*By Madison Alworth*
Coca-Cola announced Friday it will buy the UK coffee chain Costa for a piping $5.1 billion. The deal is Coke's largest acquisition to date.
According to Wall Street Journal reporter Jennifer Maloney, this was a diversification move, and Coke CEO James Quincey's way to make good on his word.
"He wanted to provide beverages to people at any time of day and any occasion," Maloney said Friday in an interview with Cheddar.
The deal marks Coke's first foray into the hot beverage industry. The timing couldn't be better. With the [soda market] (https://www.businessinsider.com/pepsi-ceo-inda-nooyi-predicted-soda-declines-2018-8) continuing to fall, Coca-Cola is looking to add more options to its portfolio. This move is also just the latest in a bubbling trend of soda brands trying to please calorie-conscious consumers. A little over a week ago, [Pepsi](https://cheddar.com/videos/pepsi-adds-sodastream-to-healthy-drinks-lineup) announced its purchase of seltzer machine maker SodaStream.
Costa has a large footprint abroad with 3,800 cafes in the U.K. and a growing presence in China.
That country has been a target of the coffee industry as consumption of the caffeinated beverage continues to soar. Although Chinese consumers traditionally prefer tea, Chinese millennials are adopting java in droves. According to the International Coffee Organization and the U.S. Department of Agriculture, over the past four years coffee imports to China have grown by 16 percent a year compared to 2 percent in the U.S.
According to Maloney, China is Costa's biggest market outside of the UK. Costa has approximately 450 locations in the country and Coke's CEO is focused on that as a new market.
"He sees China as a great opportunity to expand retail locations," Maloney said.
For full interview [click here](https://cheddar.com/videos/coca-cola-cozies-up-to-costa).
On this episode of Cheddar Reveals, Jen Young, Outdoorsy co-founder and CMO, breaks down the travel industry trend towards RVs and camper vans, and how the evolution of work-from-home culture has caused it to jump; Nick DiBella, Senior Vice President of Operations for Sun Outdoors, discusses why transforming into an outdoor hospitality company was so crucial at this time, the evolution of outdoor travel, and what this means for the future of the travel industry; Cheddar gets a look at Curiosity Stream's 'The Woodstock Bus.'
Nick DiBella, Senior Vice President of Operations for Sun Outdoors, joins Cheddar Reveals to discuss why transforming into an outdoor hospitality company was so crucial at this time, the evolution of outdoor travel, and what this means for the future of the travel industry.
Jen Young, Outdoorsy co-founder and CMO, joins Cheddar Reveals to discuss the travel industry trend towards RVs and camper vans, and how the evolution of work-from-home culture has caused it to jump.
'West Side Story' is off to a slow start, the film debuted with $10.5 million. Thom Geier, executive editor at the Wrap, joins Cheddar News to discuss the movies people should be looking forward to and the overall state of the industry.
Cheddar is looking back at the 12 biggest buzzwords of the year leading up to Christmas. Today's word of the day, 'Yolo Trade.' Yolo Trade: (noun) derived from the acronym 'You Only Live Once.' Describes a trade where someone goes all in on a stock.
Matt Schulz, Chief Credit Analyst at LendingTree, joins Cheddar to break down the different types of credit card rewards that are out there, which states utilize rewards more than others, and how to get the most out of your credit card rewards.
