A globally popular coffee chain could soon relaunch in Hungary
The Costa coffee chain can relaunch in Hungary with the help of a new franchise partner.
The Hungarian coffee market is worth around HUF 200 billion (EUR 5,223,890) in annual turnover. A third of this figure comes from retail sales and two thirds from catering. Coca-Cola HBC Hungary holds a share of approximately 8-9% in Hungary.
László Békefi, Managing Director of Coca-Cola HBC Hungary, said that the company distributes two strong coffee brands. The company holds full ownership of Costa and includes Caffe Vergnano in its portfolio.
The acquisition of Costa took place in 2020 as part of a significant investment, while a 30% minority stake in Vergnano was obtained in 2022. According to László Békefi, Vergnano represents the classic premium category, specifically linked to traditional coffee culture. Consequently, it is distributed within the catering sector, present in numerous cafes and available in a few retail outlets through select partners.
“In contrast, Costa is an urban, dynamic and youthful brand, primarily prominent in the capsule market but can also be found in certain restaurants,” Békefi explained to vg.hu.
The CEO mentioned that both brands can be effectively differentiated, allowing for a separation of their target groups. Békefi acknowledged that while both brands have a presence in both sales sectors, they differ in their market emphasis, albeit with a significant overlap.
Costa makes a comeback in Hungary
The Costa coffee chain withdrew from Hungary during the pandemic. However, in Hungary, both Costa and Vergnano are experiencing success, with steadily growing sales. Békefi commented, “Vergnano has gained a particularly strong foothold in Hungary, and it’s no coincidence that Carolina Vergnano, the majority owner of the brand, has come to Hungary to enjoy the fruits of her labour.”
Vergnano is now represented in 90 countries and maintains a strong position in the global market.
Why? Budapest already has a bazillion excellent cafes. What can a chain, with its identikit products offer the market that lacks nothing?!?
Concur – Steiner Michael.
If – If they return, the STILL remaining number of shops they previously RENTED that remain empty premises, in Budapest, make them RETURN and Pay the Price.
I wish people would stop equating Budapest to the whole of Hungary. This doesn’t happen in any other country I can think of. Germany is far more than just Berlin, Spain is certainly not considered as just Madrid, far from it and Hungary is not just Budapest. A Costa cafe might not benefit Budapest but there are many other towns, cities and shopping centers where people might welcome one. Hungary outside of Budapest is a wonderful place with great people who are just as worthy of attention and investment as Budapest.
Coke competes with Soros Inc in funding BLM and CRT- million spent on white European hate. They spend millions in
europe to bring it here. Imajine seeing George Floyd stickers all over Budapest based on a lie. Coke has more money than Phizer who brought you the Covid scam.
BLM riots-360 business destroyed – 24 dead and billions of dollars in damages over 6 months of violent riots- the media called it peaceful protest.