Natasha Thompson

In the ever-evolving landscape of UK high streets, Costa Coffee’s story is a compelling case study in what happens when a brand misses the opportunity to build true local connection. Since The Coca-Cola Company acquired the chain for £3.9 billion in 2019, Costa has faced mounting challenges. And while reports now suggest Coca-Cola is considering a sale at a significantly reduced price, the reasons go far beyond a lack of local resonance. From soaring coffee bean prices and rising energy bills to post-pandemic shifts in working habits and intensified competition from both independents and premium chains, Costa has been up against it. Their revenue remains below pre-acquisition levels, with recent financials showing a pre-tax loss of £9.6 million. Running a business at scale in this climate is no small task. But here’s the real question: could stronger localisation and community connection have helped Costa weather these storms? I’d argue yes. My own experience came in a seaside town I know very well, where Costa opened a store in 2013, despite vocal community resistance, including a petition from over 600 residents. Despite overcoming those odds from the outset, the store only operated for six years and never truly embedded itself in the community. In chatting to local staff, they told me they weren’t empowered to adjust the offer or atmosphere to better suit local habits. They were full of brilliant ideas they just weren’t allowed to put into action. The brand presence remained uniform, centralised, and, crucially, a little out of touch with its surroundings. Now contrast that with the success story that is GAIL's. Gail’s doesn’t just serve coffee and pastries - it connects. Its teams are encouraged to form local partnerships, reduce waste through community donations, and shape their spaces to reflect neighbourhood needs. "We’re a bakery that is very ‘neighbour-hoody" said Tom Molnar, Chief Executive in Business Leader "You have to care about the community." Their approach isn't about sacrificing brand consistency; it's about humanising it. Gail’s has become the kind of brand that people want in their community, not one that arrives uninvited. Of course, localisation isn't a magic fix for structural challenges like supply chain complexity or inflationary pressures. But it does help brands build resilience. When people feel seen, valued and listened to, they return, even when their spending tightens. When local teams are empowered, they can respond creatively and meaningfully. When a brand becomes part of the community fabric, it earns loyalty that no national campaign can buy. Costa had the scale, the infrastructure, the footprint but perhaps what it missed was the local heartbeat. And in today’s market, that heartbeat makes all the difference. I hope the next suitor, whether Apollo Global Management, Inc. (The Restaurant Group), TDR Capital (popeyes & Stonegate Group) or someone else, keeps #local in mind. #highstreetpositives

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Gousto’s VP Marketing Anna Greene spoke to Marketing Week about prioritising profitable growth and our ambitions to take on more share of stomach outside the meal kit market. Anna’s key takeaways: 1️⃣Ambition + rigour = sustainable growth “Pairing ambition with real marketing rigour and discipline” means interrogating every part of the marketing mix for efficiency and making the brand and product work tighter together to boost customer lifetime value. 2️⃣ Rethink who you’re really competing with Forget obsessing over market share. For Gousto, if it’s eaten for dinner, it’s competition. 3️⃣ Winning behaviour change, not just brand switching  We’re challenging deeply ingrained grocery habits - our job is to get customers to believe there is a better way to plan, shop, and cook their meals. 4️⃣ Risk is built into the plan Efficiency can smother innovation, so Gousto uses the 70:20:10 model - with 10% of budget protected for experimentation with a “tolerance for risk.” 5️⃣ Lead the dual agenda “We need to deliver the numbers today and build a brand that grows tomorrow.” Balancing short-term performance with long-term equity is the job.

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As the UK prepares for changes in restrictions around advertising less healthy food or drink (LHF), the industry is asking: will this stifle creativity or spark a new era of innovation?   Our CEO, Richard Arscott, shares his perspective in this piece for Creative Salon Worldwide:   "Ultimately, these restrictions have the potential to shape a more positive and beneficial communications landscape - helping build brands the world wants more of that drive commercial performance while also serving people and the planet."   Read the full article in the comments below. #Advertising #Creativity #LHF #HFSS

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As the busiest time of year approaches, preparation is everything. We asked a few of our operations directors at NRI to share their top pieces of advice for brands looking to navigate peak season with confidence. From demand planning to customer communication, here’s what they had to say about setting yourself up for success 👉 https://lnkd.in/gKEH3WAy

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Retail media is growing up, but the roots matter. I had a brilliant conversation with Tom Limongello and Todd Sawicki on The Middlemen Podcast. We covered a lot, but a few things stuck: 🔄In the UK, retail media started in-store. Tesco. Loyalty cards. Coupons at checkout. That foundation still shapes how we think at SMG: holistic campaigns that enhance the shopper experience, not channel-by-channel plans. 🎯The best campaigns don’t start with "We want *insert media channel*." They start with KPIs, "We need to drive penetration," or "This SKU isn’t getting picked up enough." And then we use every tool in the kit: media, promo, price, etc. to make it work. 🧠Merchandising and media must move together. If they’re misaligned, one of two things happens: either nothing moves, or the wrong metric does. ✈️ And travel retail? Hugely underutilized (for now). SMG North America is proud to power WHSmith North America Media Network to unlock the value of high-intent, high-spend airport shoppers. No e-commerce. No endless scroll. Just real-world attention for brands. It’s always refreshing to step outside the echo chamber and have an honest chat about what’s working (and what’s not). Link to the podcast episode in the comments below! Would love to hear what you think. Cheers to Tom and Todd for the invite. #retailmedia #themiddlemen #thoughtleadership

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