JOHANNESBURG (Reuters) – Shares in restaurant and retail group Taste Holdings jumped nearly 20 percent on Tuesday after the company said it had signed an exclusive deal with coffee giant Starbucks to develop outlets in South Africa. It also has rights to other African countries. Taste CEO Carlo Gonzaga told CNBC Africa that he is unable to comment on which countries he will be taking the brand to on the continent.
He did note that Starbucks sources a considerable amount of its global, high-quality coffee from nine African countries. The brewed coffee has partnerships with its network of farmer support and agronomy centres in Ethiopia, Rwanda and Tanzania.
Under the agreement, Taste, which in 2014 also acquired the licence for Domino’s Pizza in South Africa, will operate Starbucks coffee shops for 25 years.
The first Starbucks store will be opened next year.
Taste shares were up 19.9 percent at 5 rand by 0907 GMT.
In 2010 during the Soccer World Cup, Starbucks initially had a temporary deal with select Southern Sun Hotels and Tsogo Sun Casinos in Johannesburg, Cape Town and Durban.
With additional reporting by CNBC Africa.