Speaker A

Hey there everybody.

Speaker A

Welcome back to lead the team.

Speaker A

Coffee is culture, commerce and community.

Speaker A

And this CEO is brewing all three at scale.

Speaker A

Philippe Skye, CEO of Costa Coffee, leads the UK's number one coffee brand and the world's second largest coffee house chain with over 4,100 stores across 45 countries and and more than 18,000 employees worldwide.

Speaker A

From one hundred and twelve attempts his company back in the day the the founders from 125 or 112 attempts to perfect a single blend back in 1971 to literally redefining coffee culture worldwide.

Speaker A

You're going to get a story of bold taste and bold leadership.

Speaker A

Philippe, welcome to lead the team, sir.

Speaker B

Thank you, Ben.

Speaker B

Great to be with you.

Speaker A

Oh, I'm so excited.

Speaker A

And I love coffee.

Speaker A

So there are so many ways combining coffee and leadership and people leading people across the world.

Speaker A

Such a fun conversation in store today.

Speaker A

So what has been the most defining moment of your career?

Speaker B

Yeah, you know, it's, it's, it's a story that I keep on telling internally and externally because it's defined me and it was, it was a breakdown I suffered that led to a breakthrough in my career.

Speaker B

I was six years into working in Europe in marketing at Sara Lee Corporation, big US conglomerate, and I got the most coveted job within the company from a marketing perspective, which was moving to New York to become the marketing director on brands like Hills Brothers and Chocolate Nuts, which I'm sure you're familiar with.

Speaker B

Yeah, fantastic.

Speaker B

Working in, in New York, working on US brands, conquering the world.

Speaker B

So I was, I was over the moon.

Speaker B

A month before moving, I had a check in with one of my mentors who was a previous general manager in Belgium and had become a, a regional vice president.

Speaker B

And he said, look, Philip, your big talents got a lot of potential.

Speaker B

This job is, is, is, is, is an example of that.

Speaker B

What demonstrates that.

Speaker B

But you also have a watch out.

Speaker B

You don't have political sensitivity.

Speaker B

You're a bit like a bull in a china shop.

Speaker B

And if you're going to continue to do that in that US corporate environment, you may fail.

Speaker B

I listened respectfully.

Speaker B

One month later, I was on the plane to New York and all I remembered from that conversation was bleep.

Speaker B

You're a huge doubt.

Speaker B

That was basically my takeaway.

Speaker A

Thank you for the positive, hopeful feedback, the reinforcing feedback.

Speaker A

But the rest of it.

Speaker A

Yeah, didn't listen to it.

Speaker B

Not so much.

Speaker A

We've all been there.

Speaker B

Nine months later, I'm sitting in the office in Mamaroneck Avenue, Harrison, New York, and I get A tap on the shoulder from our USHR vp and he basically leads me to a meeting with a USGM who tells me, look Philippe, it's not working.

Speaker B

You're not fitting into our culture.

Speaker B

Your disruptive.

Speaker B

And we're, we're basically going to send you back to Europe because this, this is just not going to work out.

Speaker B

So, huge flow, huge blow.

Speaker B

I go home, I discuss this with my wife and I'm, I'm basically complaining that it's absolutely unacceptable and they're totally wrong and what are they thinking?

Speaker B

And the, yeah, we're going to go home, we're going to go back to Europe and we'll, we'll have to, we'll get this nightmare behind us.

Speaker B

And she says, are you absolutely sure that that's the right decision?

Speaker B

Because I remember you telling me that story of your, that device from your mentor.

Speaker B

Isn't it maybe something that you also have done?

Speaker B

And I started reflecting on it and I basically decided, you know what, you may be right, there's probably something to that too.

Speaker B

So I decided to stick to it, convince them that they should keep me in the US and power through it and take that learning.

Speaker B

I was accepted to stay.

Speaker B

I got demoted, kind of put on a side job and I had to earned my right again to pursue my career in the, in the North American business.

Speaker B

What I learned during that time was that indeed I had come from a, a very strong marketing organization which was market leader in its in, in my home markets.

