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Costa Coffee

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British coffeehouse chain offering espresso-based drinks, food, packaged coffee and automated Costa Express services.

Last updated August 21, 2026

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Overview

Costa Coffee is a British coffeehouse chain established in London in 1971 by Italian-born brothers Bruno and Sergio Costa. The business began as a wholesale coffee roaster, supplying caterers and specialist Italian coffee shops, before expanding into branded retail cafés. Its first shop opened on Vauxhall Bridge Road in London in 1981. Costa developed a broad operating model that combines company-operated and franchised coffee shops with Costa Express self-service machines, packaged coffee, ready-to-drink products and partnerships with other businesses. The brand became part of Whitbread in 1995, when the chain had 41 UK stores. Under Whitbread, Costa expanded rapidly in the United Kingdom and internationally. It opened its 1,000th store in Cardiff in 2009 and acquired the Polish Coffeeheaven chain later that year, adding stores in Central and Eastern Europe. Costa also expanded beyond conventional cafés through Costa Express, following Whitbread's acquisition of Coffee Nation. The automated format was targeted at petrol stations, supermarkets, hospitals, universities, transport locations and other high-footfall sites. Costa's retail offer centers on espresso-based beverages such as lattes, cappuccinos and flat whites, alongside hot chocolate, tea, iced drinks, sandwiches, cakes, pastries and snacks. The company has also developed seasonal and co-branded drinks, including limited-edition beverages using Nestlé confectionery brands. Its coffee supply chain includes a major roasting facility in Basildon, Essex. The roastery moved there from Lambeth in 2017 after a reported £38 million investment, increasing stated annual roasting capacity from 11,000 to 45,000 tonnes. In 2018, activist shareholders pressured Whitbread to separate Costa from its hotel and restaurant businesses. Whitbread announced a planned demerger, but instead sold Costa to The Coca-Cola Company on 3 January 2019 for a reported $4.9 billion. The acquisition added a large international café and coffee platform to Coca-Cola's beverage portfolio, while Costa's canned and ready-to-drink coffee products gave the brand a route into retail distribution beyond cafés. Costa operates in the United Kingdom and numerous overseas markets. Reference material describes activity in 37 countries outside the UK and, at different points, more than 4,000 stores and other outlets; published totals vary according to whether cafés, Costa Express machines, franchised units and other points of sale are counted. The brand's international development includes a first overseas shop in the United Arab Emirates in 1999 and a substantial presence in China and the Middle East. In 2020, Costa introduced canned and iced coffee products and continued developing its packaged and ready-to-drink business. The company has also been associated with the Costa Book Awards, formerly the Whitbread Book Awards, which it sponsored from 2006 until the awards were discontinued in 2022. Costa stores in the United Kingdom were temporarily closed during the first COVID-19 restrictions in March 2020, with selected locations later reopening for takeaway and drive-through service. The brand has faced scrutiny over franchise-worker pay practices, animal-welfare allegations involving dairy suppliers and food-allergy procedures. Costa has stated that it investigated supplier and franchise-related concerns, while an inquest into the death of a teenager after a hot chocolate found shortcomings in allergy communication and staff training at the time. Costa remains a Coca-Cola-owned coffee brand with a multi-channel presence spanning cafés, automated machines and packaged beverages.

