Coca-Cola continues to expand into the food delivery market with its acquisition of a stake in Thrive.
Coca-Cola, the global beverage giant, has acquired a 15% stake in the San Francisco-based food delivery platform, Thrive, for an undisclosed amount. The move is seen as a strategic investment by Coca-Cola to expand its footprint in the rapidly growing food delivery market and diversify its revenue streams.
Thrive is a food delivery platform that partners with top restaurants and offers customers an elevated dining experience through curated menus and sustainable packaging. The company’s focus on quality and sustainability aligns with Coca-Cola’s vision of creating a more sustainable future.
The investment in Thrive is part of Coca-Cola’s broader strategy to invest in companies that are shaping the future of food and beverage. The company has already made significant investments in recent years, including a stake in the sports drink company BodyArmor and a strategic partnership with the coffee company, Costa Coffee.
The move by Coca-Cola to acquire a stake in Thrive comes at a time when the food delivery market is booming, driven by the COVID-19 pandemic and changing consumer preferences. According to a report by Allied Market Research, the global food delivery market is expected to reach $1.38 trillion by 2026, growing at a CAGR of 16.7% from 2019 to 2026.
The pandemic has accelerated the shift towards online ordering and home delivery of food, leading to an increase in demand for food delivery platforms. This trend is expected to continue even after the pandemic, with consumers preferring the convenience and safety of online ordering.
The investment in Thrive is also seen as a way for Coca-Cola to diversify its revenue streams and reduce its dependence on traditional beverages. The company has been facing declining sales of sugary drinks in recent years, as consumers become more health conscious and look for healthier beverage options.
By investing in companies like Thrive, Coca-Cola is positioning itself to take advantage of the growing trend towards healthy and sustainable food and beverage options. The company has also been investing in its own portfolio of non-alcoholic beverages, including juices, teas, and water, to cater to changing consumer preferences.
In a statement, Coca-Cola’s Chief Growth Officer, Nikos Koumettis, said, “We are excited to partner with Thrive as they continue to innovate and lead in the food delivery space. This investment is part of our broader strategy to invest in fast-growing, consumer-facing brands that are shaping the future of food and beverage.”
Thrive’s CEO, Matt Cohen, also welcomed the investment, stating, “We are thrilled to partner with Coca-Cola and leverage their expertise and resources to further expand our business and offer an even better experience for our customers.”
The investment in Thrive is expected to help the company expand its reach and offer more dining options to its customers. The platform has already partnered with some of the top restaurants in the San Francisco Bay Area, and the investment by Coca-Cola is expected to help the company expand to other markets in the US and beyond.
Coca-Cola’s investment in Thrive is a strategic move to expand its footprint in the rapidly growing food delivery market and diversify its revenue streams. The investment is part of Coca-Cola’s broader strategy to invest in fast-growing, consumer-facing brands that are shaping the future of food and beverage.
