Coca-Cola has scrapped its Costa Coffee sale process after receiving unattractive bids from private equity firms. The company was seeking £2 billion, half of what it originally paid for the chain in 2018. Buyers like TDR Capital and Bain Capital showed interest but couldn’t meet valuation expectations.

The decision arrives as Costa Coffee faces ongoing struggles with weak consumer spending and fierce competition in the UK coffee market. The brand, which operates over 2,700 outlets, was part of Coca-Cola’s broader strategy to focus on core beverage operations under incoming CEO Henrique Braun.

Despite walking away from the sale, Coca-Cola hasn’t ruled out offloading Costa Coffee in the future. A leadership transition and evolving retail dynamics in Europe could influence timing. The outcome underscores challenges in exiting non-core assets during uncertain economic climates.

Strategically, this move may signal a shift toward operational revitalization for Costa rather than an immediate exit. Analysts expect the company to explore restructuring or franchising to improve performance amid shifting coffee consumption trends.