Starbucks Acquires Teavana for $620 Million
Posted on November 14, 2012
Starbucks has announced the acquisition of Teavana, a specialty tea retailer with 300 stores. Bloomberg reports that the all-cash deal was for $620 million. Starbucks wants to be dominate in both coffee and tea.
Howard Schultz, Starbucks chairman, president and ceo, said in a statement, "We believe the tea category is ripe for reinvention and rapid growth. The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso starting three decades ago. Teavana's world-class tea authority, coupled with the romance and theater of the retail experience that is the heart and soul of Starbucks heritage, will create a differentiated customer experience and business opportunity that delivers immediate value to shareholders. This complements our existing Tazo brand and gives us the unique opportunity to create a two-tiered market position."
Starbucks says it also plans to continue to grow its Tazo tea business. Starbucks says it will use Teavana and Tazo for a "two-tiered market position for tea."
Teavana acquired Teaopia, a mall-based specialty tea retailer in Canada earlier this yearSignificant Happenings Since the Teavana Acquisition
- Starbucks closed all Teavana mall-based tea stores in 2017.
- Starbucks also sold its Tazo tea brand to Unilever in 2017 in order to focus on the Teavana brand.