Costa is diversifying in two ways. Its first coffee shop outside the UK was opened in 1999, and now almost 40% of its outlets are located beyond the domestic market. Also, it recently acquired Coffee Nation, which operates coffee vending machines in locations such as motorway service stations. These machines are unusual in serving beverages made from ground coffee rather than instant powder, aiming for improved quality. The network is being converted to Costa Express branding, and had expanded to around 2,500 machines