Coca-Cola is facing challenges with its coffee venture as coffee volumes dropped 3% last year. The company generated $3.13 billion from its Global Ventures segment in 2024, representing just 6.7% of total sales. Coca-Cola is now reconsidering its position as a global growth driver in the coffee market.

In contrast, Coca-Cola’s recent acquisitions have been relatively muted, with only $315 million disclosed last year. The company’s marquee acquisitions since 2007 total over $27 billion, including CCE North America, Glacéau/Vitaminwater, and BodyArmor. Recent activity has focused on tax-credit partnerships, signaling a pullback in M&A cadence.

Coca-Cola is reportedly exploring the potential sale of its UK-based coffee chain, Costa Coffee. The company acquired Costa Coffee in 2018 for £3.9 billion, but analysts now expect it to fetch only £2 billion. Despite underperformance, Costa Coffee has paid over £250 million in dividends to Coca-Cola since the acquisition.

Coca-Cola recently reported its Q2 results, with net sales rising 1% year-over-year to $12.5 billion and organic sales increasing by 5%. GAAP EPS came in at $0.88, and comparable EPS at $0.87. Management reaffirmed full-year 2025 guidance, expecting 5-6% organic revenue expansion and comparable EPS growth of approximately 3%.

Coca-Cola CEO James Quincey hinted at a potential strategic reset for the company’s coffee strategy. Costa Coffee, a popular chain with over 2,000 UK stores and a global presence, has faced competition and restructuring challenges. Despite a strong dividend history, Coca-Cola’s stock has seen mixed performance this year.

Read more at Yahoo Finance: Coca-Cola quietly brews shock exit from beloved coffee giant