Coca-Cola is in early talks to buy a significant stake in Bengaluru-based Cafe Coffee Day, according to The Economic Times.
The beverage-maker’s move comes almost a year after it acquired British cafe chain Costa Coffee for $5.1 billion from Whitbread.
The deal is being led by the beverage-maker’s head office in Atlanta, the report says.
“It would give Coca-Cola significant scale in the fast-growing café business, compared to soft drinks,” a source told ET.
T Krishnakumar, CEO of Coca Cola India and South West Asia, is in Atlanta for discussions on the transaction, according to a Business Standard report.
Moneycontrol could not independently verify the story.
A spokesperson for Coca-Cola India has told the paper the news is speculative in nature. Café Coffee Day has declined a request for comment by the paper.
The move is seen as a part of Coca-Cola’s strategy to move away from its core carbonated drinks portfolio.
Café Coffee Day, a subsidiary of Coffee Day Enterprises, competes with Starbucks, Barista, Chai Point and Chaayos.
L&T recently bought a roughly 20 percent stake in Mindtree owned by Coffee Day promoter VG Siddhartha and CCD’s two affiliate firms.
Selling the stake in Mindtree helped Siddhartha clear debt of around Rs 2,900 crore.
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