Costa Coffee

In January 2026, Coca-Cola tried to sell Costa but nobody wanted it. Before the price war, China had three coffee names: Starbucks, Costa, and Pacific Coffee. Starbucks entered China in 1999; Costa Coffee followed in 2006 and Pacific Coffee in 2011. Costa entered through a franchise partnership with Beijing Hualian Group (a Chinese retail conglomerate) which ran the Chinese stores, operating in its own way. A direct consequence of franchise inconsistency: Some customers noted that Costa Coffee in Beijing tasted a little different from Costa Coffee in Shanghai. Pairing with the inconsistencies, it did not innovate or develop new ways of acquiring and attracting new customers. There was no app, no heavy discounts, no flow. It was just coffee that averaged at above 35 RMB while Luckin was selling at 9.9. The price war didn't kill Costa, its own stillness did.