History

Costa Coffee originated in London in 1971, when brothers Bruno and Sergio Costa established a coffee-roasting operation serving caterers and specialist Italian coffee shops. The Costa family had moved from Parma, Italy, to England during the 1950s. The company's initial identity was therefore built around wholesale roasting and Italian coffee culture rather than a conventional retail chain. In 1981, Costa opened its first coffee shop on Vauxhall Bridge Road, marking the transition toward a branded café business. The retail chain expanded through the 1980s and early 1990s. By 1995, Costa had 41 UK stores and was acquired by Whitbread, then a major British hotel and coffee-shop operator. As a wholly owned Whitbread subsidiary, Costa benefited from access to a larger hospitality platform and grew into one of the leading UK coffee chains. Its coffee was also sold through Whitbread's Brewers Fayre and Beefeater businesses for a period. Expansion accelerated in the 2000s. Costa opened its 1,000th store in Cardiff in 2009 and entered Central and Eastern Europe through Whitbread's £36 million acquisition of the Polish Coffeeheaven chain, adding 79 outlets. The company also developed an automated-service channel. After Whitbread acquired Coffee Nation for £59.5 million, its machines were rebranded Costa Express. This format extended Costa into petrol stations, supermarkets, hospitals, universities and transport interchanges, reducing the brand's dependence on traditional cafés. Costa expanded outside the United Kingdom, with its first overseas store opening in the United Arab Emirates in 1999. Later international operations included markets across Europe, the Middle East, Asia and Africa. China became a significant overseas market, while Costa Express machines were placed in locations such as Shell stations in Denmark and SPAR petrol-station stores in the UK. At various reporting dates, published outlet totals ranged from several thousand cafés to more than 4,000 locations when broader formats were included. The company's production infrastructure was strengthened in 2017, when its coffee roastery moved from Lambeth to Basildon, Essex. The reported £38 million investment increased annual roasting capacity from approximately 11,000 to 45,000 tonnes. Costa subsequently broadened its consumer packaged-goods activity, including canned coffee and iced coffee introduced in 2020, allowing Coca-Cola to distribute Costa-branded products through channels beyond cafés. Whitbread came under pressure in 2018 from activist investors who argued that Costa's value was obscured within the wider group. Whitbread announced plans to demerge the coffee chain, but Coca-Cola instead agreed to acquire it. The transaction completed on 3 January 2019 at a reported value of $4.9 billion. Costa became part of Coca-Cola's global coffee portfolio while retaining its own retail identity and operating formats. The COVID-19 pandemic temporarily interrupted UK retail operations. In March 2020, Costa closed all UK coffee shops under national restrictions; selected branches later resumed takeaway and drive-through services. The brand continued to operate through cafés, Costa Express machines and packaged beverages. It also maintained a promotional and cultural role through sponsorship of the Costa Book Awards, formerly the Whitbread Book Awards, from 2006 until the awards ended in 2022. Recent developments have included leadership change, sustainability commitments and scrutiny of operating practices. Jill McDonald left the chief executive role in 2022, and Philippe Schaillee succeeded her in April 2023. Costa committed to sourcing cage-free eggs globally by 2025 and reported substantial progress, with full compliance stated for the UK and United States. At the same time, investigations into dairy-farm welfare, reports concerning franchise-worker deductions and an inquest into a fatal allergy incident generated reputational and operational challenges. In 2025, reports stated that Coca-Cola was exploring a possible sale of Costa because of cost and competitive pressures, although the supplied material does not establish that a sale occurred.

  • 2023

    Philippe Schaillee becomes chief executive

    [1]

    Philippe Schaillee succeeds Jill McDonald as chief executive.

  • 2022

    Costa Book Awards discontinued

    [1]

    The Costa Book Awards, sponsored by the brand since 2006, are discontinued.

  • 2020

    Canned and iced coffee expansion

    [1]

    Costa introduces canned coffee and iced coffee products while its UK cafés temporarily close during COVID-19 restrictions.

  • 2019

    Coca-Cola completes acquisition

    [1]

    The Coca-Cola Company purchases Costa from Whitbread in a reported $4.9 billion transaction.

  • 2017

    Basildon roastery opens

    [1]

    Costa moves its roasting operation from Lambeth to Basildon, Essex, with a reported investment of £38 million.

  • 2009

    1,000th store and Coffeeheaven acquisition

    [1]

    Costa opens its 1,000th store in Cardiff and agrees to acquire Poland-based Coffeeheaven, adding 79 Central and Eastern European stores.

  • 1999

    First overseas store opens

    [1]

    Costa opens its first store outside the UK in the United Arab Emirates.

