Coca-Cola has highlighted the continued recovery of Costa Coffee in the UK, as well as the expansion of the brand globally, as positively impacting its 12% second-quarter rise in revenues
Coffee is reported as Coca-Cola’s leading category with sales volume growth of 15% for the period | Photo credit:
Costa Coffee's continued UK recovery, where it operates nearly 2,800 stores, has helped parent company Coca-Cola trade steadily in the second quarter of 2022.
The Atlanta-based beverage giant posted a 12% rise in revenues to $11.3bn for the three months ending 1 July 2022, compared to the same period in 2021.
Coca-Cola said that overall company performance had benefited from Costa Coffee’s UK recovery, which continues to rebound following store closures and limited trading in the UK for large parts of 2020-21, and the continued global expansion of the brand.
However, revenues for Coca-Cola's Global Ventures division, formed in 2019 following the acquisition of Costa Coffee, fell 2%.
Coffee is reported as Coca-Cola’s leading category with sales volume growth of 15% for the period, ahead of sparkling soft beverages (8%), sports drinks (7%) and juice and dairy (6%).
“Our results this quarter reflect the agility of our business, the strength of our streamlined portfolio of brands, and the actions we’ve taken to execute for growth in the face of challenges in the operating and macroeconomic environment,” said James Quincey, CEO, The Coca-Cola Company.
Coca-Cola expects to achieve overall revenue growth of 12% for 2022, an increase on its prior forecast of 8%, but cites commodity price inflation as a likely headwind for the second six months of the year.
Costa Coffee, which operates over 4,000 coffee shops globally, was purchased by Coca-Cola in 2018 for £3.9bn ($5.4bn).
Shakir Moin, currently Chief Operating Officer for Costa Coffee in the US, will become the chain’s Interim CEO at the end of July 2022 while Coca-Cola seeks a permanent successor for the departing Jill McDonald.