These companies are pouring billions into piping hot coffee market

Demand for the morning pick-me-up is on the rise and beverage companies are gearing up to exploit the trend.

Vikram Barhat 3 October, 2018 | 5:00PM

As winter approaches, things are heating up in the hot beverages industry. It's getting particularly frothy in the coffee market where rivalries are brewing and capital is pouring in.

Sensing a colossal opportunity, leading brands are aggressively sinking billions in acquisitions and tie ups in a bid to corner the piping hot market for the world's fastest-growing drink categories.

Soda maker Coca-Cola recently stormed into the fiercely competitive coffee market with the purchase of British coffee chain Costa Coffee for a whopping US$5.1 billion, its biggest acquisition ever. The deal comes close on the heels of Swiss food giant Nestlé upping its coffee stakes by infusing US$7 billion in a deal with Starbucks for the rights to sell the U.S. coffee chain's products globally.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Coca-Cola Co45.15 USD2.82
Dunkin' Brands Group Inc65.22 USD-0.31
McDonald's Corp184.88 USD0.30
Starbucks Corp74.29 USD0.98

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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