Hey there everybody.
Speaker AWelcome back to lead the team.
Speaker ACoffee is culture, commerce and community.
Speaker AAnd this CEO is brewing all three at scale.
Speaker APhilippe 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 AFrom 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 AYou're going to get a story of bold taste and bold leadership.
Speaker APhilippe, welcome to lead the team, sir.
Speaker BThank you, Ben.
Speaker BGreat to be with you.
Speaker AOh, I'm so excited.
Speaker AAnd I love coffee.
Speaker ASo there are so many ways combining coffee and leadership and people leading people across the world.
Speaker ASuch a fun conversation in store today.
Speaker ASo what has been the most defining moment of your career?
Speaker BYeah, 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 BI 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 BYeah, fantastic.
Speaker BWorking in, in New York, working on US brands, conquering the world.
Speaker BSo I was, I was over the moon.
Speaker BA 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 BAnd he said, look, Philip, your big talents got a lot of potential.
Speaker BThis job is, is, is, is, is an example of that.
Speaker BWhat demonstrates that.
Speaker BBut you also have a watch out.
Speaker BYou don't have political sensitivity.
Speaker BYou're a bit like a bull in a china shop.
Speaker BAnd if you're going to continue to do that in that US corporate environment, you may fail.
Speaker BI listened respectfully.
Speaker BOne month later, I was on the plane to New York and all I remembered from that conversation was bleep.
Speaker BYou're a huge doubt.
Speaker BThat was basically my takeaway.
Speaker AThank you for the positive, hopeful feedback, the reinforcing feedback.
Speaker ABut the rest of it.
Speaker AYeah, didn't listen to it.
Speaker BNot so much.
Speaker AWe've all been there.
Speaker BNine 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 BYou're not fitting into our culture.
Speaker BYour disruptive.
Speaker BAnd we're, we're basically going to send you back to Europe because this, this is just not going to work out.
Speaker BSo, huge flow, huge blow.
Speaker BI 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 BAnd 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 BAnd she says, are you absolutely sure that that's the right decision?
Speaker BBecause I remember you telling me that story of your, that device from your mentor.
Speaker BIsn't it maybe something that you also have done?
Speaker BAnd I started reflecting on it and I basically decided, you know what, you may be right, there's probably something to that too.
Speaker BSo 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 BI was accepted to stay.
Speaker BI 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 BWhat 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 BAnd I had come into a huge country where the brands that I was working on were basically challenger brands.
Speaker BAnd 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 BTrade marketing, price management, agile, smart, fast, flexible was a totally different approach.
Speaker BAnd also that I couldn't come in with.
Speaker BI 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 BSo fast forward nine months later I got reinstated into my previous role and actually would expand responsibilities.
Speaker BAnd another nine months later I got promoted into North American VP of Marketing and accelerated my career.
Speaker BBut never, never in the next 25 years forgot about that huge blow and that huge learning, learning experience.
Speaker AWow.
Speaker AI experienced that on so many levels.
Speaker ANumber one, there's this and I'm curious what, what you think about this.
Speaker AThat some people say, well, success can be a terrible teacher.
Speaker AHow does that sit with you from your experience?
Speaker BIt'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 BAnd that sounded like the craziest advice.
Speaker BAnd now I'm using it consistently.
Speaker BAnd 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 AIt'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 AAnd 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 ABut, 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 AAnd 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 AAnd 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 BYeah, absolutely.
Speaker AWhat?
Speaker AThinking it back to that time, you mentioned guerilla marketing, you mentioned how you were in your previous successes.
Speaker AYou 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 ARight.
Speaker AWhat 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 AThat sort of say that, that saved, that saved that role?
Speaker BYeah, I, I think it was, it was a couple of things.
Speaker BOne, I was probably more of an intuitive, instinctive manager and, and marketer before that time.
Speaker BAnd I pivoted to become a very data driven marketer.
Speaker BSo that was, that was one.
Speaker BThe 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 BAnd I pivoted towards, I have everything to learn about the local consumption habits, about how customers act here.
Speaker BSo 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 AHow did that Feel back then going, shifting to a completely different.
Speaker AI mean, it sounds like you had access to those leadership traits, but you weren't.
Speaker AThat wasn't the majority of your day.
