Latest news with #Schaillee
Time of India
01-05-2025
- Business
- Time of India
Costa Coffee sees rising sips grow its India business
For British coffee chain Costa Coffee, there's no going slow on India expansion despite an uncertain global macro environment, which has nudged many businesses to review their growth strategies. In India, where many people still love waking up to a hot cup of tea and debates over chai versus coffee continue to rage, parts of the population are moving from tea to coffee. Millennials with higher disposable incomes and Gen Z are driving the market opportunity in India, where the coffee space is growing at 10 per cent -12 per cent , double the rate of global markets, said Philippe Schaillee, CEO at Costa Coffee, which was acquired by The Coca-Cola Company in 2019 in a $4.9 billion deal. India, which is among the company's top 10 markets globally, has the potential to get into the top five markets in five years, Schaillee, who is on a trip to the country, said. "More and more of the (Indian) population is starting to increase the incidence of all the beverages they drink, starting to shift from tea to coffee and increasingly to premium, specialty coffee, which is partially driven by the fact that they see coffee as a product that delivers healthy energy. We have the benefit of being in a category that is just growing rapidly within an overall economic environment that is slowing down," Schaillee said in a media round table on Wednesday. The local food and beverages segment saw some slowdown in the second half of last year, but consumption picked up in the March quarter. "We are definitely not moderating our growth rate in India," Schaillee said, adding that the company will continue to open 40-50 new outlets every year as targeted. Costa Coffee, which operates in the specialty coffee space in India through its franchisee partner Devyani International, competes with a mix of global giants like Starbucks, Tim Hortons, and new-age players like Blue Tokai Coffee Roasters and Third Wave Coffee in the market alongside traditional chains such as Cafe Coffee Day. Given the company's low exposure to the US, the tariffs are unlikely to have any material impact on its business; the steep increase in coffee prices has been a bigger headache for players in the space. "Across the globe, we have passed through green coffee inflation, either directly to consumers or through to our partners and allowed them to decide how they pass on to the consumers," Schaillee said. In India, where the firm sources most of its products locally, the strategy will be not to lower the price points, which Schaillee said hampers the experience of quality coffee, but to diversify its range of offerings to include more accessible options. It will also sell more combo packages (with food) that allow brands the scope to offer discounts to consumers. Costa Coffee has historically had more millennials as its customers, given their higher purchasing power compared to Gen Z, and the same is true for India.
Time of India
30-04-2025
- Business
- Time of India
Costa Coffee sees rising sips grow its India business
MUMBAI: For British coffee chain Costa Coffee, there's no going slow on India expansion despite an uncertain global macro environment, which has nudged many businesses to review their growth strategies. In India, where many people still love waking up to a hot cup of tea and debates over chai versus coffee continue to rage, parts of the population are moving from tea to coffee. Millennials with higher disposable incomes and Gen Z are driving the market opportunity in India, where the coffee space is growing at 10%-12%, double the rate of global markets, said Philippe Schaillee, CEO at Costa Coffee, which was acquired by The Coca-Cola Company in 2019 in a $4.9 billion deal. India, which is among the company's top 10 markets globally, has the potential to get into the top five markets in five years, Schaillee, who is on a trip to the country, said. "More and more of the (Indian) population is starting to increase the incidence of all the beverages they drink, starting to shift from tea to coffee and increasingly to premium, specialty coffee, which is partially driven by the fact that they see coffee as a product that delivers healthy energy. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo We have the benefit of being in a category that is just growing rapidly within an overall economic environment that is slowing down," Schaillee said in a media round table on Wednesday. The local food and beverages segment saw some slowdown in the second half of last year, but consumption picked up in the March quarter. "We are definitely not moderating our growth rate in India," Schaillee said, adding that the company will continue to open 40-50 new outlets every year as targeted. Costa Coffee, which operates in the specialty coffee space in India through its franchisee partner Devyani International, competes with a mix of global giants like Starbucks, Tim Hortons, and new-age players like Blue Tokai Coffee Roasters and Third Wave Coffee in the market alongside traditional chains such as Cafe Coffee Day. Given the company's low exposure to the US, the tariffs are unlikely to have any material impact on its business; the steep increase in coffee prices has been a bigger headache for players in the space. "Across the globe, we have passed through green coffee inflation, either directly to consumers or through to our partners and allowed them to decide how they pass on to the consumers," Schaillee said. In India, where the firm sources most of its products locally, the strategy will be not to lower the price points, which Schaillee said hampers the experience of quality coffee, but to diversify its range of offerings to include more accessible options. It will also sell more combo packages (with food) that allow brands the scope to offer discounts to consumers. Costa Coffee has historically had more millennials as its customers, given their higher purchasing power compared to Gen Z, and the same is true for India. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
30-04-2025
- Business
- Economic Times
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
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 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 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 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 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 chain's gross profit stood at '116.6 crore, up 45% from the year-ago period, the report company did not disclose net profit.
