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Shares in Taste Holdings surged 20% to a record high of R5 in early trade, valuing the company at R1.48bn.
"We are very excited to be Starbucks' partner in Southern Africa. As we've visited numerous Starbucks markets and partners around the world we've come to realise that we share similar core values, including a commitment to localisation and uplifting both direct and indirect partners," said Carlo Gonzaga, CEO of Taste.
The license agreement sees Taste owning the exclusive rights to develop Starbucks retail outlets in South Africa. As Taste is the licensee, it will own and operate the stores directly.
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