  • 1995

    Whitbread acquires Costa

    [1]

    Whitbread acquires the 41-store Costa chain and makes it a wholly owned subsidiary.

  • 1981

    First Costa coffee shop opens

    [1]

    The company opens its first branded retail shop on Vauxhall Bridge Road in London.

  • 1971

    Costa is founded as a wholesale roaster

    [1]

    Bruno and Sergio Costa establish a London coffee-roasting business supplying caterers and specialist Italian coffee shops.

Products and positioning

A mainstream-to-premium British coffeehouse brand emphasizing Italian-style espresso beverages, handcrafted preparation, roasted coffee and convenient availability through cafés, self-service machines and packaged products.

  • Coffee

    Espresso-based drinks

    Costa's core café range consists of espresso-based drinks including lattes, cappuccinos and flat whites. These beverages express the brand's Italian-influenced coffee identity and are prepared across conventional stores and, in adapted form, through Costa Express machines.

  • Beverages

    Hot and cold beverages

    In addition to coffee, Costa sells hot chocolate, tea, iced coffee and other cold drinks. Seasonal recipes and limited editions broaden the beverage menu, including a 2020 collaboration using Quality Street, After Eight and Terry's confectionery brands.

  • Food

    Food-to-go

    Costa cafés offer food intended to accompany drinks or serve as quick meals, including sandwiches, cakes, pastries and snacks. The range supports the chain's coffeehouse positioning while increasing the breadth of its daypart offer.

  • Automated coffee service

    Costa Express

    Costa Express is the brand's self-service machine format, created after Whitbread acquired Coffee Nation and rebranded its machines. Units operate in locations such as petrol stations, supermarkets, hospitals, universities and transport sites, making Costa coffee available without a full café.

  • Packaged beverages · 2020

    Packaged and canned coffee

    Costa has extended beyond retail cafés through canned coffee, iced coffee and other packaged formats. These products allow the brand to use Coca-Cola's broader beverage distribution capabilities and reach consumers through non-café channels.

Controversies

  • 2023

    Further dairy-farm welfare allegations

    Viva! reported alleged rough handling and poor welfare at a farm supplying Costa and other customers. Costa said it investigated the supplier and found compliance with Red Tractor welfare standards.

  • 2023

    Fatal allergy incident and inquest findings

    A 13-year-old girl died after consuming a hot chocolate from a Costa shop. The inquest found a failure of communication about the order and dairy milk, and concluded that allergy training provided to staff at the time was inadequate.

  • 2022

    Alleged abuse of dairy cows supplying Costa

    A BBC Panorama investigation reported alleged abuse and inadequate care at a Welsh dairy farm supplying Costa. The allegations included physical violence, tail twisting and failure to provide appropriate care.

  • 2019

    Allegations concerning franchise-worker deductions

    Media reports alleged that workers at some franchised Costa stores faced deductions involving wages, holiday pay, sick pay, tips and work outside contracted hours. Costa said franchisees managed those contracts and announced an independent audit.

Read more

Marketing campaigns

  • 2025Cage-free egg commitment

    Global

    Costa committed to sourcing 100% cage-free eggs globally by 2025. The company reported that about 75% of eggs used globally were cage-free, with full compliance stated in the UK and United States.

    Outcome. The commitment remained a sustainability and animal-welfare target, with an animal-welfare council later campaigning in support of it.

  • 2023Pride Month Costa Express mural

    United Kingdom

    A Costa Express van carried artwork depicting a trans man with top-surgery scars as part of a Pride Month mural. Costa said the design celebrated inclusivity.

    Outcome. The artwork generated public criticism as well as support and became a notable brand-inclusion controversy.

  • 2020Festive confectionery drink collaboration

    United Kingdom

    Costa collaborated with Nestlé confectionery brands Quality Street, After Eight and Terry's on limited-edition Christmas drinks.

