Centurium Capital, a Chinese private equity firm and the majority owner of Beijing-based coffeehouse Luckin Coffee, is reportedly eyeing a bid for Costa Coffee.
According to Bloomberg, people with knowledge of the matter understand Centurium Capital has been assessing whether to propose an offer for the UK coffee chain.
However, any potential arrangements for an offer have not been decided. It is also not known whether the private equity firm would be making an offer itself or via Luckin Coffee, which has expanded to over 26,000 stores in China, with additional sites in Malaysia, Singapore and the US.
In August, Sky News reported Coca-Cola was exploring a potential sale of Costa just five years after acquiring it from Premier Inn owner Whitbread in a £3.9bn deal.
The sale talks come after Coca-Cola reported a 3% decline in coffee sales last year, primarily due to the performance of Costa in the UK.
Just last month, Coca-Cola CEO James Quincey admitted the soft drinks giant expected “much more growth” from the non-retail side of Costa Coffee.
Speaking to investors after Coca-Cola reported third-quarter results on 21 October, Quincey said coffee remained “a super-attractive category” but admitted Costa was “not where we want it to be”.
It follows previous reports that Asda owner TDR Capital, Apollo Management Group, which is the owner of Wagamama’s parent company The Restaurant Group, and US-based private equity investor KKR were all named as potential bidders for Costa.
Centurium Capital has been contacted for comment.
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