Coca-Cola is Buying Costa Coffee for $5 Billion- Nik Puri



Summary: Coca-Cola recently announced the purchase of coffee chain, Costa Coffee for $5.1 billion. In a interview with James Quincy, the CEO of Coca-Cola, he said "We try to be more than a soda company." By purchasing a coffee chain, James Quincy and Coca-Cola has gotten into direct competition with Starbucks and several other coffee brands around the world. Coca-Cola wanted to expand its market outside of making soda and accomplish so much more than being a soft drink company. In fact, James Quincy said in a brief statement,"Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand and Costa gives us access to this market with a strong coffee platform." After Coca-Cola gets approval from its shareholders and regulators. the buyout is expected to be completed in the middle of 2019. One of Coca-Cola's rivals Pepsi, has gotten into the competition by purchasing Israeli DIY seltzer company Sodastream for $3.2 billion. Competition is heating up, but whatever happens, many soda companies are out there to prove they can be more than just a soda company.

https://money.cnn.com/2018/08/31/investing/coca-cola-company-costa/index.html

Analysis: This article was published on August 31, 2018, and was updated at 6:52 AM ET. The fact that the article was made recently implies that the information is current and accurate. On August 28, 2017, Amazon bought Whole Foods for nearly $14 billion. By purchasing Whole Foods, Amazon proved that they want to take over the grocery store market and compete with companies such as Walmart, Kroger, and Target. Whole Foods has a chain that includes over 460 stores in the U.S, Canada, and Great Britain. Amazon has a long running rivalry with Walmart and the acquisition of Whole Foods will give them an advantage over Walmart. This relates to Coca-Cola purchasing Costa Coffee, because like Amazon, Coca-Cola wanted to expand its brand in other areas besides what their primarily known for.  I believe that Coca-Cola is successfully making their company more popular by expanding their business in other fields to gain more customers and profit. This article was targeted towards Coca-Cola's rival companies and more specifically, the people of the world, because they want to advertise what they are doing and to take interest in their products. This article is also significant because it shows that the world of marketing is evolving and that us consumers should take advantage of that.