Speaker B

And I had come into a huge country where the brands that I was working on were basically challenger brands.

Speaker B

And so the recipe for success was not going to be about doing bold big initiatives, very dis of initiatives was actually about being guerilla.

Speaker B

Trade marketing, price management, agile, smart, fast, flexible was a totally different approach.

Speaker B

And also that I couldn't come in with.

Speaker B

I know what coffee is all about, but that I had to be about listening to the US consumer and adjusting what I knew about coffee to the local consumer habits.

Speaker B

So fast forward nine months later I got reinstated into my previous role and actually would expand responsibilities.

Speaker B

And another nine months later I got promoted into North American VP of Marketing and accelerated my career.

Speaker B

But never, never in the next 25 years forgot about that huge blow and that huge learning, learning experience.

Speaker A

Wow.

Speaker A

I experienced that on so many levels.

Speaker A

Number one, there's this and I'm curious what, what you think about this.

Speaker A

That some people say, well, success can be a terrible teacher.

Speaker A

How does that sit with you from your experience?

Speaker B

It's funny, I mean I had a I had a boss at some point early in my career who said he's not ready for the next role because he hasn't had a big failure yet.

Speaker B

And that sounded like the craziest advice.

Speaker B

And now I'm using it consistently.

Speaker B

And I think it's actually good to have a failure early on in your career because it basically is something that you're carrying with you, while if you're exposed to it late in your career, you may not have that agility anymore and that resilience to be able to cope with it.

Speaker A

It's such a wise bit of advice and insight for people who have been on a great trajectory and they feel like they're ready.

Speaker A

And I remember early in my career I had a lot of success and I was thinking to myself, I should clearly be a vice president in this company.

Speaker A

But, but the flip side is, to your point, I haven't, I hadn't really, I didn't, I hadn't pushed it far enough to really have any substantial failures at that point.

Speaker A

And unless you do that and you find your way back or you find your way through it, you don't get to have that wisdom that you can lead others on a bigger level.

Speaker A

And I think it's risky if you've had all this success and you're get being given all these new responsibilities because that first failure that you have could be so huge with so much responsibility that it could really be costly.

Speaker B

Yeah, absolutely.

Speaker A

What?

Speaker A

Thinking it back to that time, you mentioned guerilla marketing, you mentioned how you were in your previous successes.

Speaker A

You were already sort of the top of the top of the market and you came into a market where you were more of like an insurgent brand.

Speaker A

Right.

Speaker A

What did you change about or do you remember anything specific that you changed about your leadership style with your teams and how you interacted with them?

Speaker A

That sort of say that, that saved, that saved that role?

Speaker B

Yeah, I, I think it was, it was a couple of things.

Speaker B

One, I was probably more of an intuitive, instinctive manager and, and marketer before that time.

Speaker B

And I pivoted to become a very data driven marketer.

Speaker B

So that was, that was one.

Speaker B

The second one was I kind of came in with, I know this category better than you and I'll tell you what to do.

Speaker B

And I pivoted towards, I have everything to learn about the local consumption habits, about how customers act here.

Speaker B

So I became much more active listener, absorbing and translating, converting that into actionable strategies than just coming with, this is what we're going to do.

Speaker A

How did that Feel back then going, shifting to a completely different.

Speaker A

I mean, it sounds like you had access to those leadership traits, but you weren't.

Speaker A

That wasn't the majority of your day.

Speaker A

And all of a sudden, you know, you're listening versus telling.

Speaker A

It sounds like, what was that like for you, going through that huge shift in the moment back then?

Speaker B

Yeah, I don't think it was that counterintuitive for my personality.

Speaker B

It was more to the point that you made earlier.

Speaker B

My first five, six years, I had consistently heard, you're doing great, everything you're touching is working.

Speaker B

Every 12 to 18 months I was moving to the next position and it was like, apparently this recipe is working, so I'll just use this Persona forever.

Speaker B

And suddenly it was like, you have to have a couple of other different profiles to show the right level of leadership, depending on the situation.

