Costa Coffee CEO Philippe Schaillee: ‘India Among Top 10 Priority Markets’
The brand recently opened its 150th store in New Delhi
British coffee chain brand Costa Coffee has acknowledged India among its top 10 priority markets. It intends to add 40-50 more speciality coffee stores annually.
A subsidiary of the Coca-Cola company, Costa Coffee made its foray into India in 2005, operating through its franchise partner Devyani International.
The company recently partnered with multiplex chain PVR-INOX.
On the opening of its 150th store in New Delhi, Philippe Schaillee, the global chief executive officer of Costa Coffee, expressed, “We have a partner, which is committed to growth. Our plan is to open 40-50 new stores every year. If we see opportunities to do more, we will do it.”
Costa Coffee is also banking on its partnership with the ICC Men’s World Cup to capture a bigger market share.
Schaillee stated, “India stands out for its potential and has become one of the top 20 markets globally. It is one of the fastest growing, with a compounded annual growth rate of 11 percent as compared to a global market rate of 5 percent.”
He added, “The shift is driven by the younger generation’s exposure to specialty coffee stores alongside rising disposable incomes. These stores have become hubs of exploration and experimentation.”
“The population in India that is gravitating towards specialty coffee is somewhere around 20-25 million people, but every day new people are making that step with rising disposable incomes,” he explained.
Despite the significantly smaller consumption per capita rates, the Indian market provides immense headroom for growth to brands like Costa.
The CEO noted, “In tea drinking countries like India, the consumption per capita is limited to 20-30 cups a year compared to the global average of 200 cups. India is poised to emerge among the top 10-15 coffee consumption markets over the next decade.”
Schaillee added, “While the brand is looking to consolidate its position in the market, it currently has no plans to expand beyond larger cities. We want to be very disciplined in our growth. We aim to strengthen our presence across the country, with a heavy focus on major cities.”
Costa Coffee sources 100 percent of its coffee from Chikmagalur and Coorg in Karnataka.