can be a franchise quarterback ....
The Galaxy J2 Core launched first in Malaysia and India on August 24 and will expand to other markets in the "near future". The device has an 8-megapixel rear primary camera and a 5-megapixel sensor for the front selfies.
The teams were tied 2-2 for most of the second half until Chelsea's Marco Alonso scored the game-winner in the 81st minute. Arsenal are in action against West Ham at the Emirates today, as Unai Emery aims to get a first win as Arsenal manager.
Guy , however, transitioned with her , moving into Kensington Palace and seemingly adapting well to his new regal lifestyle. And he recently likened the entire Royal Family to Scientologists - accusing them of being "like a cult".
Trump tweeted about McCain after his death but has passed up several chances to comment publicly on the Arizona senator. President Trump reversed course Monday, ending his conspicuous silence about the death of his political rival Sen.
The actions resulted in the end of a production deal with FX Networks and the cancellation of a movie release. Dworman said, adding "there can't be a permanent life sentence on someone who does something wrong".
The extension, which includes more than $100 million in guarantees, keeps Rodgers under contract for the next six seasons. The 14th-year veteran is the league's all-time leader in passer rating (103.8) and interception rate (1.6 percent).
The second half was less impressive, as Spurs stepped up a level and put two quick goals past United , all but ending the game. Manchester United suffered a humiliating 3-0 loss against Tottenham Hotspur to compound a disastrous few weeks for the club.
Star-studded funeral honours Aretha Franklin
A tribute concert , starring The Four Tops, Angie Stone and Regina Belle was also hosted on Thursday evening in her honour. The gold dress is the fourth outfit Franklin has worn during a week of events leading up to her funeral.
McGahn Will Exit White House Soon
He was one of the first establishment Republicans to work with Mr Trump, joining the NY businessman as counsel to his campaign. The White House lawyer reportedly threatened to resign past year because Mr Trump was planning to remove Mr Mueller.
Two former presidents expected to speak at McCain's funeral
McCain had been planning his funeral services over the a year ago and his family made clear that president Trump was not invited. The repeal was a Trump priority, and the president never forgave McCain. - Two former presidents are expected to speak at Sen.
Carson Wentz still not cleared for contact by docs
"I just see glimpses of a young player who is going to be able to contribute to our football team in his rookie year". He'd also like to know at least a week in advance if Wentz will be ready to go for Week 1.