Coca-Cola calls in restructuring advisers at Costa Coffee

Coca-Cola has reportedly brought in restructuring experts at Costa Coffee after it failed to offload the high street coffee chain last year.

AlixPartners is believed to be conducting an operational review of Costa, while Alvarez & Marsal is understood to be advising on its finances, according to the Times.

In February, Coca-Cola confirmed it will retain full ownership of Costa Coffee after bids from private equity firms failed to meet its valuation expectations.

Potential bidders included TDR Capital, which has a controlling stake in the UK arm of fast-growing fried chicken chain Popeyes, and Bain Capital, which has backed Gail’s and PizzaExpress.

Coca-Cola pursued a sale of Costa back in August 2025, six years after it had bought the brand from Whitbread in a £3.9b deal.

At the time of the acquisition, the Atlanta-based drinks firm said it would deliver a “global coffee platform”, but has since struggled with losses, which grew to nearly £13.5m in the 12 months to 31 December 2024.

Costa Coffee was founded by Italian brothers Sergio and Bruno Costa in 1971.

The chain operates around 2,600 cafés in the UK and Northern Ireland and more than 3,900 sites worldwide.

The Caterer has contacted Coca-Cola, Costa Coffee and Alvarez & Marsal for comment.

AlixPartners declined to comment.