In August, Coca-Cola agreed to buy Costa from Whitbread for $5.1 billion, including debt, to extend its push into healthier drinks and take on the likes of Starbucks, according to a Reuters report.
In its response to the ASA, Costa said its ad was not suggesting people choose an avocado over a bacon sandwich or egg muffin, but that it “had a promotional offer to satisfy breakfast requirements.” It said that the ad “centred on the frustration and unpredictability of the avocado,” which has become a popular breakfast dish.
Radio ads in the U.K. must be cleared for broadcast by Radiocentre, which said that it would be “unlikely that the majority of consumers would regard the ad as a serious comparison between bacon rolls and egg muffins and avocados,” according to the ruling on the ASA’s website. But the ASA, which looks at complaints against commercials, disagreed.
“We considered that, although the ad was light-hearted, it nevertheless suggested avocados were a poor breakfast choice, and that a bacon roll or egg muffin would be a better alternative, and in doing so discouraged the selection of avocados,” the ASA stated on its website.
Costa had 2,467 stores in the U.K. and 1,415 internationally as of May. If Coca-Cola takes Costa to the U.S., it’s more likely to be in food service, such as supplying coffee beans, rather than opening stores, CEO James Quincey told CNBC’s Sara Eisen in August.
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