Costa Coffeehouse chain are owned by Coca-Cola group. Acquisition and Integration should yield benefits and reduce inefficiency of firms' operations. Discuss this statement and analyze the benefits which may be enjoyed byCosta through its Acquisition by a strong well-known brand 'Coca Cola'.

Taking into consideration that:

Coca-Cola and CostaCoffee are forging ahead with global expansion. The three billionplus cups of coffee consumed globally every day represent the last piece of the puzzle in

Coca-Cola's quest to become a 'total beverage' company. With the International Coffee Organisation (ICO) pegging annual worldwide coffee consumption at around 10 million tons and the global coffee bean market estimated to be worth over $100bn, it is easy to see why in 2018 Coca-Cola made its landmark 3.9bn ($4.8bn) acquisition of Europe's largest coffee chain, CostaCoffee.

It's a partnership that holds the potential to supercharge growth for both firms across caf, vending and retail segments in international coffee markets that could otherwise prove difficult for each firm to navigate in isolation. Therefore, Coca-Cola has been very respectful of Costa's brand and its heritage. Costa's business model means that they are connected to Coca-Cola, but not integrated within it. That's important because Costacan benefit from Coca- Cola's support, while continuing to operate as the CostaCoffee brand that customers know and love.Coca-Cola's purchase of CostaCoffee forms part of a global trend of coffee market consolidation blurring the lines between hot beverages, soft drinks, cafs and retail. As coffee investments become increasingly lucrative, large conglomerates, such as Nestl and JAB Holdings, are vying for supremacy across burgeoning growth categories, such as premium coffee and ready-to-drink (RTD) products.

"Coffee is a big business with many formats. It's also a very fragmented business. No single company in the world has a strong foothold across all parts of coffee. This presents a huge opportunity for Coca-Cola," says Global Ventures Group President Jennifer Mann (Nov 2019).