Philippe Schaillee, the Global CEO of Costa Coffee since April 2023, shares insights into India's evolving coffee culture. He reveals how Costa is navigating the fierce competition from brands like Blue Tokai, emphasizing a city-focused growth strategy with local partnerships. The conversation dives into Gen Z's taste for cold brews and their influence on coffee trends. Philippe also discusses the challenges of post-COVID inflation and maintaining quality, while positioning Costa Coffee as a key player in the burgeoning Indian coffee market.
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insights INSIGHT
Costa's Global Ambition and Scale
Costa Coffee aims to be a top three global premium coffee brand with a startup mindset despite its legacy status since 1971.
It operates in over 40 countries, serving 4 million cups daily through 4,300 outlets, also venturing into ready-to-drink coffee with Coca-Cola.
insights INSIGHT
India's Coffee Market Shift
India is shifting from a tea-drinking culture to premium coffee consumption as GDP and disposable income rise.
Around 40-50 million Indian consumers are moving toward specialty coffee, a key focus for Costa Coffee.
insights INSIGHT
Gen Z Pushes Coffee Trends
Gen Z significantly drives the shift to premium coffee through demand for cold and flavored coffee options.
Costa emphasizes a digital customer journey, with initiatives like the Costa Club loyalty program to engage younger consumers.
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India once seen as a tea stronghold is emerging as a dynamic market for premium coffee. One brand leveraging this pivot is Costa Coffee. The British coffee house has a strange business arrangement in India. Owned by Coke, its outlets are operated by Pepsi’s biggest Indian bottler. Nevertheless and unfazed by growing competition from premium coffee names like Blue Tokai and Tim Hortons, Costa counts India as one of its top markets and wants to expand its footprint of 200 outlets in the near future.
In this episode, Philippe Schaillee, Global CEO at Costa Coffee, talks to host Ratna Bhushan about how the legacy brand is blending tradition with the agility of a startup to win over a new generation of coffee enthusiasts. From Gen Z’s growing appetite for cold brews and flavored options to navigating post-COVID inflation without compromising on quality, Philippe breaks down Costa’s business strategy for a market that is really waking up and smelling the coffee. He sheds light on the company’s city-focused growth strategy, the role of local partnerships, and what sets Costa apart in a fiercely competitive, youth-driven market.
Stay tuned in as we explore What makes a coffee experience aspirational today? Can global brands win by going hyper-local? And is India the future powerhouse of the global coffee revolution?