Ex-McDonald's UK Chief Jill McDonald to become the new CEO of Costa Coffee
Ex-McDonald's UK Chief Jill McDonald to become the new CEO of Costa Coffee

Costa Coffee, a unit of Coca-Cola Co, has announced that Jill McDonald, former McDonald's UK Chief Executive Officer, will become its new CEO on December 2.

Jill McDonald will be replacing Dominic Paul, who is stepping down after over three years at the helm. He has led the coffee chain through a strong growth phase, along with the sale of Costa to The Coca-Cola Company.

Jennifer Mann, President of Global Ventures for The Coca-Cola Company, parent of Costa, said, “Dominic led a significant reshaping of Costa’s international footprint, the expansion of the brand across multiple new platforms and a wide-ranging reset of the core UK business strategy.”

McDonald will report to Jennifer Mann, President of global ventures for Coca-Cola.

Mann stated, “I am excited to welcome Jill to the Costa family. Her track record, depth of international experience and excitement about joining our business makes her an ideal leader to build on the great work of Dominic and the rest of the Costa team.”

McDonald added, “I have long been a fan of Costa and have watched the company grow in the UK and far beyond. I look forward to joining the Costa leadership team and building on the great foundation and growth potential in the business.”

Also Read: Coffee is More than a Trend Now

Growth Rate of the Coffee Industry

Healthy food & beverages is now a burgeoning billion-dollar industry. Despite the fast growth of bottled juices and aerated drinks, consumption of tea and coffee is going up in India, with coffee consumption being up by 6% in the last few years.

Today coffee is much popular than ever. Currently, the coffee chain market in India is valued at Rs 2750 crore and is anticipated to reach Rs 4540 crore by 2023.

Product innovation and better marketing strategy have helped coffee demand to mushroom all across the nation.

Higher demand for Coffee

Around three billions cups of coffee are being consumed every day. This number keeps on increasing with the various brands coming in to cater to the demands. People are now aware of the various notes of coffee, some prefer black, some cappuccino or some might like to have a latte. People are now also ready to pay more for a brand that grows and sells coffee sustainably.

Also Read: More Than Just Refreshing, Coffee Is Now About Experience and Sustainability As Well

Franchising Opportunity

The franchising model is certainly an easy and fail-proof way of venturing into the business world, especially in the cafe market. Consumers tend to choose an established name over a new start-up. Moreover, franchising has its whole host of benefits like low initial cost, low working capital, strong cash flow, quick break-even, large consumer base and much more.

Not just in the tier-I regions, but there is an abundance of coffee retail franchises in tier-II and III regions also. This suggests that coffee franchises are lucrative opportunities for entrepreneurs in this business.

 
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Devyani International Eyes Biryani Market with Major Acquisition Move
Devyani International Eyes Biryani Market with Major Acquisition Move
 

In a move that signals deeper penetration into India’s fast-growing biryani and kebab delivery market, Devyani International Ltd (DIL), the franchisee behind quick service restaurant (QSR) chains like KFC, Pizza Hut, and Costa Coffee, has announced plans to acquire a majority stake in Sky Gate Hospitality—operator of the homegrown restaurant chain 'Biryani by Kilo'.

According to a regulatory filing, the acquisition will give DIL control over Sky Gate’s existing portfolio, including 'Biryani by Kilo' and several other smaller brands and cloud kitchen formats. The acquisition price and number of shares involved have not been disclosed yet.

"We wish to inform you that a meeting of the Board of Directors of the Company is scheduled on Thursday, April 24, 2025 inter-alia, to consider and approve the definitive agreements and issuance of equity shares of the company on a preferential basis to discharge the consideration payable for acquisition of controlling equity stake in Sky Gate Hospitality Private Limited, operating restaurants under the brand 'Biryani by Kilo' and other brands."

Established in 2015,' Biryani by Kilo' currently operates over 70 dine-in outlets across multiple cities in India. The brand is known for its delivery-focused model and product consistency in the biryani and kebab segment.