Speaker AAnd all of a sudden, you know, you're listening versus telling.
Speaker AIt sounds like, what was that like for you, going through that huge shift in the moment back then?
Speaker BYeah, I don't think it was that counterintuitive for my personality.
Speaker BIt was more to the point that you made earlier.
Speaker BMy first five, six years, I had consistently heard, you're doing great, everything you're touching is working.
Speaker BEvery 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 BAnd 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 AMy 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 AI don't know all their jobs.
Speaker ABut you weren't at the top like you are now.
Speaker AWhat do you do now, being the top executive, to get that kind of feedback?
Speaker ABecause it's so easy.
Speaker AI 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 ASo how do you garner that, that kind of feedback to help you stay sharp?
Speaker BYeah, I've got two approaches to that because I think it's so important.
Speaker BThe first one is I decided probably about six years ago, unprompted, to look for a.
Speaker BA 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 BSo it was an investment that I wanted to make and, and it's, it's helped me tremendously.
Speaker BThe second one is that I will consistently ask my team also for feedback back.
Speaker BIt's very easy as a leader to give feedback to people.
Speaker BIt's harder to actually ask them to give feedback back.
Speaker BIt's not always great to hear it.
Speaker ABut, yeah, yeah, boss, you're doing a great job.
Speaker AOr the reverse, you're not doing a great job.
Speaker AAnd it's like, really like you're the one not doing a great job.
Speaker ANo, I mean, what are you doing to foster that?
Speaker ABecause 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 BSo no, yeah, I'm not asking for.
Speaker BI'm not doing 360s Anonymous 360s or so.
Speaker BI just ask it one to one.
Speaker BAnd I'm doing about three to four times a year we have leadership sessions with my direct reports.
Speaker BAnd it's.
Speaker BAt least half of them are an opportunity for them to give feedback as a team.
Speaker BSo some of them don't feel comfortable to do it and then that's.
Speaker BThat's their right obviously.
Speaker BAnd others are taking the opportunity to do it.
Speaker BThe, 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 BSo that's, that's always a watch out.
Speaker ADo you have an example that you can share with us where someone on your.
Speaker AOn someone that reported to you or lower in the organization even beyond that gave you.
Speaker AGave you something that was helpful and you actioned it in a helpful way.
Speaker AMaybe even if you're like, I don't know about that feedback, but it came out to be pretty helpful.
Speaker BYeah, interesting.
Speaker BNot question I anticipated, but it's a really good one.
Speaker BSo long time ago.
Speaker AI can't stop.
Speaker AI'm just so curious.
Speaker AYeah.
Speaker BI 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 BAnd 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 BSomething that was totally not in my reflection.
Speaker BBut there's one thing that you have to do differently.
Speaker BYou come across as very aloof when you're walking through the hallways.
Speaker BYou're very focused but kind of disconnected from the environment.
Speaker AHmm.
Speaker BAnd I mean, I got two things out of that.
Speaker BOne was maybe I should have that ambition to be a CMO in certainly North America, which I eventually became.
Speaker BAnd the second one was I really have to do something about that.
Speaker BThat may be kind of my.
Speaker BMy normal professional style, but that's just going to be a blocker.
Speaker AWell, I experienced that story on multiple levels.
Speaker AOne is when you're giving feedback, if you're just giving critical feedback, the person may not be open to it.
Speaker ASo right.
Speaker AHe saw a possibility, he decided to pair it with the possibility.
Speaker AAnd it really almost like a reason to give the feedback.
Speaker AHey, I want to give you some feedback because it looks like there's a lot of potential here for you.
Speaker AAnd it sounds like that opened you up in that moment to hearing it.
Speaker AAnd it sounds like it worked out pretty darn well.
Speaker ASo, so cool.
Speaker AAnd if you wouldn't mind sharing, when you interact with your coach, there are a lot of different coaching models and frameworks.
Speaker AWhen you interact with your coach, what is a helpful way that you approach it?
Speaker ABecause for those listeners that don't have a coach.
Speaker ARight.
Speaker AThere's a lot of, a lot of different models to it.
Speaker ADo you sort of guide the conversation?
Speaker ADo 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 BYeah.
Speaker BWell, I would always advise or recommend that you work with a coach who has a certain framework.
