Starbucks doesn't scare Famous Brands

By Staff Writer
You’d think that the announcement that Starbucks will be entering the South African market would leave some local competitors quaking in their boots but one rival is already welcoming the move.

Kevin Hedderwick, group chief executive of Famous Brands, noted: “We regard all global brands as competitors but our stance is that we welcome competition because it helps to grow the category.  We will however continue to fiercely protect our hard earned market share which is not for sale. We have lived through the threats of McDonalds, Burger King, Domino’s, Pizza Hut etc. and will do the same surrounding Starbucks.”
 
Famous Brands is responsible for a number of well-known food brands in South Africa. These include: Mugg & Bean, Wimpy, Europa, Fego Caffe, Vovo Telo, House of Coffees, and Tashas.
 
Starbucks will soon be joining the ranks of other international food chains to make a mark on the South African market. Together with Taste Holdings, the international coffee brand will be opening its first South African store in Johannesburg in 2016.
 
In a statement, Kris Engskov, the president of Starbucks Europe, the Middle East and Africa (EMEA), said: “We are proud to be bringing Starbucks to South Africa next year. Working with Taste, our partner, we’re going to deliver a great Starbucks experience. The coffee market is vibrant and growing fast – we want to be part of that growth, bringing the passion and energy of this remarkable country into the design of our first store and out first barista team.”
 
Launching in South Africa
 
Taste Holdings, which owns food brands such as Domino’s Pizza, The Fish and Chip Co, and luxury brands such as Arthur Kaplan, owns the exclusive rights to develop Starbucks in South Africa.
 
Carlo Gonzaga, CEO of Taste Holdings, revealed: “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. Starbucks supports the development of local suppliers and is fully committed to our Changing Lanes programme wherein we have provided employment to previously unemployed people and expose them to global training initiatives and skills. Overall we’re a good partnership match.”
 
Skills development will be a major focus for the new Starbucks and Taste Holdings initiative.

“Young people are the key to our success. The majority of our workforce is aged between 17 and 25 so talented youth has always been a priority and we will equip our new partners with the skills necessary to succeed in today’s economy. We look forward to using our partnership to leverage Taste’s strong track record of creating jobs and developing great people,” said Engskov.
 
Gonzaga highlighted: “We’re looking forward to bringing the entire Starbucks experience to South Africa for the first time. That includes 100% ethically sourced Arabica coffee, Starbucks full menu offering and of course beautiful coffee houses.” 

Recent Articles

Featured The real tax benefits of retirement annuities

We all know that having a retirement annuity (RA) helps us to retire comfortably and with dignity. But what many people miss are the tax benefits that are linked to an RA.

Request your credit report from the right bureau

With so many different credit bureaus in South Africa, it may be difficult to decide from which one to request your credit report. We have a look at what you should be aware of when selecting a credit bureau.

Applying for a home loan? Consider the repo rate

When you apply for a home loan, one of your top priorities should be to secure a low interest rate. In order to achieve this, you need to be familiar with the repo rate. We find out more about this.

Effective financial planning as a single parent

As a single mom or dad, it can be challenging to keep up with the ever-increasing expenses of raising a child. We have a look at the importance of setting up a budget as a single parent.

Deals

The President Hotel’s Sunday Lunch Special

Price: From R250
When: From 30 January 2022
Where: Cape Town

The Vineyard Summer Special

Price: Available on request
When: Until 28 February 2022
Where: Cape Town

Pure Day Spa Laser Treatment Special

Price: Available on request
When: Thursdays
Where: Durbanville


Latest Guide

Guide to debt rehabilitation solutions