Coca-Cola is betting coffee shops will bring it closer to total beverage domination.
Coke has agreed to acquire Costa Coffee.
That total beverage strategy isn’t just about individual consumers, said Duane Stanford, executive editor of the trade publication Beverage Digest. It’s particularly important for Coke’s food service customers, including movie theaters and restaurants.
If Coke can’t offer them a good coffee option, it’s “a setback” for the company, Stanford said.
Quincey noted that Coca-Cola (KO) isn’t planning on opening many new Costa locations in the United States, where it would have to compete with Starbucks. In America, Coke will market Costa’s other products instead.
Costa has nearly 4,000 stores across 32 countries, and the beverage company is planning on expanding the number of Costa stores in Europe, the Middle East, Asia and Africa.
More retail stores could help people develop a taste for coffee in those regions, Quincey said. And once coffee becomes part of people’s routine, they may be more inclined to buy Costa’s beans and iced coffees, Stanford noted.