Starbucks buys luxury tea brand

Starbucks has bought Teavana, a luxury tea house chain in the US, in a bid to expand its business beyond coffee and grow the tea market.

Starbucks

The $620m deal will see Starbucks acquire Teavana’s 300-strong chain of tea stores.

Teavana sells a range of high end and exotic loose leaf teas within shopping malls across the US.

Starbucks CEO Howard Schultz told Reuters that he hopes to replicate the success of its coffee shops and “do for tea what we did for coffee.”

Starbucks already owns the Tazo tea brand and has previously outlined plans to grow its presence as a standalone brand. The first Tazo tea bar will open in Chicago this week and act as a “laboratory” for Teavana, Schultz told Reuters.

Schultz plans to open additional Teavana stores in the US and abroad but it is not yet known whether the Teavana brand will come to the UK. Starbucks will also add tea bars that sell prepared drinks within Teavana stores and develop a range of Teavana branded packaged products.

Starbucks acquired a fresh juice company earlier this year and plans to open a chain of juice bars.

The company is embroiled in a tax avoidance row along with other companies in the UK after it was revealed that it has paid no corporation tax in the UK since 2009.

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Comments

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  1. biwei 10 Feb 2015

    It’s a nice try for Starbucks, i mean, Starbucks is a global company that has giant customer base, and you can see people holding Starbucks everywhere on the street. For me, when i think of Starbucks i will not think of teas, instead, what come into my mind is coffee. And for me Starbucks is such a classic coffee house, and i will always choose Starbucks for a cup of coffee knowing that there are many other coffee house. They have great service and good quality coffee.
    I believe that for those company that already have long history and stable customer base, it is a good thing to try different new things, just like Starbucks is trying Teavana. Also tea can be a healthier substitute for coffee since drinking too much coffee can cause heart problem. I think Starbucks will not regret their decisions, i will check their new tea out next time when i go there.

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