Coke-CCD Deal Talks: Beverage company Coca-Cola is in talks to acquire a significant stake in India’s largest coffee chain Café Coffee Day (CCD), according to media reports.

Besides the view to diversify its portfolio, the soft drink giant has reportedly entered into exclusive talks to pick up a significant stake so as to hedge the risks associated with the exposure to carbonated drinks.

On the other hand, for CCD, an acquisition by Coca-Cola will mean much-needed funds to reduce the debt on the books of parent Coffee Day Enterprises. The reports said, the discussions are currently being led by Coca Cola’s Atlanta office.

However, the report also added that Coca-Cola's spokesperson has denied the news about a possible acquisition and the company had no comment to offer at this stage. Cafe Coffee Day too had declined to comment.

Cafe Coffee Day is owned by Coffee Day Global, a subsidiary of Coffee Day Enterprises and is India’s market leader in the organised café space with around 1,750 cafes across the country. Other players are far behind, with Barista operating 200 stores, Starbucks running 146 stores and Costa having just 50 stores in India.

While Coca-Cola has been looking to make inroads into the Rs 2,500-crore domestic coffee retail market in line with its global strategy of diversifying into non-carbonated drinks, according to media reports.