Speaker A

My impression is you got feedback from people who were above you in the organization or mentors maybe that were further on in their career.

Speaker A

I don't know all their jobs.

Speaker A

But you weren't at the top like you are now.

Speaker A

What do you do now, being the top executive, to get that kind of feedback?

Speaker A

Because it's so easy.

Speaker A

I mean, there aren't a lot of people who, who are going to feel comfortable giving the CEO feedback, like real, honest, blunt feedback that you can do something with.

Speaker A

So how do you garner that, that kind of feedback to help you stay sharp?

Speaker B

Yeah, I've got two approaches to that because I think it's so important.

Speaker B

The first one is I decided probably about six years ago, unprompted, to look for a.

Speaker B

A really good coach because I wanted somebody who understood not only the how, but also the what was close enough to the business and who would challenge me, who I always could use as a sounding board.

Speaker B

So it was an investment that I wanted to make and, and it's, it's helped me tremendously.

Speaker B

The second one is that I will consistently ask my team also for feedback back.

Speaker B

It's very easy as a leader to give feedback to people.

Speaker B

It's harder to actually ask them to give feedback back.

Speaker B

It's not always great to hear it.

Speaker A

But, yeah, yeah, boss, you're doing a great job.

Speaker A

Or the reverse, you're not doing a great job.

Speaker A

And it's like, really like you're the one not doing a great job.

Speaker A

No, I mean, what are you doing to foster that?

Speaker A

Because it can go wrong in so many ways when you ask for feedback from your team, especially if it's not anonymous, and I'm not so sure anonymous Feedback is that good really either.

Speaker B

So no, yeah, I'm not asking for.

Speaker B

I'm not doing 360s Anonymous 360s or so.

Speaker B

I just ask it one to one.

Speaker B

And I'm doing about three to four times a year we have leadership sessions with my direct reports.

Speaker B

And it's.

Speaker B

At least half of them are an opportunity for them to give feedback as a team.

Speaker B

So some of them don't feel comfortable to do it and then that's.

Speaker B

That's their right obviously.

Speaker B

And others are taking the opportunity to do it.

Speaker B

The, the trick is if they see that you're basically dismissing it or you're not doing anything with it, then the next time they will not give you that feedback.

Speaker B

So that's, that's always a watch out.

Speaker A

Do you have an example that you can share with us where someone on your.

Speaker A

On someone that reported to you or lower in the organization even beyond that gave you.

Speaker A

Gave you something that was helpful and you actioned it in a helpful way.

Speaker A

Maybe even if you're like, I don't know about that feedback, but it came out to be pretty helpful.

Speaker B

Yeah, interesting.

Speaker B

Not question I anticipated, but it's a really good one.

Speaker B

So long time ago.

Speaker A

I can't stop.

Speaker A

I'm just so curious.

Speaker A

Yeah.

Speaker B

I was working in the US for Sarah Lee and I was marketing VP on the category vp and I was sitting down with somebody who was working in the insights department, the director.

Speaker B

And he was just giving me spontaneous feedback of I think that you have potential to be a chief Marketing officer one day here in Sarah Lee North America.

Speaker B

Something that was totally not in my reflection.

Speaker B

But there's one thing that you have to do differently.

Speaker B

You come across as very aloof when you're walking through the hallways.

Speaker B

You're very focused but kind of disconnected from the environment.

Speaker A

Hmm.

Speaker B

And I mean, I got two things out of that.

Speaker B

One was maybe I should have that ambition to be a CMO in certainly North America, which I eventually became.

Speaker B

And the second one was I really have to do something about that.

Speaker B

That may be kind of my.

Speaker B

My normal professional style, but that's just going to be a blocker.

Speaker A

Well, I experienced that story on multiple levels.

Speaker A

One is when you're giving feedback, if you're just giving critical feedback, the person may not be open to it.

Speaker A

So right.

Speaker A

He saw a possibility, he decided to pair it with the possibility.

Speaker A

And it really almost like a reason to give the feedback.

