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Philippe Schaillee
Chief Executive Officer, Costa Coffee (Costa Ltd.)

Podcast: Own Your Approach with Philippe Schaillee

🎥 Oct 04, 2024 📺 Breakthrough Global ⏱ 28m 👁 297 views
Listen to our new podcast episode where we explore failure, leadership styles, and growth with Philippe Schaillee, CEO of Costa Coffee. Philippe brings a wealth of experience from his high-profile roles at Groupe SEB, Jacobs Douwe Egberts Peets (JDEP), and Sara Lee, where he led significant initiatives in marketing, strategy, and business development across Europe and the U.S. Find out more about Philippe Schaillee here at   / philippe-schaillee-40196b1   In this episode, we explore these 3 lessons with Philippe:⠀ 1. The Power of Failure 2. Build An Approach That’s Yours 3. Growth Thrives o...
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About Philippe Schaillee

Philippe Schaillee, Global CEO of Costa Coffee, discussed the company's strategy in India during a May 2025 interview. He stated that green coffee prices are at historically high levels, with both Arabica and Robusta peaking, and noted that Costa has reflected these costs into its prices. Schaillee said the company is not focused on gaining market share in India's relatively small premium coffee segment, but rather on convincing consumers to drink premium coffee more frequently away from home while continuing to drink tea. He added that Costa plans to open 40 to 50 stores annually in India in collaboration with its partner Devani, prioritizing quality over quantity. In a separate October 2024 podcast, Schaillee discussed his leadership philosophy. He said he conveys principles of integrity, accountability, discipline, simplicity, and teamwork from day one with new teams. He described the importance of showing vulnerability as a leader, citing a past failure when he moved to the U.S. as marketing director and his initial approach was not suited to the situation. Schaillee also stated that his objective is to have an executive team that represents Costa's global consumer base, including different geographies and genders, rather than a "100% UK male pale and stale" team.

Source: AI-verified profile updated from Philippe Schaillee's recent appearances. Browse all interviews →

Transcript (30 segments)
Z
Zanor Rabic0:10
Hi and welcome back to Three Lessons from Breakthrough Leaders with me, Zanor Rabic, CEO at Breakthrough Global. I'm here again with Dr. Bartel. Hello everyone. And this podcast is all about giving you insider tips and the know-how from the world's foremost leaders and creative talents, distilling their knowledge and experience into three lessons which we guarantee will help you and your companies to unleash your potential. Today we are absolutely delighted to welcome Philippe Schaillee. And I'm delighted because I've known Philippe now for several years. We worked together first when he was at JDE, and I must say we were slightly skeptical of our approach, and luckily we won him over. And now we're working with him, of course, as the CEO of Costa Coffee. He is an inspirational leader, he is very clear, he is very concise. He knows about the purpose, he knows the importance of that when building an organization, and he also really understands the value of people in driving change and in driving results. So Philippe, welcome to the show today. Thank you.
P
Philippe Schaillee1:14
Great to be with you. Hello, Bart. It's good to see you.
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Bart1:16
So, Philippe, kind of the big one to start with. If we think back around your incredible career, what inspired you to actually start on this journey and to get into the world of business as you are now?
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Philippe Schaillee1:30
Yeah, I think it was very similar to many other kids. I had a dad who had an international career who started in marketing, and looking up at his accomplishments, I wanted to follow in his footsteps. There were three things early on that were clear in my aspiration. One, I wanted to go into marketing in FMCG. Two, I saw general management as a career ambition. And three, I wanted it to be international. I looked at my dad traveling around the world and I was like, I want to do that too. You know, you're inspired by your parents.
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Bart2:12
Lesson one: The Power of Failure.
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Philippe Schaillee2:16
You mentioned your dad, and he was a great influence on you. What are some of the things you can tell us about what you learned from him? Often times you learn most from failure, right? I saw my dad being very successful in his career progression, but also at a certain moment be confronted with a company that he was working for where he had just become general manager go bankrupt, totally outside of his control. And just observing how he had to absorb the stress and communicate to his family with serenity, and the energy and the belief and the confidence that he would be able to overcome that is certainly something that has marked me and that allowed me early on in my career also to be able to adopt and absorb some challenging situations.
