Starbucks has announced plans to do for tea what it did for espresso 30 years ago, and according to CEO and President Howard Shultz, Teavana is the perfect fit. Starbucks purchased the 300-store chain this week, planning to capitalize on its extensive knowledge of tea, broad offerings and commitment to quality that makes it a perfect fit with Starbuck’s brand and culture.
The acquisition gives Starbucks a solid foothold in the $40 billion global market for tea. The company plans to expand the brand’s footprint, extending it into neighborhoods as well as area malls and consumer products. The company has also ventured into international markets, opening its first store in the Middle East. The purchase comes close on the heels of another major acquisition in the tea market, Tazo, which opened its first store in Seattle’s University Village this week.
The company hopes that it can rapidly expand Teavana using its existing infrastructure, purchasing power and store design and operations experience, which propelled the Washington State based company into the rarified realm of “business legend.”
Starbucks paid $630 million in cash for the company and the deal is expected to close by year’s end, pending regulatory approval.
You can find out more about Teavana on the company’s website.
Read more about the Teavana acquisition at Bevnet.