DIL, promoted by the Jaipuria family, continues to scale its presence in the QSR space and holds a strong franchise portfolio. It is the largest franchisee in India for Yum Brands, the global parent of KFC and Pizza Hut. The company is also the exclusive India franchisee for Costa Coffee, a brand owned by Coca-Cola. Additionally, it owns and operates Vaango, its proprietary South Indian vegetarian food brand.

As of December 31, 2024, DIL’s footprint includes over 900 KFC outlets and more than 580 Pizza Hut stores spread across India, Nepal, and Nigeria. Costa Coffee operates with over 190 cafes in India under DIL’s management, alongside more than 70 Vaango locations.

This acquisition reflects DIL’s continued strategy to diversify and deepen its offerings in the organized food service sector, particularly within high-growth, delivery-oriented categories like biryani.

 

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Costa Coffee and Chef Shivesh Bhatia Join Forces to bring Diwali Inspired Menu
Costa Coffee and Chef Shivesh Bhatia Join Forces to bring Diwali Inspired Menu
 

Costa Coffee, the coffee brand under Coca-Cola has announced its annual Diwali campaign, #CostaWaliDiwali, in partnership with the baker and content creator, Shivesh Bhatia.

Their combined effort introduces a Diwali-themed menu for coffee that blends with the Diwali traditions with Costa Coffee's contemporary and inventive approach. 

Costa Coffee has introduced the Blisstachio Rose beverage series like the Blisstachio Rose Hot Latte, the invigorating Blisstachio Rose Iced Cappuccino and the tempting Blisstachio Rose Boba Frappe that draws inspiration from classic Indian sweets.

“At Costa Coffee, we are dedicated to embracing and celebrating cultural richness through our coffee. This Diwali, our collaboration with Shivesh Bhatia for the launch of Blisstachio Rose collection showcases our commitment to crafting unique experiences for our consumers. The skilful fusion of tradition with contemporary creativity builds a symphony of flavour that celebrates the richness of Diwali in every cup.” said Vinay Nair, General Manager, India & Emerging International, Costa Coffee at the Coca-Cola Company.

Costa Coffee has partnered with the highly skilled graphic design student, Shamon Sachdeva, hailing from Anant National University, to design stunning Diwali-themed coffee cups.

Shamon's talent weaves compelling visual stories, turning traditional diya flames into coffee beans, paying homage to Costa Coffee.

I am thrilled to be joining hands with Costa Coffee for an exciting festive range of beverages. Creating this range using flavours that hold a special place in my heart that I have enjoyed growing up has truly been a fulfilling experience. From brainstorming ideas to conducting trials and finally witnessing the Blisstachio Range launch, it has been an absolute joyride to spread festive cheer among people with the best of drinks.” said Shivesh Bhatia.

Costa Coffee has unveiled its 150th store in New Delhi. As part of its continuous growth strategy, Costa Coffee aims to establish additional establishments in the top 8-10 major Indian cities, to expand and enhance its footprint throughout the nation.

 

 

 

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Costa Coffee Opens 150th Store in New Delhi
Costa Coffee Opens 150th Store in New Delhi
 

Costa Coffee, coffee brand under Coca-Cola in India's commercial beverage sector has declared the inauguration of its 150th store in Rajouri Garden, New Delhi.

In 2005, Costa Coffee marked its entry into the Indian market by inaugurating its very first café in Connaught Place, New Delhi, marking the initiation of its Indian journey.

In the past year, in collaboration with Devyani International, Costa Coffee embarked on a substantial expansion initiative in India, introducing around 60 new stores.

Brand’s ongoing objective is to establish new outlets in the top 8-10 cities in India, with a particular focus on specialized locations such as airports, highways, and healthcare facilities.

India's coffee sector is undergoing a fascinating transformation, with a growing emphasis on specialty coffee and premium offerings, particularly driven by urban millennials who have transformed coffee shops into vibrant social spaces.

This shift is particularly noteworthy in a nation traditionally associated with tea culture.

The 150th Costa Coffee outlet exemplifies Costa Coffee's dedication to offering artisanal coffee crafted from locally sourced ingredients. 

