logo
Consumers in India are willing to pay more for their cup of coffee despite all-time high prices, says Philippe Schaillee, global CE0, Costa Coffee

Consumers in India are willing to pay more for their cup of coffee despite all-time high prices, says Philippe Schaillee, global CE0, Costa Coffee

Economic Times30-04-2025

Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
New Delhi: Consumers in India are willing to pay more for their cup of coffee despite all-time high prices as the country's GDP and incomes grow, Philippe Schaillee, global chief of British coffee chain Costa Coffee, told ET in an interview."Tea drinking nations are gradually pivoting to coffee, especially as GDP and incomes grow. A very significant percentage of these are younger consumers," Schaillee said.India has now moved to a "scale market from a seed market," the chief of the British chain said, adding that coffee consumers are getting younger worldwide, including in large markets such as India.He said GenZ, in particular, is directly influencing company strategy, as coffee is seen as an 'aspirational' drink. Coffee prices of Arabica and Robusta, which are at an all-time high, dented by "a combination of worse-than-expected harvests impacted by climate change and global trade disruptions," has led to steep increases in consumer prices of ready-to-drink coffees and powders and has severely hit margins of companies."I have never seen such levels of pricing in two decades and that's concerning, but I expect and hope prices will normalise in the second half of next year, as global disruptions ease," said Schaillee, currently on an India visit. The chain, which operates over 200 stores in India, is 'balancing prices between entry-level and premium products" to keep consumer demand ticking.The UK chain is owned by The Coca-Cola Company but operated by Ravi Jaipuria-owned Devyani International (DIL) in India. Jaipuria's group company Varun Beverages is PepsiCo's single largest bottler in India. Responding to ET's query on whether this could be a potential conflict of interest, Schaillee said: "Absolutely not. Devyani operates as an independent foods and beverages retail business."The Coca-Cola Company acquired Costa Coffee in 2019 for $4.9 billion to broaden its portfolio beyond carbonated drinks amid changing consumer preferences.Costa Coffee operates almost all its 200-plus stores in India in large urban cities and that focus will stay for now, before it begins to tap smaller markets. "I am from Belgium. In India, a tier-1 city is the size of Belgium. That's where we see consumers most predisposed to coffee consumption," he said. It reported revenue of Rs 152 crore in FY24, compared to Rs 101.8 crore in the previous year, growing 49% year-on-year, according to the latest annual report by DIL, which has exclusive franchise rights for the UK-based cafe chain in India.The chain's gross profit stood at '116.6 crore, up 45% from the year-ago period, the report said.The company did not disclose net profit.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

IITMS pilot project nears completion at key traffic junctions
IITMS pilot project nears completion at key traffic junctions

Time of India

time23 minutes ago

  • Time of India

IITMS pilot project nears completion at key traffic junctions

Nagpur: The Rs 197-crore Integrated Intelligent Traffic Management System (IITMS) pilot project neared completion at ten critical traffic intersections across the city, confirmed additional municipal commissioner Vaishnavi B. The initiative represents a significant step towards modernising urban traffic management. The project involved installing advanced CCTVs, sensors, and UPS batteries and reached its final stages. Sources indicated that installation work was completed at all 10 locations, and the focus shifted to rigorous testing and connection checks. This phase ensured that all components, including wiring and footage connectivity, functioned optimally. At Kachipura intersection, land development and cable pooling work commenced, paving the way for implementing automated traffic signals (ATS). Although integrating artificial intelligence (AI) into the system will take additional time, most junctions were anticipated to be AI-enabled within the next few days. The command and control centre (COC) expected to display all junctions shortly, although minor network issues related to the smart city infrastructure were being addressed. "The pilot project is not merely a test but a comprehensive evaluation of the system's functionality. Once all components are verified, the project will be presented to the commissioner for approval. This demonstration will ensure that the system meets the required standards before full-scale implementation, which is projected to be completed by December 2026," said Vaishnavi.

MCG plans 20% hike in water tariff to bridge revenue gap, seeks uniform billing
MCG plans 20% hike in water tariff to bridge revenue gap, seeks uniform billing

