Britain's No. 1 coffee shop, Costa Coffee, should remain subsidiary of Whitbread to ensure global expansion, according to Costa Coffee executive
January 23, 2012
– Britain’s No. 1 coffee shop, Costa Coffee, should remain a subsidiary of Whitbread Plc to ensure Costa’s global expansion, Reuters reported on Jan. 20.
Costa has 40% of the market share in Britain’s coffee shop market, with Starbucks trailing Costa. Worldwide, Costa operates 2,100 stores, making the company the world’s No. 2 coffee shop chain behind Starbucks.
Despite recent speculations regarding Costa demerging from Whitbread, Costa’s Managing Director John Derkach said Costa should remain a subsidiary of Whitbread so the company can continue to expand internationally. Costa plans to operate 3,500 coffee shops by 2016.
The value of Costa’s stand-alone business has been estimated to be more than £1 billion (US$1.6 billion).
The primary source of this article is Reuters, New York, New York, on Jan. 20, 2012.