Speaker BI struggle more with coaches who are just like almost a shrink.
Speaker BRight.
Speaker BYou're listening and then you're responding.
Speaker BSo this one had a clear framework.
Speaker BLimiting beliefs, empowering beliefs, which I like, which is, I think is simple.
Speaker BYeah.
Speaker BAnd that is always a platform that you can go back to.
Speaker BAnd he would, he would say what he would want to talk about during every, every call and at the same time then also.
Speaker BAnd is there anything else that you would want to, want to do or act on?
Speaker BSo there's always some structure so that it remains very focused.
Speaker AI like that.
Speaker AAnd 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 ALike 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 BIt'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 BSo multiple people had limiting belief that they were not smart enough.
Speaker BAnd 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 BIt makes no sense.
Speaker BIt makes no sense.
Speaker BSo 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 BBecause it's, it's the, it opens the door to addressing it, to working around it, to.
Speaker BAnd I meet so many people, so many leaders who have no clue.
Speaker BI can see, I can almost see it, what their limiting belief is, but they cannot express it themselves.
Speaker AI, 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 ABecause a lot of times you as a leader may know what people need to do or you know how to tackle a challenge.
Speaker AYou can tell them what to do.
Speaker ABut 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 AThere'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 AI really like that.
Speaker AWhen 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 BFirst of all, I've been open about it to my team.
Speaker BYou start with yourself and then that allows them to open up too.
Speaker BYou know, in these types of sessions I will always make sure that I start with has become something automatic.
Speaker BI know when I'm, when my limiting belief is leading me so much, I'm much easier.
Speaker BI've got the coping mechanism almost built in.
Speaker BBut 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 BAnd so it's, it can be as simple as that.
Speaker ASo good for, for me, one of my hacks.
Speaker ASo years ago when I was going to start writing, I realized I didn't really know any authors.
Speaker ALike I, it seemed like impossible to me.
Speaker APeople said, hey, you should take your blog and start writing books.
Speaker AAnd I was like, you got to be kidding me.
Speaker ALike I'm blogging, I'm not writing books.
Speaker ABut a friend of mine is like if you don't know any authors man, you need to go talk to.
Speaker AAnd it by the way, it was remarkably easy to have conversations with number one best selling authors.
Speaker AIt was, it got in touch with, it was Twitter at the time.
Speaker ANow it sucks.
Speaker AAnd I didn't know any New York Times best selling authors.
Speaker AI didn't know number one.
Speaker ABut I, I talked to a lot of them and by the end of it I was like, I can do that.
Speaker AThese are just like relatable people.
Speaker AThey 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 AAnd 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 AAnd I think it's almost like a, like a gentle brainwashing that takes place in terms of what's possible.
Speaker AAnd 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 ABut if you've never had a conversation with a CEO, how do you want to become a CEO?
Speaker AI don't know.
Speaker AFor me, that's been helpful.
Speaker AYou know, one of the things that, that you're known to talk about here is nothing is more engaging than winning.
Speaker AThat's one of the things that, that you're known for.
Speaker AAnd I got a lot of questions around this.
Speaker AHow has that been useful from an engaging standpoint?
Speaker AAnd I'm curious too.
Speaker AOn 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 BYeah, I mean, I've seen both situations.
Speaker BI've come into winning organizations which were not celebrating that success and engagement levels were relatively low.
Speaker BAnd where I started using that phrase, that nothing is more engaging than winning.
Speaker BSo 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 BAnd that drove engagement with underperforming teams.
Speaker BI 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 BSo 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 AYeah, people want to play on the team.
Speaker AThat's winning.
Speaker AAnd 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 ALike, 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 AThat'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 AIs this a focus of your organization to, to help them understand if they're winning or not.
Speaker BTo that point, I, I've.
Speaker BI'm consistently amazed.
Speaker BComing into new companies, organizations or divisions.
Speaker BA little focus there is on communication, internal communication.
Speaker BAnd it's so easy.
Speaker BIt'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 BIt's not, it, it's not harder than that yet.
Speaker BIt's constantly, constantly see that it's, it's not a priority.
Speaker ASo good.
Speaker AI love to boil this down to the barista level, or a barista, as we say, as barista.
Speaker ADo you say barista or barista?