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Bart3:15
And who else do you think has been a big influence? So clearly your father, were there other important key mentors or leaders along the way that you thought, wow, I really love the way that you've done that, I wish I could emulate that one day? Or maybe somewhere you thought, hey, that's definitely not the way to do this, and I'm going to learn that I'll do it a different way.
P
Philippe Schaillee3:34
I've been super lucky. I've obviously had mentors who really believed in me at different stages of my career, and I've learned a lot from Adrian Nunn, who was the CEO of Sara Lee Coffee and Tea. A second one was kind of a duo with the CEO and the COO of Sara Lee North America, CJ Fry and Monty Pulley. And the last one is somebody that you both also know very well, the first CEO of JDE, Pierre LS. Super inspiring, smart, intelligent leader who was incredibly gracious in sharing his wisdom. And the shameless plug for that, of course, is that you can listen to Pierre's podcast as well, Lessons from Indeed.
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Bart4:23
Indeed, indeed, it's a great episode actually, and we love talking with him. Philippe, I'd like to stay with young Philippe. Not that you're still young, but you know, I look back in my life and if I was to look at the first experience I had of being a leader, although I never ever would have called it that then, I was in the Boy Scouts. And of course we had a scout master, scout leader, but then I was put in charge of one of the patrols. And I can still remember, we went on this month's camp, and that's where I really started to experience what it was like where people actually started depending on you. And I was just wondering, if you look back through your lifeline, what were the early experiences you had which now you could say, yeah, they were the start of me experiencing leadership?
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Philippe Schaillee5:26
It always becomes linear when you look back, but it isn't when you start. It's funny, when I was a kid, all the kids, I mean we would be playing football or tennis or whatever, building camps. But then there was this one kid who decided that we would organize this whole Olympics over multiple days, and everybody would join, and they would be looking up to me leading that. And then fast forward 10, 12, 13 years later, as a student, I wasn't necessarily looking for it, but people would ask me, propose me to become the president of a Student Association that was founded. And I did it for a year and I loved it. And the year after, I was looking for a successor, and they basically tried to convince me to do the second year in a row. And so I just rolled into it. And probably at that stage started to realize this is something that I like, and apparently people think that I'm pretty good at it, so maybe I have to do something with it.
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Bart6:34
And thinking about what you were describing before, you know, it looks linear looking back but it's not always so linear. On the journey, what have been the sort of most defining moments of your career? Maybe some of the amazing successes, but also some of the failures, because as you also believe, you know, we learn the most from our failures. So what have those been? Can you kind of pinpoint them?
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Philippe Schaillee6:56
Yeah, absolutely. I'd start with a failure, and oftentimes people are surprised because you start with that. I think as a leader it's important to show vulnerability. This failure actually happened when I got that job to move to the US as marketing director based in New York, the dream job of every marketer working for Sara Lee at the time. Just before leaving, I had a conversation with one of my other mentors, a gentleman called Christian Vine H, who told me, 'You know what, Philippe, I'm absolutely a believer that you're going to be super successful, but I also give it a 50% chance that you're going to be a total failure your first year.' Wow, that's a surprise. So he explained: you still have to learn to become politically agile in a bigger organization, you're a big idea guy but you haven't worked in a tough environment where every little detail works, so I have to see how you're going to adapt into this environment where you're not going to be working for a company that is market leader but where you're going to be a challenger in a huge market like the US. I said okay, I got it, good advice. I got on that plane to the US and all I heard in my head was 'you're going to be super successful.' I totally forgot about the other advice. And six months into the job, I was failing. Because I came in with my recipe of leadership or leader brands, and I was working on small brands against very big competitors, and my recipe for success was not attuned to that new situation. On top of that, I was burning bridges because I was not very politically sensitive. The defining moment became when I basically mentally told myself, 'I'm done with this, I'm just going to go back to Europe. They're not understanding how I work, they're not doing the right things, I am right.' And where my wife was basically telling me, 'Seriously, I remember that feedback you got. Are you sure that there's no opportunity for you to adjust?' And I did, I adjusted, and it got me back on track, and it became foundational for my future career. So I'm very happy about that. I think a second defining moment was indeed when those two American gentlemen, CJ and Monty, gave me that opportunity to step out of my comfort zone in coffee and step into all of these other categories. And it just pushed me up so much in my career to the next level. And then I think the last one is between a success and a failure, it's an environmental failure, which was when I was at JDE leading the away-from-home professional coffee business, and you had COVID hitting, and of course an away-from-home business gets heavily impacted by this. You're confronted with the sky falling, your business goes down by 70-80% from one week to the other, and you get a lot of pressure to basically take shortcuts, to do things that are maybe not 100% in line with the values that you have. I think there the defining moment for me was to make a decision that I would always have people's best interests, the organization's and our associates' first of all in mind, even though that would mean that you would have to lay off people, but always doing that in a very respectful way, because that's the right thing to do. And always finding that right balance is something that has been pivotal for me also in the rest of my career.
