Coca-Cola Targets Cafe Coffee Day After Costa
Coca-Cola, the largest beverage company in the world, has started to talk with the officials of Cafe Coffee Day in order to gain a significant amount of stake in Cafe Coffee Day. So, Coca-Cola acquiring Cafe Coffee Day is something that may happen in the future.
Almost ten months ago, Coca-Cola acquired Costa Coffee. It’s an UK-based company, and it cost Coca-Cola nearly $5.1 billion. Needless to say, that it is a massive amount. It is also certain that Coca-Cola needs to spend a considerable amount of money (once again) to control Cafe Coffee Day(CCD) . So why is Coca-Cola so interested in buying the company?
If you think about it, the answer is not too difficult. The soft drinks giant is looking to take control of the fast-growing cafés space. They want to make sure that the competition is less and their business can prosper. And to be fair, it is the perfect opportunity for Coca-Cola.
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Over the last two years, Cafe Coffee Day struggled to expand its business because of its debt. If Coca-Cola decides to acquire Cafe Coffee Day, it will mean that Cafe Coffee Day will have the much-needed money to reduce its debt.
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However, the negotiation is in the early stage. Both companies refused to make any comments on this.
“This news is absolutely speculative in nature and as a matter of company policy, we do not have any comments to offer at this point in time,” Said a Coca-Cola spokesperson.
The bottom line is that it is still uncertain whether the deal will take place or not. However, considering CDC’s state right now, there is a good chance that Coca-Cola will be able to acquire a significant stake in Café Coffee Day.
Let us know about your thoughts on Coca-Cola entering the coffee market and also on acquiring the prominent Indian coffee chain Cafe Coffee Day.