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Which is better, costa or Starbucks, when Costa Coffee goes public independently within two years?

Published: 2024-11-03 Author: World Gafei
Last Updated: 2024/11/03, Professional coffee knowledge exchange more coffee bean information Please follow Coffee Workshop (Wechat official account cafe_style) British hotel and coffee shop operator Whitbread under pressure from shareholders announced yesterday that its second largest coffee chain Costa Coffee in the world will be spun off and listed separately. It is expected to be spun off within 24 months. I believe it has the ability and scale to develop independently. Cost

Professional coffee knowledge exchange more coffee bean information please follow the coffee workshop (Wechat official account cafe_style)

Under pressure from shareholders, British hotel and coffee shop operator Whitbread announced yesterday that Costa Coffee, the world's second-largest coffee chain, will be spun off and is expected to be spun off within 24 months. ...

Whitbread Group, the parent company of Costa, announced last year that Costa would buy the remaining 49 per cent of Yueda Shijia (Shanghai) Restaurant Management Co., Ltd., a joint venture between Costa and Jiangsu Yueda Group, for RMB 310 million. After the acquisition, Costa will wholly own the southern Chinese market.

According to data, Starbucks announced in July 17 that it would buy the remaining 50 per cent of its joint venture with Taiwan Unification Group in eastern China for about US $1.3 billion (HK $10.14 billion) and acquire full ownership of more than 1300 Starbucks stores in Zhejiang, Shanghai and Jiangsu.

Costa is the second largest coffee chain after Starbucks in China, with 2800 stores in China and 420 in Costa. Starbucks plans to have 5000 stores in China by 2021, while Costa expects the number to increase to 700 by 2020-2021.

According to the prospective Industrial Research Institute's "2017-2022 China Cafe Industry Market Prospect and Investment Strategic Planning Analysis report", the number of coffee shops in China is growing rapidly, from about 15898 in 2007 to 31783 in 2012. By the end of 2012, the number of coffee shops in China had reached about 85000, with an average annual compound growth rate of about 28% from 2016 to 2016. Although coffee consumption across China is still in its infancy, it is growing at an alarming rate: annual sales range from 30,000 to 40,000 tons and remain between 10 and 15 per cent a year (global growth is about 2 per cent). Last year, China's coffee consumption market was about 78.5 billion yuan, while coffee shops accounted for 24.2 percent of the market share, or about 19 billion yuan.

Compared with people in Europe, the United States, Japan and South Korea, China's per capita coffee consumption is very low, only 20 cups per person per car. The forward-looking Industrial Research Institute predicts that by 2022, the market size of China's coffee shop industry alone is expected to reach 43.9 billion yuan, and the market in third-tier cities and below is expected to open. According to the London International Coffee Organization, compared with the global average growth rate of 2%, China's coffee consumption is growing at an astonishing rate of 15% a year. It is estimated that by 2025, China will become a 1 trillion yuan giant coffee consumption empire.

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