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Bart11:12
That really is the power of failure, as I call it, for me in my business career. Certainly, you know, I was in the corporate world, and then the first business I started after that we went bankrupt within about 9 months. And I can remember I was devastated at first. I'd never really had a failure, certainly in business I hadn't. But now when I look back on that, that's one of the most amazing growth experiences I've ever had. And it was after that that I started Breakthrough. And like Philippe, I know that whatever happens, I'll be resilient to get through it. What it makes me think as well is that failure is such a loaded word. You know, people fear failure, I think because it is so loaded. When really, when I look back at what I just called a failure, it wasn't me that failed. Something failed, the business failed, but I didn't fail. And I think if I'd have come out of that with the interpretation that I had failed, then I wouldn't have got the benefits from it. I would probably still be fearing anything that comes close to failure. But what I did realize is that it wasn't me that was failing, it was something else. And all I had to do is learn from it and act on it. So ask yourself: where have you failed? What have been your big keystone failures? Maybe it was professional, maybe it was personal. And what have you been able to learn from them? How have you grown, how have you developed, and how have you ensured your resilience in the face of further failures in the future as a result of your learnings from those keystone experiences?
Experiences. Lesson two: Build an approach that's yours. What are some of the things now that you consciously want to impart to other people in our audience? We've got leaders listening, and we've also got young up-and-coming leaders who really are looking for experience, they're looking for mentors themselves, they're looking for how they can progress and how they can develop. With the people that you work with, what are the things that you want to impart to them?
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Philippe Schaillee13:47
Yeah, I think there are a couple of things. First of all, I'm pretty consistent in the leadership principles that I convey to every team that I work with, and I do it from day one. It starts with integrity. There's just no shortcuts. It's followed by accountability, personal individual accountability. Discipline is really important to me. Simplicity, which is something that people are always a bit surprised by, but it's just so much easier when simplicity is a core value. And then of course teamwork. I combine that with this saying, and I would never have thought that I would use this person as a benchmark for a quote, Dwayne Johnson, The Rock, who said, 'Always, always, always be the hardest person working in the room.' But I think it's so true. There's just no shortcuts from that perspective. And then the last thing was making the analogy between building a brand, building leadership brands, and building your own leadership brand. I'm a true believer that there is this opportunity to define who you are standing for, what your purpose is, and what your positioning is, and based on that build your career path. But always stay very close to that personal leadership brand identity that you have built.
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Bart15:19
What are some of the other principles? So you've described some. Are there any other important principles that we could learn from you? I know that we've covered a few previously. Is there anything else?
