Coffee-giant Starbucks will open stores in sub-Saharan Africa for the first time next year after agreeing to a deal with Taste Holdings on Tuesday, sending the South African franchiser’s shares soaring 20 percent.
Under the agreement, Taste, which acquired the licence for Domino’s Pizza in South Africa last year, will have the rights to operate Starbucks coffee shops for 25 years.
“We are proud to be bringing Starbucks to South Africa next year,” Starbucks EMEA President Kris Engskov said in a statement.
“The coffee market here is vibrant and growing fast – we want to be part of that growth,” Engskov added.
Starbucks operates in about 66 countries with over 22,000 retail stores.
The deal includes rights to other African countries, Taste said. Shares in Taste hit a record high in the session and were up 19.9 percent at 5 rand per share.