Costa Warns Climate Change Will Drive Coffee Prices Higher as Chain Returns to Profit

Costa Coffee warned on October 6, 2026, that climate change threatens to push coffee prices higher, even as the chain returned to profitability following a store overhaul. The UK-based coffee chain reported a £20.4m operating profit for 2025, reversing a £13.5m loss the prior year, with sales up 5pc to £1.29bn. Chief Executive Philippe Schaillee said arabica bean prices have remained elevated, with exchange warehouse stocks at a 26-year low amid drought in Brazil and volatility tied to El Niño. A regular latte now costs £4.40, up from £2.90 five years ago. Costa, owned by Coca-Cola since its £3.9bn acquisition in 2018, invested over £100m in store refurbishments last year. Coca-Cola abandoned plans to sell the chain earlier this year after failing to secure an acceptable price.