WHITBREAD, the retailing and drinks group, is putting its huge

marketing and retailing muscle into a new opportunity in the High

Street. It has bought the 41-strong Costa Coffee chain and intends

opening about 30 new shops a year for the next few years.

Costa was founded by Italian-born Sergio Costa 30 years ago but he is

now retiring. The sum being paid has not been disclosed.

Originally a blender and roaster of beans, the business was later

expanded into the cafe format with the emphasis on the premium end of

the market.

Its Scottish operations include shops at Edinburgh and Glasgow

airports and Glasgow's Central and Queen Street stations.

Turnover in the year to June 1994 amounted to #55m, with the bulk of

revenue coming from the retailing operations. However, the traditional

wholesaling is still making a substantial contribution thanks to the

swing away from freeze-dried instant coffee back towards roasted and

ground fresh coffee. This has led its market share to recover from 20%

to about 40% over the last decade.

Whitbread's Mike Johnson said research by the Henley Forecasting

Centre had shown that the mini-treat lower spend and small occasion food

and drink market will be a huge growth area for the rest of the deade.

Costa will complement Whitbread's other retailing interests which

include Pizza Hut, TGI Fridays, Beefeater restaurants and pubs and the

Brewers Fayre family-orientated pubs.