As Coca-Cola is reportedly exploring a £2bn sale of Costa Coffee (Sky News), questions are being asked about what this means for Britain’s high street and the global coffee market.
Richard Smith, co-founder of Tea and Coffee, says the potential sale highlights a bigger truth: the way people consume coffee has fundamentally changed.
“Costa was once the safe bet for a flat white anywhere in the UK. Now consumers are far more adventurous — they want beans they can trace, latte art worth photographing, and a story to tell their friends. Convenience alone just does not cut it anymore,” he says.
Smith argues convenience isn’t king anymore. “Quick, standardised coffee still sells, but the new generation of coffee drinkers know their single origins from their blends. They want to know whether their beans came from Colombia or Kenya — and they will pay extra for the difference. Coffee has gone from caffeine fix to lifestyle badge.”
The rise of independents and specialists is impacting Costa, he adds. “Chains like Costa are being squeezed between the 99p filter coffee at one end and artisan independents serving hand-poured brews at the other. If your cappuccino tastes like it came out of a machine, customers will happily walk an extra five minutes for something better.”
Consumers prefer local versus global brands, he maintains. “Uniform stores and identical menus made Costa feel reliable, but now it just feels beige. Independents can experiment with funky seasonal specials — pumpkin spice pales next to a barista’s own invention. That sense of local flavour is what chains struggle to copy.”
Consumers want more, Smith suggests. “The modern customer wants the full package: great coffee, fresh food, cosy interiors, and maybe even a playlist that does not sound like a lift. Coffee shops are no longer just pit stops, they are hangouts. Chains that don’t adapt will keep watching customers drift to somewhere that feels more alive.
“Costa’s possible sale is not just about Coca-Cola’s spreadsheets — it’s about a cultural shift. People want coffee that feels personal, fun, and worth talking about. The days when a chain latte was exciting are over. The future belongs to brands that make every cup feel like an experience, not just a transaction.”