“India is a key market for us globally and we are proud to commemorate the opening of our 150th store. This milestone truly highlights the overwhelming love and support we have received from coffee enthusiasts across India. Our aim is to extend our presence to every corner of the nation, and we remain committed to achieving this vision through our continuous expansion efforts, ensuring remarkable coffee experiences for all." said, Vinay Nair, General Manager, India & Emerging Markets, Costa Coffee.

Costa Coffee offers a diverse menu featuring a selection of distinctive coffee creations, including popular choices like the Flat White, Classic Corto, Café Caramela, and more, all prepared using locally-sourced coffee beans.

 

 

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Devyani International's Q3 net profit grows to Rs 71.03 crore, up 7.6%
Devyani International's Q3 net profit grows to Rs 71.03 crore, up 7.6%
 

Quick service restaurant operator Devyani International Ltd on Thursday reported a 7.63 per cent rise in consolidated net profit to Rs 71.03 crore for the third quarter ended December 2022.

Devyani International, the biggest franchisee of Yum Brands in India that operates brands such as Pizza Hut and KFC, had a net profit of Rs 65.99 crore in the same period the previous year.

Devyani International Ltd (DIL) reported a 26.61% increase in their revenue from operations during the third quarter of the current fiscal year, reaching Rs 790.59 crore compared to the previous year's figure of Rs 624.42 crore, according to a regulatory filing.

According to DIL's earnings statement, the rise in revenue was due to a sustained strong increase in the number of store additions and growth in volume, which helped to drive the performance.

The total expenses of DIL during the latest quarter saw a year-on-year increase of 29.02%, reaching Rs 725.10 crore.

According to the company, they maintained their momentum in adding new stores by opening 81 net new stores in the third quarter of the fiscal year 2023, bringing their total number of stores to 1,177 as of December 31st, 2022.

As of December 2022, the company was operating 103 stores of Costa Coffee.

In addition to its operations in India, DIL also manages 36 KFC stores in Nigeria and a combined total of 21 KFC and Pizza Hut stores in Nepal.

“Innovation continues to play a crucial role in their growth strategy for all the brands within their portfolio” said, Ravi Jaipuria, Chairman of DIL.

He also stated that the company remains optimistic about their brands and the Indian market, despite a temporary slowdown in consumer demand. He believes that once inflation stabilizes, consumer spending will pick up, which will positively impact their businesses.

In the meantime, Jaipuria stated that the company will stay focused on improving their processes, ensuring product quality, and refining their execution abilities.

The shares of DIL ended the day at Rs 159.25 per share on BSE, which was a 0.25% increase from the previous close.

 

 

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Devyani International extends partnership with Costa Coffee for another 5 years
Devyani International extends partnership with Costa Coffee for another 5 years
 

Devyani International Limited (DIL), the largest franchisee of Yum Brands in India and among the largest operators of chain quick service restaurants, today announced the extension of partnership with Costa Coffee.

 

DIL has entered into a revised development agreement for its existing Costa business on August 14, 2021, pursuant to which DIL has been granted development rights for PAN India in a phased manner.

 

Also Read: Devyani International IPO opens tomorrow: 7 reasons why you should take a slice of it

 

This agreement has initially granted development rights for a period of 5 years and extendable from time to time subject to meeting of development and contractual obligations.

 

Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee is present in 41 countries around the world, with over 2,800+ coffee shops in the UK & Ireland and 1,100+ globally.

DIL’s first Costa Coffee store in India opened in 2005 at Delhi and as on June 30, 2021 operated 44 Costa Coffee stores located in eight states and one union territory, across 17 cities in India.

Must Read: देवयानी इंटरनेशनल ने कोस्टा कॉफी के साथ और 5 साल के लिए पार्टनरशिप को बढ़ाया

The Company currently operates two formats of Costa Coffee stores, namely full retail stores at high-street locations and malls, and branded kiosks at airports, hospitals and food courts at highways.

 

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Devyani International collects Rs 825 cr from anchor investors, IPO fully subscribed within 3 hrs
Devyani International collects Rs 825 cr from anchor investors, IPO fully subscribed within 3 hrs
 

KFC, Pizza Hut and Costa Coffee franchisee Devyani International, on Wednesday announced that it fetched Rs 825 crore from anchor investors.

