Starbucks Is Selling Tazo Tea Brand To Lipton Owner For $384 Million

Starbucks will be selling Tazo Tea to Unilever PLC for $384 million, according to a press release. The sale will include all of Tazo's recipes, intellectual property, and inventory.

Starbucks has owned the tea brand that sells teas in grocery, convenience, and Starbucks stores for the past 18 years — but now the chain is selling the brand to Unilever so that it can focus on selling Teavana tea in-store.

Starbucks recently announced that they would be closing all 379 Teavana locations to promote the tea brand in Starbucks stores. According to the press release announcing the sale, the tea category in Starbucks stores is growing double-digits globally, and the company expects to build the Teavana business to over $3 billion over the next five years.

Starbucks CEO Kevin Johnson said in a statement, "With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever."

Unilever owns more than 400 brands, most notably Lipton and PG Tips teas, Dove, and Axe. The parent brand can celebrate its new acquisition, as Tazo makes one of the best-tasting (and healthiest) bottled green teas.