Speaker ABarista, you say.
Speaker AIt sounds much cooler coming from you.
Speaker AHow does a barista know if they're winning or not?
Speaker AAnd you got thousands of baristas, right?
Speaker AI mean, absolutely.
Speaker AThis is a big deal inside your company.
Speaker BYeah, 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 BSo it's, it's our front line for retail business.
Speaker BIt comes down to two things.
Speaker BThe first one is clear scorecard, clear KPIs that are kept simple.
Speaker BI've seen score companies in our field that have scorecards, but they have 61 KPIs and so nobody can follow it.
Speaker BSo you make it simple, measurable, actionable.
Speaker BAnd then two, you, you communicate progress against it.
Speaker BSo 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 BAnd they know where they're winning, where they're performing and where they're falling behind.
Speaker BAnd also how they're performing against their peers.
Speaker BThat's always very, very motivating.
Speaker ASo they're going to walk out of it.
Speaker ASo barista comes in early because that's when the coffee crowd is probably the heaviest.
Speaker AAnd you put it in Europe, afternoon coffee, espresso, huge.
Speaker ABut when they leave work, they're going to know if, if they won today or not based on whatever their performance.
Speaker AYeah, that, that is huge.
Speaker ANow, speaking from a CEO level, when's the last time an interaction with a barista surprised you?
Speaker AOh, you see, you've seen a lot.
Speaker AYou've met a lot of them.
Speaker BI mean, I don't think there's a week, there's probably another week where.
Speaker BWell, first of all, there's another week where I'm not in connection with baristas.
Speaker BLast week I was in the Middle East, Saudi Arabia, uae.
Speaker BA few weeks ago I was in India.
Speaker BI'll be in the uk and every time you go into stores, you meet baristas.
Speaker BIt'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 BSo in the uae last week they had the opportunity to serve us drinks that they had created themselves.
Speaker BSo we were tasting three or four different drinks that were absolutely not in our innovation pipeline.
Speaker BIt was purely what they thought was.
Speaker AInteresting is that because of the culture in the Middle east and how they approach coffee is different.
Speaker ASo they're going to bring a different.
Speaker BApproach 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 BI 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 BWhile 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 BThere may be less going to be pushing for that latest iced ice drink.
Speaker AInteresting.
Speaker AI guess that makes a lot of sense though.
Speaker AWhatever 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 AI think it's pretty bold for them to come in and serve the CEO there.
Speaker ADid you feel pressure?
Speaker ALike, 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 ALike, this is going to be in every cafe we have.
Speaker ALike, how do you, how do you know?
Speaker BI, 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 BAnd 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 AWow, what a win.
Speaker AWhy?
Speaker AAnd, and, and, and a question that I missed that I wanted to ask early on.
Speaker AWhen was the moment that you fell in love with coffee and and why go out?
Speaker ABecause you're.
Speaker AAm I right?
Speaker AThat you're.
Speaker ASo we talked about earlier, the listeners didn't hear it, but you grew up in southern Belgium, is that correct?
Speaker AAm I right?
Speaker BNorthern, Northern parts of Belgium.
Speaker ANorthern Belgium.
Speaker ABelgium, which is not a big or at that time was not big, as caught on coffee as it was tea.
Speaker ACorrect.
Speaker AAm I understanding?
Speaker BNo, no.
Speaker BBelgium is in the top, top 10 in countries in terms of consumption per capita.
Speaker BSo lots of coffee consumed, but not fancy coffees.
Speaker AI'm missing a lot right there.
Speaker AI missed two strikes.
Speaker ABut what was the moment?
Speaker ABecause if you look at your LinkedIn profile, right, you, beverages, coffee top line.
Speaker AI mean, you have been, you have really committed your career in this space.
Speaker AAnd I'm just curious, like, when was the earliest time, like, you know what coffee's for me?
Speaker BYeah, it's, it's, it's interesting.
Speaker BI, I, I think I had my first cup of coffee when I was 10.
Speaker AWasn't espresso, it was.
Speaker BNo, no, no, it was filter coffee.
Speaker BIt, it was at, at the family event and it was kind of, for me, I'm starting to be an adult.
Speaker BI'm belonging to the adult crowd because they're giving me a cup of coffee.
