THE BOTTOM LINE
Uh-oh, that echoing silence is the sound of Taste in trouble
By sticking its head in the sand and refusing to speak openly, it only makes things seem even more dire
Naturally, companies are more eager to tell their stories when times are good, and it’s understandable that they want to disappear into the shadows when things take a turn for the worse.
A case in point is Taste Holdings, which has decided it will say no more than it absolutely has to in its annual results for the year to the end of February.The company, reeling from another loss, insufficient cash to properly roll out its American brands and senior management changes, owns the Starbucks and Domino’s Pizza brands in SA. If the group has a clear plan in place, surely it will want to spread the news to appease investor fears?
When approached for an interview, the company’s public relations team said: “Tyrone Moodley [the CEO] is not doing any interviews.”
With no explanation.On that point, Taste should also consider updating the “why invest?” section of its website. The group still says: “Earnings are underpinned by strong cash flows generated by global and leading local brands that together address 85% of South African consumers in segments with long-term growth tailwinds. It has a 17-year record of solid growth, consistent capital allocations and exemplary good governance.”
Sure, it has been a rough ride for Taste in recent times, but by sticking its head in the sand and refusing to speak openly, it only makes things seem even more dire.