Taste Holdings Extends Franchises through Acquisition
Taste Holdings has acquired all 40 St. Elmo’s pizza franchises with effect from 1 November 2010 and the ownership of the brand’s Cape Town based sauce and spice manufacturing facility, which will add substantially to its vertical integration strategy within the food division.
According to Carlo Gonzaga, CEO of Taste Holdings, “Last year we started a vertical integration strategy when we commissioned a central kitchen in which selected food items could be manufactured and supplied to the existing Maxi’s and Scooters Brands. The acquisition of St. Elmo’s includes a HACCP certified, fully operational world-class manufacturing facility that can immediately start producing sauces and spices for the whole group.”
“St. Elmo’s has been in operation since 1987, has enormous brand equity and offers valuable intellectual property, especially within its manufacturing division. Because our businesses are very similar, we will be able to successfully leverage economies of scale, especially in terms of the central kitchen.”
Taste is a South African-based management group that has invested in a portfolio of mostly franchised, category specialist and retail brands. It is involved in establishing and growing franchised brands; marketing and advertising those brands and providing operational support to franchisees.
Although also operating nationally, the franchise is primarily based in the Western Cape and will benefit from the company’s proven support systems in Gauteng and KwaZulu-Natal.
“In addition to obtaining a successfully established brand we will also be gaining valuable industry knowledge, loyal franchisees and dedicated staff,” concludes Gonzaga