    Outcome. Seasonal limited-edition beverages expanded the brand's promotional menu.

  • 2006Costa Book Awards sponsorship

    United Kingdom

    Costa became sponsor of the Whitbread Book Awards, which were renamed the Costa Book Awards. The sponsorship linked the coffee brand with British literary culture and continued until the awards were discontinued in 2022.

    Outcome. The awards operated under the Costa name for 16 years before ending.

Brand decisions

  • 2020

    Introduce canned and iced coffeeProduct launch

    Background

    Costa sought to extend its brand beyond physical coffee shops.

    Action taken

    The company introduced canned coffee and iced coffee products.

    Aftermath

    The launches broadened Costa's packaged and ready-to-drink beverage presence.

  • 2019

    Sell Costa to The Coca-Cola CompanyM&A

    Background

    Whitbread pursued a separation of Costa while Coca-Cola sought to strengthen its global coffee portfolio.

    Action taken

    Coca-Cola completed the purchase of Costa Coffee from Whitbread on 3 January 2019.

    Aftermath

    Costa became a Coca-Cola-owned coffee platform spanning cafés, Costa Express and packaged products.

    Acquisition value. $4.9 billion (January 2019)

  • 2018

    Plan a full demerger from WhitbreadStrategy

    Background

    Activist shareholders argued that Costa and Whitbread's other businesses could have greater value as separate companies.

    Action taken

    Whitbread announced an intention to fully separate Costa within two years.

    Aftermath

    The planned demerger was superseded by Coca-Cola's acquisition of Costa.

  • 2017

    Relocate and expand coffee roastingStrategy

    Background

    Costa required greater roasting capacity to support its expanding store and machine network.

    Action taken

    The company moved its roastery from Lambeth to Basildon, Essex, with a reported £38 million investment.

    Aftermath

    Reported annual roasting capacity increased from 11,000 to 45,000 tonnes.

    Roastery investment. £38 million (2017)

  • 2009

    Acquire CoffeeheavenM&A

    Background

    Costa sought to increase its Central and Eastern European presence.

    Action taken

    Whitbread agreed to acquire the Polish Coffeeheaven chain for £36 million, adding 79 stores.

    Aftermath

    The transaction expanded Costa's overseas café network.

    Acquisition value. £36 million (December 2009)

Recent events

  • Reported

    Costa Coffee opens first Cineworld cinema store[3]

    Costa Coffee opened its first store in a Cineworld cinema at Cineworld Ashton-under-Lyne in the UK. The opening is the first of a planned rollout of Costa Coffee stores in up to 26 Cineworld cinema locations.

  • Unconfirmed

    Reported

    Costa Coffee launches mobile van service[4]

    Costa Coffee launched its first mobile van service, with the first vehicle opening in Oxford as part of a trial that is also set to include two more vans.

  • Reported

    Costa expands Deliveroo partnership[5]

    Costa Coffee confirmed an expanded partnership with Deliveroo, allowing users of the Deliveroo app in England, Scotland and Wales to order Costa coffee and hot and cold food items.

  • Reported

    Costa Coffee Ruabon store reopens[6]

    Costa Coffee announced that its Ruabon store would start serving customers on May 28, 2020.

  • Reported

    Costa Coffee announces Jill McDonald as CEO[7]

    Costa Coffee announced that Jill McDonald would become its CEO on December 2. Dominic Paul was due to step down on November 30 and remain with Costa as a special advisor through February 2020 to support the transition.

  • Reported

    Costa expands Too Good To Go partnership to 100 sites[8]

    Costa Coffee expanded its partnership with the Too Good To Go app. The article reported that 100 Costa Coffee sites would be listed on the app following a trial at nine stores.

  • Unconfirmed

    Costa Coffee’s Sunway Pyramid outlet wins design award[9]

    Costa Coffee’s Sunway Pyramid outlet won the “Overall Best-in-class Design” award at the Costa Coffee Annual Global Store Design Forum in London.

Read more

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