Speaker A

Hey, I want to give you some feedback because it looks like there's a lot of potential here for you.

Speaker A

And it sounds like that opened you up in that moment to hearing it.

Speaker A

And it sounds like it worked out pretty darn well.

Speaker A

So, so cool.

Speaker A

And if you wouldn't mind sharing, when you interact with your coach, there are a lot of different coaching models and frameworks.

Speaker A

When you interact with your coach, what is a helpful way that you approach it?

Speaker A

Because for those listeners that don't have a coach.

Speaker A

Right.

Speaker A

There's a lot of, a lot of different models to it.

Speaker A

Do you sort of guide the conversation?

Speaker A

Do you present a challenge that you're facing and then give you feedback, or do you run through scenarios or what's been most useful from that standpoint?

Speaker B

Yeah.

Speaker B

Well, I would always advise or recommend that you work with a coach who has a certain framework.

Speaker B

I struggle more with coaches who are just like almost a shrink.

Speaker B

Right.

Speaker B

You're listening and then you're responding.

Speaker B

So this one had a clear framework.

Speaker B

Limiting beliefs, empowering beliefs, which I like, which is, I think is simple.

Speaker B

Yeah.

Speaker B

And that is always a platform that you can go back to.

Speaker B

And he would, he would say what he would want to talk about during every, every call and at the same time then also.

Speaker B

And is there anything else that you would want to, want to do or act on?

Speaker B

So there's always some structure so that it remains very focused.

Speaker A

I like that.

Speaker A

And when you think about limiting beliefs that you see in the world or for yourself or have experienced, is there one that you see?

Speaker A

Like if, if we can tackle that or you can tackle that one limiting belief that emerges, it unlocks a lot of empowerment on the other side of it.

Speaker B

It's funny, I, I was doing a high performing team workshop with, with my exec team at Costa and there were multiple people who were, I mean, everybody kind of knows the limiting belief framework.

Speaker B

So multiple people had limiting belief that they were not smart enough.

Speaker B

And my reflection was, if such intelligent people have a limiting belief that they're not smart enough, what was must people who are maybe not that intelligent then have as a limiting belief?

Speaker B

It makes no sense.

Speaker B

It makes no sense.

Speaker B

So I don't know what the solution solution is to it, but the solution is basically knowing it, investing in understanding what your limiting belief is.

Speaker B

Because it's, it's the, it opens the door to addressing it, to working around it, to.

Speaker B

And I meet so many people, so many leaders who have no clue.

Speaker B

I can see, I can almost see it, what their limiting belief is, but they cannot express it themselves.

Speaker A

I, I love the idea of executives and their leaders understanding like the mindset of their team, how their teams Think and then helping them grow through that.

Speaker A

Because a lot of times you as a leader may know what people need to do or you know how to tackle a challenge.

Speaker A

You can tell them what to do.

Speaker A

But when you can sort of unhinge that limiting belief, they're able to go tackle themselves or they're more curious, or they're more aggressive, or they take bolder risk, mitigated risk to, to make bigger things happen.

Speaker A

There's just so much more about that we can offer our teams if we challenge how they think and help them grow through that and ourselves.

Speaker A

I really like that.

Speaker A

When you have a limiting belief that emerges, is there a certain action you like to take to get on the other side of it or which, what sort of, what's been a successful way to tackle it for you or maybe even working with your team?

Speaker B

First of all, I've been open about it to my team.

Speaker B

You start with yourself and then that allows them to open up too.

Speaker B

You know, in these types of sessions I will always make sure that I start with has become something automatic.

Speaker B

I know when I'm, when my limiting belief is leading me so much, I'm much easier.

Speaker B

I've got the coping mechanism almost built in.

Speaker B

But early on when I was confronted with it and struggling with it much more, I had this little sticker on my laptop which was telling me my empowering belief so that would always be reminded of it.

Speaker B

And so it's, it can be as simple as that.

Speaker A

So good for, for me, one of my hacks.

Speaker A

So years ago when I was going to start writing, I realized I didn't really know any authors.