Time of India

time28 minutes ago

  • Time of India

MCG plans 20% hike in water tariff to bridge revenue gap, seeks uniform billing

Gurgaon: Metered water supply rates for residential plotted areas may go up by 20%, while unmetered water connections may see a 50% hike if an MCG proposal submitted to urban local bodies (ULB) department goes through. The corporation's proposal stems from the substantial difference between the amount MCG pays to GMDA for bulk water supply and the charges collected from residents for water services. MCG chief engineer Vijay Dhaka says the steep hike of rates for the unmetered connections "is to encourage people to have metered water connections" — hence the proposal to increase the water and sewerage charges by 20% for the metered connections in the residential areas and 50% for the unmetered connections". MCG suggests implementing uniform rates citywide by adopting the Haryana Urban Development Authority (HUDA) notice of Jan 12, 2018, with slight modifications to reduce the revenue-expenditure gap. MCG currently follows two different charging mechanisms: one for areas transferred from HSVP builder areas and another for old Gurgaon and villages. In HSVP sectors, certain private developers have established townships and colonies. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo These private builders were responsible for maintaining and operating water supply and sewerage services. It is mentioned in the MCG's proposal that GMDA supplied bulk water to these colonies at a rate of Rs 10 per kilolitre, in accordance with govt policy. Following this, five colonies, namely Palam Vihar, Suncity, Sushant Lok-1, South City-1 and South City-2, were transferred to MCG in 2019. Currently, MCG collects user charges for water supply and sewerage services in both HSVP sectors and these townships, based on Haryana Urban Development Authority (HUDA) notification dated Jan 12, 2018. For residential plotted colonies, water charges are Rs 2.5 per KL for initial 10 KL usage, followed by Rs 5 per KL for subsequent 10 KL as per this notification. Rural areas pay Rs 2 per kilolitre for water and sewerage services, as per PHED notification of April 3, 2017. This rate is double what MCG charges from old Gurgaon and incorporated villages, based on ULB department rates from March 9, 2011 notification. The corporation has identified rate inconsistencies between the two notifications that determine charges across different city areas under MCG jurisdiction. This variation in revenue collection could potentially cause legal issues, the civic body has noted in its proposal. The MCG's submission to ULB department indicates that it receives approximately 80 lakh kilolitres of drinking water monthly through 148 bulk connections at Rs 10 per kilolitre, distributing to old town, villages, HSVP sectors and private builder areas. The corporation pays about Rs 10 crore monthly to GMDA for bulk supply and sewerage maintenance, plus additional maintenance and leakage costs. However, monthly revenue collection remains at Rs 5 crore, creating financial strain. The corporation suggests increasing institutional metered connection charges from Rs 10 per KL to Rs 12 per KL and industrial and commercial metered connection charges from Rs 15 per KL to Rs 18 per KL. Chaitali Mandhotra, a resident of Ardee City, said, "Water and sewerage charges are a complete mess in Ardee City. There are people who have not installed metres and they are getting bills amounting to a flat rate of Rs 550 plus taxes." "Then, people are getting bills for the metered connection as per the HUDA notification. Moreover, there is a third category of people like me, who have already installed a water meter. However, I am still getting a flat bill like those with unmetered water connections. Moreover, in our colony, a majority of the houses are ground-plus-two floors. In these residential buildings, some units are getting one bill only for all three floors. However, some are getting three separate bills. So, this billing system needs to be regulated."

Chandigarh administration to provide 10% job reservation and increased compensation for Agniveers and Armed forces families
Chandigarh administration to provide 10% job reservation and increased compensation for Agniveers and Armed forces families

Time of India

time28 minutes ago

  • Time of India

Chandigarh administration to provide 10% job reservation and increased compensation for Agniveers and Armed forces families

1 2 Chandigarh: The UT administration is set to offer a 10% reservation in government jobs for Agniveers. Acting on a recommendation from Zila Sainik Board, the administration plans to implement this reservation in all direct recruitment for Group B and Group C posts. The move aims to recognise the Agniveers' service and dedication to national security, ensuring better employment opportunities for them after their military tenure. A meeting of Zila Sainik Board (ZSB), Chandigarh, was convened on Tuesday under the chairmanship of Nishant Kumar Yadav, deputy commissioner-cum-president, ZSB, Chandigarh. The meeting was attended by Brig BS Dhillon (retd), vice-president ZSB; Lt Col Sanjeev Sharma, representative of Station HQ Chandigarh; Lt Col RK Singh (retd); Shri KK Sharda (social worker); and Col HS Ghuman (retd), Zila Sainik Welfare Officer. The board deliberated on key issues pertaining to the welfare of ex-servicemen and their families. After thorough discussions, the board forwarded some proposals to the administration. It proposed to increase the rate of ex gratia compensation from the existing Rs 50 lakh to Rs 1 crore for the families of soldiers of the Defence Armed Forces and Paramilitary Forces who are martyred in action. The board also proposed the introduction of a new scheme to provide one-time financial assistance of Rs 1 lakh to the next of kin of defence personnel who lose their lives in harness and are declared 'physical casualty (fatal)' other than those occurring in battle. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo The deputy commissioner emphasised the urgent need to renovate the Sainik Rest House in Sector 21 and instructed the officials of the ZSB to coordinate with the chief engineer to expedite the process of floating the tender and initiate the renovation work as per the approved plan.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store