Youngsters prefer coffee to tea: Costa’s global CEO
Identifying India as its priority market, British coffee chain brand, Costa Coffee’s global CEO Philippe Schaillee on Friday said that it will add 50 more speciality coffee stores in the country. The company, which is now owned by beverages major Coca-Cola, recently opened its 150th store in the country.
Speaking at a media roundtable, Schaillee said that his bullishness on India is on the back of growing number of youths, who are shifting towards coffee from tea and a rise in disposable income. “We are very happy with the growth rates in terms of store openings. We have a partner, which is committed to growth,” the CEO said. In India, Costa Coffee is operated through its franchise partner Devyani International (DIL).
According to Schaillee, India is among the top 20 coffee markets. Like other tea-drinking countries, there is a shift happening towards coffee in India, which is led by the younger generation. He said the per capita consumption of coffee in India stands at 20-30 cups as against the global average of 200 cups, adding that younger consumers see “badge value” in carrying a cup of coffee.
Schaillee said that as part of expansion, Costa Coffee would not only be restricted to larger cities but also explore opportunities from segments as travel hubs like airports, train stations, office campuses etc, with specific propositions. However, he ruled out reducing the coffee prices at such outlets. The company will continue its focus on increasing the like-to-like sales in every store.
Interestingly, Devyani International, Costa Coffee’s franchisee, is promoted by RJ Corp, which is also a promoter of Varun Beverages (VBL), which is the bottling partner of PepsiCo.
According to the latest annual report from DIL, it
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