Luckin Coffee’s Major Investor Weighs Acquisition of Costa Coffee
Beijing — Qahwa World
The majority stakeholder of Luckin Coffee, Centurium Capital, is reportedly considering a bid to acquire Costa Coffee from The Coca-Cola Company, in what could become one of the most significant international coffee transactions in recent years.
According to sources familiar with the matter, the Beijing-based private equity firm is evaluating whether to proceed with an offer for the British coffee chain. The discussions come as Coca-Cola continues to review its investment in Costa Coffee, which it purchased from Whitbread in 2019 for $4.9 billion.
Coca-Cola Reassesses Its Coffee Strategy
Coca-Cola began exploring potential buyers for Costa in August 2025, signaling a possible retreat from its café business. Speaking to investors, CEO James Quincey admitted that Costa’s financial performance “is not where we wanted it to be,” adding that the company was “reflecting on the right way forward” for the brand.
Reports indicate that Coca-Cola has received fewer bids than anticipated, with Costa’s current valuation estimated at less than $2 billion — less than half of what the beverage giant originally paid.
Centurium Capital’s Expanding Coffee Footprint
Centurium Capital has been a major force behind Luckin Coffee’s resurgence. The Chinese private equity firm first invested in Luckin during its early funding rounds and became instrumental in stabilizing the company following its 2020 accounting scandal. In 2021, Centurium led a $260 million private placement that helped Luckin restructure debt and resolve issues with the U.S. Securities and Exchange Commission (SEC).
By January 2022, Centurium had become Luckin’s controlling shareholder, holding over 50% of the company’s voting rights. Under its direction, Luckin has grown rapidly, operating more than 26,000 stores across China, surpassing Starbucks in store count and establishing itself as the country’s leading coffee brand.
Industry analysts suggest that acquiring Costa could give Centurium a strong international platform, combining Luckin’s digital strength and value-based strategy in Asia with Costa’s established brand presence in Europe and the Middle East.
Costa Coffee’s Global Operations
Founded in London in 1971, Costa Coffee today operates around 4,100 coffee shops across 38 countries and manages nearly 17,000 self-service machines under the Costa Express brand. The company has also expanded into the ready-to-drink (RTD) sector, with products distributed through supermarkets and vending platforms worldwide.
However, under Coca-Cola’s ownership, Costa has struggled to achieve consistent profitability and adapt to evolving market dynamics. Analysts say that its integration within a soft-drink-focused corporation limited the brand’s agility in competing with fast-growing specialty coffee chains.
Other Interested Bidders
Besides Centurium Capital, Bain Capital, investor in Gail’s Bakery and Pizza Express, and TDR Capital, owner of Asda supermarkets, have also shown interest in acquiring Costa, according to Bloomberg.
If Centurium proceeds, the deal would mark a rare case of a Chinese investment group acquiring a major Western coffee brand, highlighting China’s growing influence in the global coffee market and reinforcing the country’s ambition to shape the next chapter of the café industry.
