Coca-Cola Digs Into Coffee With $5.1 Billion Costa Purchase

The transcript discusses Whitbread's sale of its Costa coffee chain to Coca Cola for £4 billion. The deal, which was unexpected and completed quickly, led to a positive market reaction. Shareholder activists may have influenced the transaction's pace. Coca Cola's acquisition of Costa is seen as a strategic move to diversify its product offerings amid backlash against sugary drinks.

What was the initial plan for Costa Coffee before the sale to Coca Cola?

• To close down operations

• To expand into new markets

• To spin off as an independent company

• To merge with another coffee chain

Which shareholder disclosed a stake in Whitbread in December?

• Elliott

• Sachem Head

• BlackRock

• Vanguard

What was the reaction of analysts to the quick sale of Costa Coffee?

• They predicted a drop in share prices

• They were surprised by the quick transaction

• They anticipated a merger with another company

• They expected a higher sale price

Why is Coca Cola interested in acquiring Costa Coffee?

• To enter the fast-food industry

• To diversify its product offerings

• To compete with energy drink brands

• To reduce production costs

What challenge is Coca Cola facing that makes the Costa Coffee acquisition strategic?

• Declining soda sales

• Backlash against sugary drinks

• Increased competition from tea brands

• Rising production costs