Speaker BSo that was, that was kind of my first exposure to it and I drunk a lot of coffee after that.
Speaker BI think the next trigger was university, which is kind of the pivotal point for many people.
Speaker BWhen people start drinking coffee or increasingly drinking coffee.
Speaker AThat was me.
Speaker AYep.
Speaker BYeah, yeah.
Speaker BSo that's, that's quite, quite kind of generic.
Speaker BI didn't look for a job in coffee.
Speaker BI landed with Sara Lee, which was owning coffee business.
Speaker BBut 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 BThe role that coffee plays with consumers is so important and is only becoming more important.
Speaker BI mean, people are looking.
Speaker BFuel is probably the biggest need state that exists globally and coffee fulfills it in a very natural way.
Speaker BBut more importantly, the emotional warmth that coffee provides to consumers at all levels is critical.
Speaker BIt'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 AWell, in preparing for this interview, I was thinking about the role that coffee plays in my life and that time.
Speaker AAnd I didn't drink coffee until I was probably like a junior in college at University of Alabama.
Speaker AAnd I went to a coffee house and there was a band playing and it was in the evening.
Speaker AAnd 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 AAnd then as I got older, worse, got married, had kids and whatnot, it became much more of a ritual.
Speaker AAnd 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 AThe 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 ABut 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 APeople 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 ASo 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 BNo, I, I mean, absolutely.
Speaker BThere's, there's around coffee, around the coffee ritual.
Speaker BI 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 BAnd in the, in the hectic life that we're all living, that ritual becomes even more important than before.
Speaker AYeah, I love that.
Speaker AMy, my feeling is that some coffee or leaders have lost that a little bit in terms of their vision.
Speaker AAnd I love the fact that, that Costa, it has that as a very central part of it.
Speaker AAnd you know, you can, Listeners can go do their own experience test, right?
Speaker AGo 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 BYeah, yeah.
Speaker BMany coffee companies have forgotten that it is about coffee, first of all.
Speaker BSo they start experimenting with all kinds of other things and they forget that people are coming in in the end for coffee.
Speaker BThat's one too many of our coffee competitors have become very what is it?
Speaker BIt's not stale, but very stark and clean.
Speaker BAnd there's almost no baristas anymore to serve you.
Speaker BThere's no hospitality anymore.
Speaker BSo that that spent that moment, that enabler to create that ritual around coffee is not there anymore.
Speaker BSo it's been fertile ground for us to be very focused on.
Speaker BWe want to turn routines into rituals and provide coffee with heart.
Speaker AI like to shift gears.
Speaker AWe don't have a lot of time left and I've got so many dang questions I don't ever get.
Speaker AWe probably will.
Speaker AWe don't have time to get to them all.
Speaker AI want to list coffee beans, climate change.
Speaker AI'm reading a lot about coffee growers under duress because of climate change, how it's changing availability.
Speaker AAnd we don't always experience that directly, but we're going to experience that.
Speaker AAnd you guys are sort of in the middle of your consumer and the providers.
Speaker AWhat.
Speaker AAnd with all these changes in mind, what is the future of coffee look like globally?
Speaker BI 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 BI think today there is.
Speaker BThat impact is not entirely there.
Speaker BToday 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 BSo 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 BThat is probably the angle that we will have to take.
Speaker AYeah, it sounds like leaders in all industries with the way things are changing.
Speaker AWhat 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 AI 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 BI really something that we need to do in a collaborative way.
Speaker BI mean with the whole coffee industry, it's not one company that should do it.
Speaker BIt's really coffee industry as a whole that has to tackle it collaboratively.
Speaker AGood.
Speaker ABelieve this has been a lot of fun.
Speaker AMaybe we can do this again if you're open to it.
Speaker ABecause I would like to do another one in your cafe in the uk.
Speaker ABe good.
Speaker AOr the Netherlands, wherever you happen.
Speaker ATo be.
Speaker AWith that in mind, though, what's your parting thought that you'd like to try to share with listeners today?
Speaker BParting thoughts?
Speaker BI My parting thought would be come visit us at the Costa store.
Speaker BWe're present in 37 countries, so I'm sure that you will find one close by.
Speaker BAnd it's been an absolute pleasure to be part of the show.
Speaker AThanks, Philippe.