It has decided to allocate 9.16 crore equity shares to 41 anchor investors at Rs 90 a piece, aggregating to Rs 825 crore, according to a statement.

A total of 28 foreign portfolio investors (FPIs) participated in the anchor book on Tuesday. Some of them were Abu Dhabi Investment Authority, Fidelity, Goldman Sachs, Monetary Authority of Singapore, Abu Dhabi Investment Council, Government of Singapore, Jupiter Asset Management, Nomura and Macquarie.

In addition, 13 domestic investors including 6 mutual funds, 6 life insurance companies and one general insurance company participated in the anchor book too.

Must Read: Devyani International IPO opens tomorrow: 7 reasons why you should take a slice of it

These included ICICI Prudential Mutual Fund (MF), Mirae Asset MF, Nippon Life MF, Tata Mutual Fund MF, Sundaram Mutual Fund, Aditya Birla Sunlife, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance, Bajaj Allianz, Max Life Insurance Co and SBI General Insurance.

The initial public offering (IPO) consists of fresh issue of equity shares worth Rs 440 crore and an offer-for-sale of up to 155,333,330 equity shares by promoter and existing shareholder.

Under the offer-for-sale, Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek Holdings, will offload 6,53,33,330 shares and promoter RJ Corp will sell 9 crore shares.

The company has fixed a price band of Rs 86-90 a share for its IPO and at the upper end of the price band, the public issue is expected to fetch Rs 1,838 crore.

The three-day initial share-sale opened for subscription on Wednesday. And, to much surprise the Rs 1,838 crore IPO by Devyani International was fully subscribed in just over three hours of the bidding process.

By 1 pm, the issue received bids for 11,50,95,915 shares against the issue size of 11,25,69,719 shares.

 

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Costa Coffee offer hot drinks for just 50p across UK as part of anniversary celebration
Costa Coffee offer hot drinks for just 50p across UK as part of anniversary celebration
 

Costa Coffee is celebrating its 50th anniversary by offering their handcrafted hot drinks for just 50p.

The offer is available from Tuesday 13th April until Thursday 15th April 2021, and registered Costa Coffee Club mobile app users, who scan the app when they purchase any hot drink at a participating Costa Coffee stores - will receive their drink for just 50p.

Also Read: Costa Coffee makes coffee accessible to all, launches mini-cup

“We are delighted to continue our 50th birthday celebrations by bringing Costa Coffee fans this amazing offer of ANY barista-made hot drink for just 50p,” shared a spokesperson at Costa.

The Costa Coffee app is available for both Apple and Android users.

Customers using either a Costa Coffee Drive-Thru or using Click & Collect via the Costa Coffee mobile app can also avail the order.

“We know it’s been a tough start to 2021 for many and we want to bring some joy to our customers this spring, especially at a time when lockdown restrictions are easing, and we now have an opportunity to catch up with friends and family,” added the person cited above.

 

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Former Costa CMO Sarah Barron joins Domino's as CMO
Former Costa CMO Sarah Barron joins Domino's as CMO
 

Domino’s Pizza has appointed Sarah Barron, ex-chief growth officer at Costa Coffee, as its new chief marketing officer.

Sarah will take over from interim CMO Simon Wallis from this month.

Simon is also international managing director and will now move to the new role of chief transformation officer from 1 February.

Sarah has worked with Cadbury for more than 11 years, where she rose to the position of managing director on premium brand Green & Black’s.

In 2016, she joined Costa as chief marketing officer, rising to CGO in 2019.

“I’m delighted to welcome Sarah to the Domino’s team. She brings a wealth of expertise from some great brands, as well as hugely valuable experience of working within a franchise business,” shared Dominic Paul, chief executive of Domino’s Pizza Group.

 

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Costa Coffee makes coffee accessible to all, launches mini-cup
Costa Coffee makes coffee accessible to all, launches mini-cup
 

British coffee-chain Costa Coffee has added a new ‘Mini’ size to its existing cup family and expanded its incredible value meal deal range, providing customers with more choice than ever before.

Available across all stores nationwide from Thursday 3rd September, the new menu features delicious new food products and great value bundles to make the new season one worth celebrating.

