Coke in uncharted territory with Costa, but it has a drink problem in India

The global acquisition may make sense but here the deal may have many challenges

It’s no rocket science to understand why Coca-Cola Co paid a staggering $5.1 billion last week to buy British coffee chain Costa, its biggest acquisition of a brand in history. With increasingly health-conscious consumers moving away from sugary beverages, Coke is betting big on coffee as one of the alternatives.

With over 3,800 Costa outlets worldwide (Coke does not have an F&B retail chain) under its belt, it will be up against Starbucks (with over 27,000 outlets), the world's largest coffee retail player that has just signed a mega-deal with Nestle, to sell its ready-to-drink beverages in retail and grocery