Time of India
30-04-2025
- Business
- Time of India
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
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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 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 chain's gross profit stood at '116.6 crore, up 45% from the year-ago period, the report company did not disclose net profit.
Mint
30-04-2025
- Business
- Mint
Costa Coffee sees India become a top-five market
New Delhi: Despite rising coffee prices and a general slowdown in urban consumption, Costa Coffee will maintain its growth rate in India, expecting the country to become one of its top five markets within the next five years, its top executive said. India is currently in the top 10 of the British coffee chain's markets. "We're definitely not moderating our growth rhythm (in India). We are satisfied with the growth rate over the last couple of years. We continue to be committed to further expansion. We've now opened over 200 stores in India. We're planning to add the same run rate of 40 to 50 new outlets annually," Philippe Schaillee, Costa Coffee's global CEO said in an interview on Wednesday. Also read: The Bengaluru coffee brand serving an environment-friendly cuppa 'Within the overall coffee space India is among the top 20 markets globally; for us it is the top 10 markets. We believe with our current growth rates we can get it into potentially the top five positions in five years—that's kind of aspiration we will pursue... To be very clear, (it's) a super important market for us," he said. Founded in London in 1971, Costa Coffee competes globally with Starbucks and Barista. It entered India in 2005 through a partnership with Devyani International Ltd (DIL), which also operates KFC and Pizza Hut in India and is part of RJ Corp., the operator of PepsiCo's largest bottler in India, Varun Beverages . Costa, which has over 4,300 outlets across 45 markets globally, was acquired by Coca-Cola in 2018 for $3.9 billion. To be sure, urban consumers, hit by high inflation, have been shying away from spending. Last week Tata Consumer Products Ltd, which operates rival Starbucks in India via an equal joint venture said it has tempered outlet opening for the coffee chain due to a slowdown in general consumption. The chain, however, remains the largest cafe operator in India with a total of 479 stores in India and has plans to take the count to 1,000 by fiscal 2028. Also read: Four years after checking into Subway, Everstone eyes a part exit Costa's Schaillee, however, said that while globally the coffee category grows 5-6% annually, in India it is growing by 10-12%. "We have the benefit that we're in a category that is growing rapidly within an overall economic environment which is slowing down. We did see, in the whole F&B retail space, a bit of a slowdown in the second half of last year in India. But in the first quarter of this year it seems to have accelerated again. We've seen that continue in April. So at this point, we're rather bullish," he added. Schaillee said more consumers in India are increasing their consumption of beverages in general. 'They are starting to shift from tea to coffee and increasingly to premium specialty coffee. This is driven by the fact that they see coffee as a product that delivers healthy energy and for Gen Z it's like a badge value." Coffee companies the world over are also dealing with record-high prices of the commodity. In the fourth quarter of FY25, the average price of Arabica increased 97% year-on-year, while Robusta rose by 65%. Schaillee said the company passes on prices to consumers. Also read: KFC operator Devyani International to acquire majority 81% stake in 'Biryani by Kilo' parent for ₹ 420 crore 'We're living in times of all-time high prices of green coffee. The industry has never seen this in 50 years. Arabica and Robusta are at all-time highs. That, of course, is translated into the cost of a cup of coffee which we have to price true to consumers," he added. 'Our strategy is to reflect the impact of green coffee inflation to the consumer as everybody else in the industry does." Schaillee said he was less concerned about the impact of tariff hikes on the global coffee retail sector, suggesting any effect would be minor, and potentially affecting green coffee prices instead. However, he noted that Costa Coffee has a limited exposure to the US market; and in India it sources most products locally.
