Starbucks snaps up Teavana tea brand for $620m
Starbucks has added to its tea portfolio by snapping up the Teavana brand, which sells high-end loose leaf teas in 300 shopping malls across the US.
Teavana: Starbucks buys tea brand
Starbucks has paid $620m in cash to buy Teavana, which it will add to the Tazo tea brand it already owns.
The Seattle-based coffee chains plans to expand the Teavana brand beyond the shopping mall with standalone shops, adding tea bars to its portfolio.
Starbucks opened its first Tazo tea shop earlier this year, where customers can buy speciality drinks and blend loose leaf teas with the help of employees.
It is thought that Starbucks is now planning similar type shops for Teavana, which will include the opening of overseas outlets. According to Starbucks, the global tea market is now valued at $40bn.
Starbucks, which has been hit by criticisms over its use of tax loopholes, has looked to broaden its appeal and shift away from its core offering of selling take-away coffee.
These include launching a chilled coffee product called Refresha, acquiring juice brand Evolution Freshin and making its first foray into the low-calorie fruit juice market with the purchase of Starbucks Refresher beverages.
Howard Schultz, Starbucks chairman and chief executive, commenting on the deal, said: "We believe the tea category is ripe for reinvention and rapid growth. The Teavana acquisition not positions us to disrupt and lead, just as did with espresso starting three decades ago.
"Teavana's world-class tea authority, coupled with the romance and theatre of the retail experience that is the heart and soul of Starbucks, will create a differentiated customer experience and business opportunity that delivers immediate value to shareholders."Follow @johnreynolds10
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Copywriter fishtank 25k to 40k per year GBP, Marlow, Buckinghamshire
- PR Account Director fishtank 40k to 55k per year GBP, Surrey
- Head of Marketing fishtank 45k to 60k per year GBP, United Kingdom
- Digital Search & Acquisitions Officer Topshop Up to £30,000 per annum + benefits, London
- planner > SHOPPER EVANGELIST > brilliant role for those SUITS looking to move across into PLANNING collectivo £30-40k + bens, London
- Marketing Executive Warner Bros £ Competitive + benefits, Holborn, London
Big Questions Live - Social Media, User Generated Content and the Power of Customer Insight (Webcast) External website
Brand Republic’s first ever online TV show, Big Questions Live wil...
The PR industry’s lack of success at the Cannes Lions festival 201...
Confused by hashtags? Tweetchats? Tweet walls? You’re not alone.Wi...
It’s fair to say we are truly in the age of content marketing, the...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...