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The Largest and Fastest Growing Coffee Brand in the UK And 34069_CSB_042-043_Costa 12/6/2007 16:00 Page 42 The largest and fastest growing coffee brand in the UK and the leading authentic Italian coffee shop chain (Source: Allegra Strategies 2007), Costa Coffee boasts more than 570 UK stores and 175 overseas. Founded in 1971 by Italian brothers Sergio and Bruno Costa, the chain became part of the Whitbread portfolio in 1995, but retains its Italian charisma, with in-store baristas learning the art of coffee-making at the Costa Coffee Academy. Market The branded coffee shop market has quickly grown to reach a level of maturity in the UK. The market has undergone consolidation in recent years and there are now three main players, Costa Coffee, Starbucks and Caffè Nero, which are facing the challenges of serving good coffee along with meeting an increased demand for healthy drinks and snacks. Costa Coffee is the leading branded coffee shop in the UK, with a 23 per cent share of the sector (Source: Mintel 2007). In real terms, this means it has 25 more stores than Starbucks and 277 more stores than Caffè Nero. Going forward, Costa has publicised its intentions to expand to more than 800 UK outlets by 2010, doubling its past expansion rate. Achievements Costa attributes much of its success to its traditional Italian coffee-making methods, which have provided the brand with a unique difference. More than three decades ago, the traditional Italian drum roaster, making only based at Costa’s own roastery in Lambeth. fledgling business was started using a small batches of coffee each time and using Here, they learn to live by the four ‘M’s: a special espresso blend combining seven ‘Miscela’ (blend) – all Costa’s coffee is made different beans. The beans were roasted using the company’s unique espresso blend, slowly at reduced temperatures to give a Mocha Italia; ‘Macinatura’ (grind) – Costa fuller, less bitter flavour. Both the special coffee is made with beans freshly ground to Mocha Italia espresso blend and the slow exactly the right consistency to ensure the roasting technique are still used today, perfect extraction of the flavours and aroma; continuing to give Costa its distinctive ‘Macchina’ (machine) – specially designed smooth taste. Italian espresso machines, perfected over the A further point of difference for Costa is past 20 years to achieve high volumes of that every in-store barista learns the art of high quality espresso and cappuccino; coffee-making at the Costa Coffee Academy, ‘Mano’ (hand) – the skill of the barista. 1971 1978 1988 1995 1999 Costa is founded by start a wholesale Elida and Yolanda Costa, Coffee production Costa is acquired by The first overseas Costa two Italian brothers, operation supplying the wives of the two moves to larger Whitbread plc in store opens in Dubai. Sergio and Bruno roasted coffee to brothers, open the first premises at Old October, with 41 Costa. Noticing a caterers and specialist Costa store in London Paradise Street, stores nationwide. demand for high- Italian coffee shops in and begin to expand the Lambeth, London. quality roasted coffee and around the UK. business at the rate of beans, the brothers two stores per year. 042 34069_CSB_042-043_Costa 12/6/2007 15:58 Page 43 Extensive training is given on checking and Mocha Italia, an espresso blend that forms bring to life its Italian heritage. Costa controlling the correct dose, grind size, the basis of all of Costa’s coffee options. uses in-store marketing, national press, tamp (pressure) applied to the coffee The third stage is roasting: in their raw form outdoor, retail and media partners, while grounds, extraction time and cleanliness the coffee beans are relatively odourless, also using electronic customer relationship and maintenance of the equipment. tasteless and indigestible, so it’s the roasting management in order to get closer to These distinctive methods have led to process that is all important, drawing out the its customers. Costa winning a series of accolades, aroma and flavour of the bean. In 2006 Costa hosted the first Costa including Best Catering Outlet in Scotland at The fourth and final stage in Costa’s coffee Book Awards (formerly the Whitbread Book the BAA Food & Beverage Awards, Best production process is storage – where the Awards) at Grosvenor House, London. Coffee Shop in the City from Durham Life roasted beans are stored in airtight silos or The chair of judges, Armando Iannucci, Magazine & Durham Council, and Best packaged immediately into bags in bean or announced Stef Penney as the winner with Cafe/Restaurant 2007 awarded by the Dubai ground form. Costa is able to pack its beans her murder mystery ‘The Tenderness of Mall of the Emirates, the largest shopping immediately using a one-way valve that allows Wolves’. The award is one of the most mall in the Middle East. gas to escape without letting air in, meaning prestigious book prizes in the UK, and was Costa’s coffee is always roastery fresh. launched 35 years ago, the same year that Product Costa began trading. In order to serve the best coffee in the true Recent Developments Italian style, Costa owns its entire coffee In 2007 Costa launched a new range of iced Brand Values production process from bean to cup. blended drinks, designed to provide a Costa’s heritage is firmly rooted in serving The first stage involves selecting the best refreshing alternative to hot coffee. The coffee the Italian way, from bean to cup beans, so the roastery team ensures that Frescato range is available in eight flavours – and beyond. Although Costa is market Costa gets only the cream of the world’s from fruity 99 per cent fat free variants to leading, at heart it remains a small Italian coffee crop and when the green (unroasted) creamy indulgent options. family business and is as passionate about beans arrive at the roastery they are tested in Costa has also recently launched a new the welcoming environment it offers order to select those with the best flavour range of muffins across its stores – customers as it is about making good characteristics. customers can expect real fruit pieces, hearty coffee. It is the interaction between the bean The second stage is to create a unique chocolate chunks and crumble toppings. The and Costa people that sets it apart. blend, where six different arabica beans and range is free of hydrogenated fats, but for Costa’s mission remains, to be the best one robusta bean go into creating Costa’s those watching their waistlines, a low fat coffee shop business wherever it trades. option is also available. To make it easier and quicker for customers www.costa.co.uk to grab their coffee on the run, Costa was the first coffee shop chain to introduce the prepaid coffee card (the Costa Card) into the UK. Things you didn’t know about Costa Promotion Costa’s integrated communications strategy Costa’s slow roasting technique takes is designed to drive customer understanding 18 minutes at 230 degrees – compared of Costa’s Italian provenance and the quality to the seven to eight minutes of its of its food and drink, as well as highlighting competitors at 400 degrees. new product innovations. A new creative style was launched in On average Costa opens a new store 2006 for Costa’s food and drink offering to every four days. Costa was the first coffee shop to 2001 2006 2007 introduce the prepaid coffee card into Costa Coffee The Costa Foundation is Also in 2006, Costa Costa overtakes the UK. makes a £1 million founded to implement opens its 500th UK Starbucks as the largest investment in a programmes to improve store, 100th overseas coffee shop brand in Costa was named the fastest growing new roaster at its the social and economic store in Dubai and the UK. and most popular UK coffee shop Lambeth roastery. welfare within the countries expands into India, which Costa sources its Pakistan and China. brand in a national YouGov survey coffee beans from. in 2005. 043.
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