Hamad Town buying coke

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Hamad Town buying coke

In this file photo taken on November 17, a mug of coffee is pictured inside a branch of a Costa coffee shop in London. It's not surprising, nor is it unreasonable, that Coke wants a piece of the coffee market. The company must diversify away from sugary beverages that consumers are increasingly shunning. And coffee is a rare safe haven in the food industry, a category that looks poised to continue to grow as consumers become more health-conscious. In buying Costa, Coke gets a supply chain, a roastery and a powerful in some global markets brand name in the coffee category. Costa has some tough challenges ahead. The chain has big ambitions in China, but Starbucks has demonstrated what a bumpy ride that can be. Starbucks saw a decline in comparable sales in that important growth market in the latest quarter as it dealt with heavy pressure from new competitors offering delivery and promotions. Even in the U. Some of its cafes in the U. Oh, and let's not forget that restaurant chains generally are in the early stages of a seismic shift toward mobile ordering and digital-enabled delivery. Those problems just became Coke's problems, and it's not clear the company is well-equipped to deal with them. What's more, this is hardly a small or cheap way for Coke to make a bet on coffee. That transaction also entailed significant manufacturing and distribution infrastructure and Coke has only recently concluded a multi-year effort to re-franchise the bottling operations. Costa has express vending machines in places like movie theaters. But it also has regular old coffee shops, only a portion of which are franchised, making this as much of a retail and real estate wager as a coffee bet. Bear in mind that Keurig and Starbucks have stronger name recognition than Costa and more attractive growth opportunities. It's possible Coke will ultimately make Costa a valuable pillar of a transformed business that relies less on soda. But it just seems to us that there may be a better way to get a cup of coffee than buying the whole coffee shop. Follow us news Copy. Coca-Cola Co. Travel 'Not viable': Barcelona turns against surging tourism. Travel can slow the aging process, new study says. Imperilled Mali monument gets new lease of life. Hamad International Airport serves 4. Fashion Kering names new head at Gucci to revive sales. British politics and fashion collide at London Fashion Week. Italy watchdog probes Armani, Dior over supplier labour issues. Trending News. Qatari professors shine at global horizon of science and research. Qatar Foundation and Seashore Group launch training workshops for coaches. Latest Updates. Amir exchanges decorations with President of Italy. Amir attends official dinner banquet held by Italian President. Death toll from Israeli aggression on Lebanon surges to 2, Neymar returns for Al Hilal in Al Ain thriller. Sustainial LLC organises event to celebrate Moroccan culture.