Also Read: Costa Coffee to be launched in 10 of Coca-Cola HBC's markets

On a mission to make handcrafted coffee more accessible to all, Costa Coffee has introduced a fourth cup size to its range.

The new smaller 8oz cup joins the existing cup family, giving coffee lovers more choice than ever before, available from just £1.66 in-store. For even better value, be sure to bring along your reusable cup for a 25p discount, bringing the total cost down to as little as £1.41!

At Costa Coffee we are on a mission to make our premium handcrafted coffee more accessible to all by continuing to launch incredible offers in-store. Our new Mini 8oz cup is the perfect choice for coffee lovers eager to enjoy the great taste of Costa Coffee at a new smaller price point,” shared Eric Tavoukdjian, Commercial Marketing Director at Costa Coffee.

May Interest: Coca-Cola to buy UK’s Costa Coffee chain for $5.1 billion

Whether your coffee order is an iconic Americano, signature Flat White, frothy Cappuccino or creamy Latte, the new Mini delivers the same amount of espresso in a smaller, punchier size, letting the nutty, caramel notes of Costa Coffee’s signature Mocha Italia blend be the star from just £1.66. It’s true that the best things really do come in small packages.

 

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McDonald's and Nando's to close all UK restaurants amid Covid-19
McDonald's and Nando's to close all UK restaurants amid Covid-19
 

Restaurants like McDonald’s, Nando’s and Costa Coffee are joining hand by closing their outlets in UK amid coronavirus outbreak.

McDonald’s has closed over 1270 restaurants, Nando’s over 400 and the coffee chain Costa has closed more than 2000 restaurants in the country.

On Friday, Prime Minister Boris Johnson said restaurants and cafes must close, but exempted take-away food places.

The three chains said they wanted to protect the wellbeing of staff and customers during the coronavirus outbreak, reported BBC.

Also Read: McDonald’s closes dine-in in Delhi-NCR, to serve customers via Delivery

The burger chain employs around 135,000 people in the UK, the majority of which are on zero-hours contracts. However, staff employed directly by the company would receive full pay for their scheduled hours until 5 April.

By that time it expects the government's financial aid package, announced on Friday, to have kicked in, with staff paid 80% of their wages.

Previously, McDonald's had closed its seating areas but had continued to offer takeaway and drive-through services.

In a tweet posted on Sunday night, Nando's said its bosses had "decided that the best course of action right now is to temporarily close our restaurants".

It said the health and safety of its customers and staff was its "highest priority".

Nando's has about 20,000 staff in the UK.

 

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Costa Coffee to be launched in 10 of Coca-Cola HBC's markets
Costa Coffee to be launched in 10 of Coca-Cola HBC's markets
 

Coca-Cola HBC (Coca‑Cola Hellenic Bottling Company) is planning to launch Costa Coffee products in at least 10 of its 28 markets next year. The move is part of Coca-Cola HBC’s aim to address a broad range of consumer and customer needs across multiple channels.

The company will be introducing Costa Coffee in European markets, including Bulgaria, Greece, Hungary, Poland, Romania, Russia and Switzerland.

Zoran Bogdanovic, CEO of Coca-Cola HBC, said, “This is fantastic news that will build genuine value for our customers and for us. Adding a brand as strong as Costa Coffee to our portfolio will allow us to capture more consumer occasions, to partner even more closely with our customers across all channels and strengthen our ability to address every drinking moment throughout the day.

“Our well-established infrastructure, processes and capabilities around coffee mean that we will hit the ground running with this exciting opportunity,” Zoran further stated.

Jennifer Mann, President of Global Ventures for The Coca-Cola Company, added, “We’re thrilled to partner with Coca-Cola HBC to bring our great coffee to more consumers. This new agreement is another example of how Costa Coffee is helping Coca-Cola become a total beverage company.”

Costa Coffee was acquired by The Coca-Cola Company in January 2019 in a deal worth £3.9 billion.

 

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Coca-Cola completes Costa Limited acquisition
Coca-Cola completes Costa Limited acquisition
 

The Coca-Cola Company has completed Costa Limited acquisition from Whitbread PLC. The $4.9-billion transaction has been completed following the approval from regulatory authorities in the European Union (EU) and China.

