Coca-Cola is reconsidering its $5.1 billion acquisition of Costa Coffee due to stalled growth. In the US, Costa focuses on B2B and packaged goods, with 250 coffee vending machines. Globally, Costa operates 4,000 stores and 14,000 self-serve machines, offering RTD beverages in Europe and Asia.

Costa’s revenue dropped from £1.3 billion to £1.22 billion in fiscal year 2023. Coca-Cola faces challenges with Costa’s US strategy, failing to gain traction against tough competition. The company’s purchase of Costa just before COVID has been impacted by supply chain shortages and inflation.

Coca-Cola’s stock has risen 12% this year, outperforming the S&P 500 and PepsiCo. Analysts suggest scaling up Costa’s RTD offerings in international markets could drive growth. However, Costa’s lack of clear commitment and small-scale RTD launches have hindered its progress within the Coca-Cola portfolio.

Read more at Yahoo Finance: Coca-Cola’s failed coffee investment faces uncertain future