Coca-Cola, the beverages giant is negotiating the acquisition of a large stake in Indian chain Cafe Coffee Day (CCD) as part of a move to gain traction in the territory against a drop in demand for carbonated drinks.
Executives expect the deal, if it goes ahead, to hedge risks for the firm by taking advantage of a growing market sector in the territory.
“The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management,” said an executive with knowledge of the matter. “It would give Coca-Cola significant scale in the fast-growing cafe business, compared to aerated soft drinks, which have been slowing down.”
