Taste to focus on food in future as it mulls sale of luxury goods unit
Taste Holdings has announced a strategic restructuring that will result in the group focusing in future on food, and probably selling its luxury goods division during in 2017. On Tuesday, Taste said that a recent strategic review by the board had concluded that the group should concentrate future investments and management efforts on rapidly growing the food business, where returns were high and opportunities abounded. "The luxury goods and food businesses are very different in their maturity, capital returns, and working capital requirements. In particular, the food business, with the recent Starbucks and Domino’s investments, looks much like a start-up and therefore requires more equity than debt to grow, while the luxury goods division, a mature and established business, requires the opposite to capitalise on its growth prospects. "The board has therefore concluded that these businesses will best be served by having separate shareholders and management teams and be allowed to rea...
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