Executive Summary

Coca-Cola may buy major stake in Cafe Coffee Day after acquiring Costa Coffee
 Soft drinks maker Coca-Cola has initiated preliminary talks with Cafe Coffee Day
(CCD) to acquire a substantial stake in India's largest coffee chain. If the deal
materialises, it would be Coca Cola's second major investment after acquiring UK-
based Costa Coffee for $5.1 billion in September 2018.
 Recognising the gradually changing consumer preference for healthier beverages over
fizzy drinks, Coca Cola has been moving into the nutrition space for a while now.
 Since all the coffee served at Coffee Day outlets comes from the 10,000 acres of
plantations that Siddhartha owns in Chikmagalur, Karnataka.
 He opened CCD's first outlet on Bangalore's upscale Brigade Road in 1996. The coffee
chain's first launch came at a time when Bangalore was on the cusp of a transformation
from a pensioners' paradise to an IT and lifestyle haven.
 Compared to Costa, which operates in 50-70 outlets across India. CCD runs around
1800 outlets and competes with the Starbucks and Barista. However, it has been hit
hard by new entrants like Chai Point, Which serves tea and snacks for lower end of the
market, while Starbucks cater to premium end of the market
 The CCD business generates 8% increase in the revenue in FY19 while net profit
increased by 10%.