Speaker A

Like I, it seemed like impossible to me.

Speaker A

People said, hey, you should take your blog and start writing books.

Speaker A

And I was like, you got to be kidding me.

Speaker A

Like I'm blogging, I'm not writing books.

Speaker A

But a friend of mine is like if you don't know any authors man, you need to go talk to.

Speaker A

And it by the way, it was remarkably easy to have conversations with number one best selling authors.

Speaker A

It was, it got in touch with, it was Twitter at the time.

Speaker A

Now it sucks.

Speaker A

And I didn't know any New York Times best selling authors.

Speaker A

I didn't know number one.

Speaker A

But I, I talked to a lot of them and by the end of it I was like, I can do that.

Speaker A

These are just like relatable people.

Speaker A

They taught me a few things on the way, had some conversations specifically shout out to Chris Brogan who helped me along with there and then there I go.

Speaker A

And the same thing with podcasting I was saying, like, get, getting to know people who had tackled those things or become things that, that I was interested in, help me tackle them.

Speaker A

And I think it's almost like a, like a gentle brainwashing that takes place in terms of what's possible.

Speaker A

And I suspect for you and your mentors and other C suite leaders, I mean, if you know CEOs in your field and you hang out with them, you might start thinking, hey, yeah, I can do that.

Speaker A

But if you've never had a conversation with a CEO, how do you want to become a CEO?

Speaker A

I don't know.

Speaker A

For me, that's been helpful.

Speaker A

You know, one of the things that, that you're known to talk about here is nothing is more engaging than winning.

Speaker A

That's one of the things that, that you're known for.

Speaker A

And I got a lot of questions around this.

Speaker A

How has that been useful from an engaging standpoint?

Speaker A

And I'm curious too.

Speaker A

On the flip side of the coin, when the team is not winning, how to, how do you engage them in, in the mission that you're working towards as a leader?

Speaker B

Yeah, I mean, I've seen both situations.

Speaker B

I've come into winning organizations which were not celebrating that success and engagement levels were relatively low.

Speaker B

And where I started using that phrase, that nothing is more engaging than winning.

Speaker B

So we started focusing on the, on the recognition of the whole team of that success and celebrating it and communicating it to the lowest level of the organization.

Speaker B

And that drove engagement with underperforming teams.

Speaker B

I oftentimes those underperforming teams were focusing a lot on engagement initiatives, but I basically converted that narrative towards let's start winning and we will drive engagement through it.

Speaker B

So it becomes the focus on performance, the focus on continuous growth, the focus on continuous improvement becomes the engagement driver rather than an HR strategy, a separate HR strategy about engagements which will not succeed because if the performance is not there, it's going to be very hard to have an engaged organization.

Speaker A

Yeah, people want to play on the team.

Speaker A

That's winning.

Speaker A

And one of the things I think about is too, from what you just said, how many teams out there don't know if they're winning or not?

Speaker A

Like, if they're just going about their day, doing their job and like, well, winning is just like getting my paycheck or winning is just, you know, not getting fired.

Speaker A

That's not like, I, I think, like I, I, it drives me back or makes me think about, like, having a good scoreboard or helping them understand where they're at.

Speaker A

Is this a focus of your organization to, to help them understand if they're winning or not.

Speaker B

To that point, I, I've.

Speaker B

I'm consistently amazed.

Speaker B

Coming into new companies, organizations or divisions.

Speaker B

A little focus there is on communication, internal communication.

Speaker B

And it's so easy.

Speaker B

It's a superpower once you start actually clearly communicating throughout the organization, what the point of departure is, what the strategy is, the small green shoots that you're seeing as the business is improving in terms of performance, you just get people engaged.

Speaker B

It's not, it, it's not harder than that yet.

Speaker B

It's constantly, constantly see that it's, it's not a priority.

Speaker A

So good.

Speaker A

I love to boil this down to the barista level, or a barista, as we say, as barista.

Speaker A

Do you say barista or barista?

Speaker A

Barista, you say.