P
Philippe Schaillee15:30
I think everybody learns at some point after 20, 30 years of career you start building an approach that is yours. I don't know if this is the case for everybody. You probably have people who are really good at startups and scale-ups, and you have people who are really good at high growth smaller companies, or are probably been most confronted with turnaround jobs. And so I built my model. It's not rocket science, but it has a couple of elements that always come back. First element is just always knowing where you are before you decide where you go. It's fundamental knowing your point of departure. And within that, it's funny, in every company where I come in, it's always a bit of an aha moment or ooh moment when you confront them with that quote from Edwards Deming: 'In God we trust, all others must bring data.' It's like, oh okay, makes sense, but that's not necessarily how we were working. So just being so factual and so data-driven in the diagnostic understanding the point of departure before running and rushing into all kinds of directions. That's number one. Number two is always starting with first fixing the fundamentals. Great quote from Pierre: 'First better than bigger.' I've reused it many times, and it's always resonating with the audience. It's funny enough, usually something that they've never heard before, but they immediately connect with it, and it becomes just a mantra: let's make sure that we first fix the fundamentals. And then as you've built that foundation and you want to accelerate, what I call building better and bigger, just not forgetting what those fundamentals are while you're accelerating the business. It's so easy to start growing again and then having to redo the turnaround and rebuilding the fundamentals. And finally, while you're so strongly focused on that growth, not forgetting to build a high-performing, engaged, and winning team. It's the biggest foundation of success, of structural success. And I'm always absolutely obsessed by it.
B
Bart17:56
It's one of the factors contributing into Philippe's success over the years. Over that time, he's been building an approach which he can now say is his approach. And he's fashioned this from his experience, from lessons he's learned from his mentors, from his failures as we talked about. But now he's very clear that he has an approach. So whatever assignment, a new assignment he goes to, he can bring in this tested methodology that he knows will work. So ask yourself: what is your approach? What's going to guarantee success for you as you go forward?
Forward. Lesson three: Growth thrives on balance. So I'm thinking as well, Philippe, back to the beginning of this conversation and you being inspired by your dad internationally traveling, and of course you now are on the road an enormous amount of the year, right? So how do you maintain a balance within that? Because you're working extremely hard, you're working really hard to deliver results, you're also thinking about the people in your organization at the same time. How do you recharge? How do you manage your energy? And actually, the thing I always love to find out from people such as yourself is a bit of a specific one: what are your tips for international travel that mean that you can get off the other end of a 12-hour flight and go and do that meeting and be okay? Because most mortals can't do it.
P
Philippe Schaillee19:29
Yeah, I mean the first thing is my weekends, my holidays are really for family, friends, social life. So it's disconnecting for the longest period of time. I thought that I could do both, so during weekends, during holidays, I could of course check those emails, and it's really not having an impact until I didn't for a couple of days or for a week, and I just realize how much more you're just re-energizing, truly really having that mental disconnect. So the biggest thing to create balance for me is my family, my friends, my social life. I think the second thing is sports. Funny enough, the longer my career has been, the more I get obsessed with making sure that I have my four or five days of sports in for the week, because the more it's becoming important to be able to absorb the business intensity. And then other than that, it's just finding the time to read, relaxing, it takes your mind off things, and in combination with listening to music. I think that's probably it.
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Bart20:43
So if I brought that back to leadership, do you encourage your people to do similar things, to actually take weekends as a break? Because I've known leaders who actually demand attention at any time around the clock over weekends and so on. And you know, I'm thinking of one now, and basically the whole culture was affected by their behavior. And so your behavior is such a great model and such a great role model for people. Is this something you communicate? Is this something that you encourage?
P
Philippe Schaillee21:29
Probably not enough, but here's what I am doing consciously. Normally I prepare my week on Sunday evenings. What I usually do is set up, kind of put my outbox offline so that on Monday morning the emails that I've written on Sunday night go out. Because I've learned early on that when people get those emails on Sunday night, I think that is expected from them, that's right, you know. So that's really what I was getting at. Yeah, so that's important. And then also holidays and people in the team. I mean, they always say, you know what, we're reachable. You know, I mean, of course I'm on holidays but I'm reachable. No, no, no, you don't have to be reachable. If there's really an emergency, which there probably isn't going to be, then we'll find you. But just those couple of weeks a year, they're critical.