The acquisition was announced on August 31, 2018. Founded in London in 1971, Costa has operations in more than 30 countries.

The acquisition of Costa gives Coca-Cola a significant footprint in the global coffee business, which is growing at 6% annually.

James Quincey, Chief Executive Officer, The Coca-Cola Company, said, "We see great opportunities for value creation through the combination of Costa's capabilities and Coca-Cola's marketing expertise and global reach."

"Our vision is to use the strong Costa platform to expand our portfolio in the growing coffee category," he further stated.

Alison Brittain, Chief Executive of Whitbread, added, "We wish our friends and colleagues at Costa all the very best for their future success. Whitbread acquired Costa 23 years ago, when it had only 39 shops. Costa has grown to become a leading, international coffee brand, and Coca-Cola is the right partner to take Costa to the next stage of expansion."

 

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Coca-Cola to buy UK's Costa Coffee chain for $5.1 billion
Coca-Cola to buy UK's Costa Coffee chain for $5.1 billion
 

Coca-Cola is buying Costa Coffee, world’s second largest coffee shop chain, from Britain's Whitbread Plc for an enterprise value of $5.1 billion. The acquisition will give Coca-Cola almost 4,000 coffee outlets in the UK and across Europe.

The deal has been agreed unanimously by the Whitbread board as in the best interests of shareholders. Whitbread had been in the process of demerging its coffee business from its hotel chain.

Costa was acquired by Whitbread in 1995. At that time, it had only 39 shops.

The acquisition will help Coca-Cola to move away from fizzy drinks towards healthier options for increasingly health-conscious consumers.

James Quincey, CEO of Coca-Cola, said, "Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform."

For Whitbread, the deal will reduce debt and contribute to the pension fund. It will further expand its hotel chain Premier Inn in the UK and Germany.

Alison Brittain, Chief Executive of Whitbread, said, "The announcement represents a substantial premium to the value that would have been created through the demerger of the business and we expect to return a significant majority of net proceeds to shareholders."

 

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Britain Coffee Chain Costa Coffee Raises 6.7 Percent profit
Britain Coffee Chain Costa Coffee Raises 6.7 Percent profit
 

One of Britain biggest coffee shop operator Costa coffee have rose 6.7 percent profit as it added more premium Inn rooms and opened more Costa coffee oulets.

In a statement company said” Underlying pretax profit in the six months to Aug. 31 was 328 million pounds ($433 million) while revenue rose 7.4 percent to 1.67 billion pounds. At Premier Inn, UK revenue per available room (RevPAR) rose 1.8 percent to 53.46 million pounds. The business was on track to have 85,000 rooms by 2020 from 70,120 rooms at the end of the half year.”

In Britain, it opened over 2,000 new Premier Inn rooms and added 21 more Costa stores during the first half.

Costa UK revenue rose 8.3 percent to 542 million pounds driven by good response to its breakfast and lunch ranges and addition of 108 net new stores.

 

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?Costa Coffee launches new range of curated hot and cold beverages
?Costa Coffee launches new range of curated hot and cold beverages
 

Costa Coffee is all set to celebrate the season with a new range of handcrafted hot and cold beverages curated specially for the festive period leading up to Christmas and New Year.

Costa's new beverage range includes luxuriant handcrafted hot and cold beverages to bring cheer and add a zing to the festive season with the flair and flavour only Costa Coffee can promise.

Coffee lovers at Costa can choose from a wide new range of hot and cold handcrafted beverage range this festive season. The hot range includes the Honey Hot Chocolate, Black Forest Hot Chocolate, Salted Caramel Cappuccino and Chocolate Cookie Latte and the cold range includes Black forest Chocolate Frostino, Chocolate Cookie Frostino and Salted Caramel Frostino.

Ashish Chanana, COO, Costa Coffee India, said, "This festive season, we wanted to give our customers a London style Christmas experience. We are sure that our range of indulgent hot and cold festive drinks, handcrafted by our expert baristas will hit the spot with all our patrons and spread festive cheer."

 

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