Speaker A

It sounds much cooler coming from you.

Speaker A

How does a barista know if they're winning or not?

Speaker A

And you got thousands of baristas, right?

Speaker A

I mean, absolutely.

Speaker A

This is a big deal inside your company.

Speaker B

Yeah, we have, we have over 15, 000 baristas internally, and then through our franchise partners, probably double, at least another, another 7,000 or so.

Speaker B

So it's, it's our front line for retail business.

Speaker B

It comes down to two things.

Speaker B

The first one is clear scorecard, clear KPIs that are kept simple.

Speaker B

I've seen score companies in our field that have scorecards, but they have 61 KPIs and so nobody can follow it.

Speaker B

So you make it simple, measurable, actionable.

Speaker B

And then two, you, you communicate progress against it.

Speaker B

So it's again, consistent communication to that level of the organization so that the store managers, assistant store managers, baristas, know exactly what is expected from them.

Speaker B

And they know where they're winning, where they're performing and where they're falling behind.

Speaker B

And also how they're performing against their peers.

Speaker B

That's always very, very motivating.

Speaker A

So they're going to walk out of it.

Speaker A

So barista comes in early because that's when the coffee crowd is probably the heaviest.

Speaker A

And you put it in Europe, afternoon coffee, espresso, huge.

Speaker A

But when they leave work, they're going to know if, if they won today or not based on whatever their performance.

Speaker A

Yeah, that, that is huge.

Speaker A

Now, speaking from a CEO level, when's the last time an interaction with a barista surprised you?

Speaker A

Oh, you see, you've seen a lot.

Speaker A

You've met a lot of them.

Speaker B

I mean, I don't think there's a week, there's probably another week where.

Speaker B

Well, first of all, there's another week where I'm not in connection with baristas.

Speaker B

Last week I was in the Middle East, Saudi Arabia, uae.

Speaker B

A few weeks ago I was in India.

Speaker B

I'll be in the uk and every time you go into stores, you meet baristas.

Speaker B

It's super engaging for me and inspiring to actually engage with them because they're all super motivated, but there's also always a nugget that remains as you're connecting with them.

Speaker B

So in the uae last week they had the opportunity to serve us drinks that they had created themselves.

Speaker B

So we were tasting three or four different drinks that were absolutely not in our innovation pipeline.

Speaker B

It was purely what they thought was.

Speaker A

Interesting is that because of the culture in the Middle east and how they approach coffee is different.

Speaker A

So they're going to bring a different.

Speaker B

Approach or we, we definitely see that in, in the Middle east and especially in the uae, there's where, which is the market where our international market where, where Costa has been present for the longest period of time since 1999.

Speaker B

I believe that they're so experienced and they're so exposed to warm weather that certainly on cold beverages they always, they're exposed to requirements, demands from their customers that triggers new ideas.

Speaker B

While in the UK we have much more, we have a bit of an older, older audience who is coming in to get their lattes, their cappuccinos, their, their flat whites.

Speaker B

There may be less going to be pushing for that latest iced ice drink.

Speaker A

Interesting.

Speaker A

I guess that makes a lot of sense though.

Speaker A

Whatever the, the vibe, the temperature, the culture your baristas are in, they're going to find their inspiration from their customers and that's going to lead to innovation.

Speaker A

I think it's pretty bold for them to come in and serve the CEO there.

Speaker A

Did you feel pressure?

Speaker A

Like, okay, I like, I don't want to crush them if I don't like their drink, but I also don't want to act overly exuberant.

Speaker A

Like, this is going to be in every cafe we have.

Speaker A

Like, how do you, how do you know?

Speaker B

I, I, I think for them the, the, the, the rewarding element was that they had, they, they got the visibility and the opportunity to share their thoughts.

Speaker B

And obviously we were always positive in our feedback, but without making any commitments, I think there was at least one drink where we like, this is definitely something that we need to take further.

Speaker A

Wow, what a win.

Speaker A

Why?

Speaker A

And, and, and, and a question that I missed that I wanted to ask early on.