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Bart22:24
Using we, and I'm thinking now about Costa actually. A question I wanted to ask for selfish reasons, to do with a very important decision that you made and some of your colleagues would have been involved in, which is around the 50/50 gender split that you have on your executive committee at Costa. And in the 12 years I've been at Breakthrough, there's been a dramatic change, I would say in the last two years. So before the last two years, I hadn't worked with a single 50/50 split executive committee. In fact, I would say 95% of the executive committees we work with, you'd have the one token woman, probably usually from HR, kind of there and usually not really being able to speak up very much actually, which is kind of shocking. But in the last two years, it's genuinely changed. I mean genuinely changed, and now it's becoming more the norm. Why was it important to you to have that level of diversity? Because it's not just about gender diversity for you, you've got a really diverse team there.
P
Philippe Schaillee23:26
My real objective is to represent our consumers in my executive team. Our consumers are global. I mean, we're with Costa, we are active in close to 55 countries in the world. I want to represent at least the biggest geographies, and I want to represent the fact that our consumers are female and male. So it wouldn't make any sense to have a 100% UK male, pale, and stale executive team, right? So it's with that intent, and always also obsessed by not making any concessions on quality, that we moved into direction of a more international and a more diverse team, both from a gender perspective and from a nationality perspective. And it's working.
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Bart24:23
Super. So like all of the high performance leaders and high performance teams that we work with, Philippe has really recognized and learned to be true the extraordinary value of generating balance in your life. You are not able to perform at your peak at those moments in life where it really matters the most if you've not recharged fully and prepared for that moment. And he's given us some excellent tips and techniques there of how he maintains his balance. So think for yourself: what works for you? Is it sports? Is it spending time with your family? Maybe it's reading a good book? Maybe it's something as simple as going for a walk? But be very clear what are these tools in your personal toolkit, and it's different for every single individual, that enable you to generate that balance, generate that calm, and to be able to recharge fully in order to perform at your best. Okay, all right, so now it's time for the hot seat questions. Are you ready? Of course, of course, cool as a cucumber as always.
P
Philippe Schaillee25:29
What inspires you in life? One word: growth. It's inspiring to grow yourself, this notion of eternal learning. I mean, hopefully I can live as long as I can because every day is a learning moment. It's growth in terms of seeing your kids grow, your family grow. That's fantastic, it's fascinating, it's inspiring, and it's amazing and always energizing to grow a business.
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Bart26:00
And finish this sentence: success is... Success is winning with and through a high performing engaged organization while still maintaining a balanced life.
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Philippe Schaillee26:16
Life. I love that. And of course, if you could only take one book to a deserted island, what book would it be? That's a tough one. There's one professional book and one personal, more fiction book. Professional is a book I read probably 20 years ago, 'Eating the Big Fish', because often times I've worked on challenger brands and it's always inspired me in the way of thinking, changing the frame of reference, and that way working around the competition. In terms of fiction, it would be 'The Quincunx' from Charles Palliser. Oh wow, yeah, not a recent book, but I love historical fiction. It's an amazing book. I've never heard anybody talk about that before. 'The Quincunx', oh really? Okay, yeah, yeah, it's a great amazing book.
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Bart27:16
Philippe, thanks so much. This has been such a great conversation, and I just feel I know so much more about you now, and that's lovely. So thanks, thanks for being so open, actually very open. Thank you. And also thank you for sharing your failures and seeing that value of vulnerability, because it really does make a difference. And it is, I think, one of the most valuable things that we can teach people on this podcast, that most of the top leaders out there have only got there because they failed in lots and lots of different ways and learned from it. So we really appreciate that. Thank you. Super, was a joy.
So thanks again for joining us. Remember to hit the Subscribe button and join us again for our next set of lessons. And if you've got any questions or comments, email us at [email protected] or connect with us directly on LinkedIn at Breakthrough Global. We'd love to hear your own leadership stories, and we'd also love for you to share this episode on your own social media and review and rate this podcast on your player of choice. Thanks to our production team: Julia Schulter over at Breakthrough Global and Robin Leeburn at Fairly Media. And of course, thank you for listening.