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Coca-Cola in talks about cut-price £2bn sale of Costa Coffee

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Costa Coffee could change hands again after it emerged that Coca-Cola has met potential buyers to discuss a cut-price deal to off-load the chain.The American soft drinks company is said to be working with bankers on a review of Costa, Britain’s biggest coffee chain, that could lead to it being sold.Coca-Cola had high hopes for the Costa brand when it bought it in 2018 from Whitbread, owner of the Premier Inn hotel chain, for £3.9bn.However, the chain has struggled with rising costs, not least the rise in coffee bean prices, and increased high street competition.

The sale of Costa could realise a multibillion-pound loss for Coca-Cola, according to City analysts.One told Sky News, which first reported the sale talks, that it could fetch just £2bn which would be nearly half what it had paid for the business.Coca-Cola’s chief executive, James Quincey, told investors last month that Costa had “not quite delivered” and was “not where we wanted it to be from an investment hypothesis point of view”.He added that the business was “in the mode of reflecting on what we’ve learned, thinking about how we might want to find new avenues to grow in the coffee category”.Coca-Cola is said to have held talks with a small number of possible bidders, including private equity firms, according to Sky News, which cited unnamed sources.

The investment bank Lazard is reportedly helping Coca-Cola to review options for the chain and gauge interest from buyers.Preliminary offers are expected in early autumn, although the report noted that the drinks maker could decide not to proceed with a sale.Costa has more than 2,000 outlets in the UK and early 18,000 employees.However, as well as rising costs it has faced competition from upmarket rivals, such as Pret a Manger and Gail’s.Costa turned over £1.

2bn in its 2023 financial year, according to the most recent annual accounts filed at Companies House, up from 9% on the previous year.However, it reported a pre-tax loss of £9.6m, compared with a profit of £245.9m the year before.Costa blamed the loss on inflationary pressures, as well as write-downs on the value of some investments.

Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionCosta, which was founded in 1971 by Italian brothers, Sergio and Bruno Costa, was sold to Whitbread for £19m in 1995,When Coca-Cola bought the business, Quincey said there were “great opportunities for value creation”,While Costa’s financial performance has been mixed, last year it paid out £85m in dividends to its owner,Coca-Cola and Lazard were approached for comment,
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Is behaviour at work getting worse – or are we just becoming oversensitive snowflakes? | Emma Beddington

I would hate to be in human resources at the moment. Admittedly, as someone with no discernible people skills, I would always hate it, but I’ve been imagining the awkward HR meetings behind the scenes of the recent wave of “what is acceptable workplace behaviour” rulings from UK employment tribunals recently, and … oof!I’m thinking, particularly, of last week’s ruling on whether younger chatty workers disturbing an older colleague constitutes age discrimination (it didn’t), but there are many more. Comparing a colleague to Darth Vader in an online personality test resulted in a £30,000 compensation award. Leaving someone out of the tea round could contribute to unfair constructive dismissal. Sighing at a colleague could be discriminatory

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Exposure to some Pfas could increase risk of multiple miscarriages – study

Exposure to some toxic Pfas “forever chemicals” may increase the risk of having multiple miscarriages, new peer-reviewed research has found.The study, which tracked about 200 women in China, found those who had at least two miscarriages, or unexplained recurrent spontaneous abortions, showed higher levels of several types of Pfas in their blood. The study adds to a long list of reproductive harms associated with Pfas exposure.“Prior studies have identified that Pfas were associated with adverse pregnancy outcomes, but the potential influence of Pfas’s exposure on [recurrent miscarriages] remained uncertain,” the study’s authors, with the Chinese Center for Disease Control and Prevention, wrote. “Our investigation identified significant associations between [some Pfas] and increased risks of unexplained recurrent spontaneous abortions

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Labour to abolish most short prison sentences in England and Wales

Ministers will legislate next month to abolish most short prison sentences, toughen up community punishments and introduce a Texas-inspired system whereby inmates can earn early release as part of an attempt to avert another prison crisis.Government sources said the legislation, which will bring about the biggest shake-up in sentencing laws in England and Wales for three decades, would be introduced once MPs had returned to the Commons in September.They said Shabana Mahmood, the justice secretary, was conscious of the need to implement the changes quickly before prisons had another capacity crunch next summer.Thousands of inmates were released after Labour won power last summer in an emergency measure to deal with overcrowding.The sentencing bill will include measures backed by the government that were recommended by the former Conservative justice secretary David Gauke in a review in the spring

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Maha is backing this ‘natural’ infertility treatment. Is it the right’s path to limiting IVF?

For Erica L and her husband, in-vitro fertilization was the “nuclear option”.After two years of trying to conceive, Erica and her husband had no idea why they could not have a baby. Doctors said only that they had “unexplained infertility”, a non-diagnosis of a diagnosis that is given to an estimated 15% of people trying to conceive. Erica was not ideologically opposed to trying IVF, but felt daunted by the price and unpredictability.Then Erica stumbled across a clinic that specialized in “restorative reproductive medicine”, or RRM

3 days ago
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Nature, respect and work all help to reduce prisoners’ reoffending | Letters

Your article about the prisoner rehabilitation project LandWorks, excellent though it was, arguably placed too much emphasis on nature as the chief factor accounting for the project’s undoubted success (‘A natural antidepressant’: how working with the land is helping ex-prisoners, 16 August).I have been a keen supporter of the project since it was set up 12 years ago. The remarkably low reoffending rate (5%) seems to me to be due largely to participants being treated with respect, together with the wraparound care they receive while working at LandWorks. This ranges, as the article explains, from help with accommodation to finding work.I am sure that, with the same dedication and kindness, a similar project could be set up in the middle of a city, also with remarkably low costs

3 days ago
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Bringing the human touch into our cities | Letters

Carlo Ratti’s welcome call for the humanising of urban public spaces (We used AI to analyse three cities. It’s true: we now walk more quickly and socialise less, 18 August) chimes well with Thomas Heatherwick’s latest series of Building Soul on Radio 4, where his prime concern is to encourage joy in our built environment.May I make the case for a too often overlooked space in the heart of Preston? Winckley Square is composed of largely Georgian townhouses that define an undulating park.In the mid-20th century, a public space was created with paths laid out in “desire lines” across the square. By the 21st century, repeated flooding under an overarching tree canopy made for a distinctively less inviting place

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UN special rapporteur will contribute to ‘Gaza tribunal’, Jeremy Corbyn says

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Deal to get ChatGPT Plus for whole of UK discussed by Open AI boss and minister

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‘It has cycled back around’: Brick Lane and Bradford fear a repeat of infamous far-right clashes

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Silicon Valley is full of wealthy men who think they’re victims, says Nick Clegg

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‘Why here?’: inside mid-Wales village where far-right figure has created a settlement

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‘If I felt Zuckerberg and Sandberg were monsters, I wouldn’t have worked at Meta’: Nick Clegg on tech bros, AI and Starmer’s half measures

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