Speaker A

When was the moment that you fell in love with coffee and and why go out?

Speaker A

Because you're.

Speaker A

Am I right?

Speaker A

That you're.

Speaker A

So we talked about earlier, the listeners didn't hear it, but you grew up in southern Belgium, is that correct?

Speaker A

Am I right?

Speaker B

Northern, Northern parts of Belgium.

Speaker A

Northern Belgium.

Speaker A

Belgium, which is not a big or at that time was not big, as caught on coffee as it was tea.

Speaker A

Correct.

Speaker A

Am I understanding?

Speaker B

No, no.

Speaker B

Belgium is in the top, top 10 in countries in terms of consumption per capita.

Speaker B

So lots of coffee consumed, but not fancy coffees.

Speaker A

I'm missing a lot right there.

Speaker A

I missed two strikes.

Speaker A

But what was the moment?

Speaker A

Because if you look at your LinkedIn profile, right, you, beverages, coffee top line.

Speaker A

I mean, you have been, you have really committed your career in this space.

Speaker A

And I'm just curious, like, when was the earliest time, like, you know what coffee's for me?

Speaker B

Yeah, it's, it's, it's interesting.

Speaker B

I, I, I think I had my first cup of coffee when I was 10.

Speaker A

Wasn't espresso, it was.

Speaker B

No, no, no, it was filter coffee.

Speaker B

It, it was at, at the family event and it was kind of, for me, I'm starting to be an adult.

Speaker B

I'm belonging to the adult crowd because they're giving me a cup of coffee.

Speaker B

So that was, that was kind of my first exposure to it and I drunk a lot of coffee after that.

Speaker B

I think the next trigger was university, which is kind of the pivotal point for many people.

Speaker B

When people start drinking coffee or increasingly drinking coffee.

Speaker A

That was me.

Speaker A

Yep.

Speaker B

Yeah, yeah.

Speaker B

So that's, that's quite, quite kind of generic.

Speaker B

I didn't look for a job in coffee.

Speaker B

I landed with Sara Lee, which was owning coffee business.

Speaker B

But I think once I became a marketer on the coffee category, the fact that coffee plays this role of physical energy and emotional warmth really struck with me.

Speaker B

The role that coffee plays with consumers is so important and is only becoming more important.

Speaker B

I mean, people are looking.

Speaker B

Fuel is probably the biggest need state that exists globally and coffee fulfills it in a very natural way.

Speaker B

But more importantly, the emotional warmth that coffee provides to consumers at all levels is critical.

Speaker B

It's something that, especially with Costa, increasingly we're playing into because that little moment of getting coffee in a Costa store that our baristas make with heart is really special.

Speaker A

Well, in preparing for this interview, I was thinking about the role that coffee plays in my life and that time.

Speaker A

And I didn't drink coffee until I was probably like a junior in college at University of Alabama.

Speaker A

And I went to a coffee house and there was a band playing and it was in the evening.

Speaker A

And you can imagine what happened when I had coffee for the first time and it was nighttime that I would, I felt like, I mean, it, it really gave me a lot of energy and I was, I was up a long time, but I had it in a coffee house in a community situation and it really formed my early take on coffee.

Speaker A

And then as I got older, worse, got married, had kids and whatnot, it became much more of a ritual.

Speaker A

And I see this play off at so many business meetings over coffee and there's just not another beverage or another place that this happens.

Speaker A

The only other place complimentary would be a bar, but then there's alcohol involved and that seems to change the experience a little bit and, and the outcomes and whatnot sometimes from that.

Speaker A

But this, this coffee culture I think is a place where not to be hyperbolic about it, but world disputes, family disputes, all these things, people seem to be more clear headed in the morning than they are in the evening.

Speaker A

People don't usually get in a fight after they have a cup of coffee, but they might get in a fight after they have a few beers.

Speaker A

So thinking about how this, this takes place and you guys are providing the location for all these meetings, all these gatherings, how does it hit you when, when I share that with you, does that play in your, your leadership vision?

Speaker B

No, I, I mean, absolutely.

