A globally popular coffee chain could soon relaunch in Hungary

Costa Coffee Hungary
https://www.facebook.com/CostaCoffeeHungary

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.

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