Speaker B

There's, there's around coffee, around the coffee ritual.

Speaker B

I mean, we often say that Costa, that we like to turn coffee routines into coffee rituals because when it becomes a ritual, when a group of friends come together, always around a cup of Costa, when somebody, a dog owner goes sit into a Costa store and has that moment of relaxation with his or her dog, just relaxation, reflecting, those are truly special moments.

Speaker B

And in the, in the hectic life that we're all living, that ritual becomes even more important than before.

Speaker A

Yeah, I love that.

Speaker A

My, my feeling is that some coffee or leaders have lost that a little bit in terms of their vision.

Speaker A

And I love the fact that, that Costa, it has that as a very central part of it.

Speaker A

And you know, you can, Listeners can go do their own experience test, right?

Speaker A

Go to Costa, go to others and see if you're walking into a place where you can have your daily ritual or if you're walking in and it feels like a disco and it's insane and people are running around, you know, it's a different vibe.

Speaker B

Yeah, yeah.

Speaker B

Many coffee companies have forgotten that it is about coffee, first of all.

Speaker B

So they start experimenting with all kinds of other things and they forget that people are coming in in the end for coffee.

Speaker B

That's one too many of our coffee competitors have become very what is it?

Speaker B

It's not stale, but very stark and clean.

Speaker B

And there's almost no baristas anymore to serve you.

Speaker B

There's no hospitality anymore.

Speaker B

So that that spent that moment, that enabler to create that ritual around coffee is not there anymore.

Speaker B

So it's been fertile ground for us to be very focused on.

Speaker B

We want to turn routines into rituals and provide coffee with heart.

Speaker A

I like to shift gears.

Speaker A

We don't have a lot of time left and I've got so many dang questions I don't ever get.

Speaker A

We probably will.

Speaker A

We don't have time to get to them all.

Speaker A

I want to list coffee beans, climate change.

Speaker A

I'm reading a lot about coffee growers under duress because of climate change, how it's changing availability.

Speaker A

And we don't always experience that directly, but we're going to experience that.

Speaker A

And you guys are sort of in the middle of your consumer and the providers.

Speaker A

What.

Speaker A

And with all these changes in mind, what is the future of coffee look like globally?

Speaker B

I mean there's a question and a relevant question about the impact of climate change on the supply and the harvesting and the supply of coffee.

Speaker B

I think today there is.

Speaker B

That impact is not entirely there.

Speaker B

Today we're seeing the highest possible green bean coffee prices, but that's much more an effect of harvests that haven't fully succeeded and then very high demand.

Speaker B

So we actively have to work with coffee growing countries on how to make sure that coffee beans, coffee plants become more protective against climate change, more resistant to climate change.

Speaker B

That is probably the angle that we will have to take.

Speaker A

Yeah, it sounds like leaders in all industries with the way things are changing.

Speaker A

What strikes me is being a leader who's willing to provide leadership to other parts of your supply chain that you rely on and get involved.

Speaker A

I don't know if you're involved with the coffee growers and coffee bean growers and whatnot, but I suspect being close to that is where leadership has to go eventually.

Speaker B

I really something that we need to do in a collaborative way.

Speaker B

I mean with the whole coffee industry, it's not one company that should do it.

Speaker B

It's really coffee industry as a whole that has to tackle it collaboratively.

Speaker A

Good.

Speaker A

Believe this has been a lot of fun.

Speaker A

Maybe we can do this again if you're open to it.

Speaker A

Because I would like to do another one in your cafe in the uk.

Speaker A

Be good.

Speaker A

Or the Netherlands, wherever you happen.

Speaker A

To be.

Speaker A

With that in mind, though, what's your parting thought that you'd like to try to share with listeners today?

Speaker B

Parting thoughts?

Speaker B

I My parting thought would be come visit us at the Costa store.

Speaker B

We're present in 37 countries, so I'm sure that you will find one close by.

Speaker B

And it's been an absolute pleasure to be part of the show.

Speaker A

Thanks, Philippe.