Starbucks Buys Teavana Holdings
The number of properties growing under the Starbucks name just got one bigger: Starbucks announced today that it is buying Teavana Holdings Inc., a tea store chain, for $620 million.
In its largest acquisition yet, reports Bloomberg, it's clear that Starbucks is moving into the tea game. Teavana has 300 storefronts and sells loose-leaf, exotic teas in stores. One analyst told Bloomberg that Teavana is an even more recognized brand name than Tazo, Starbucks' in-house tea.
CEO Howard Schulze told Reuters that the plan is to open more Teavana stores and to add "tea bars" in existing Teavana stores with prepared drinks. Reminiscing about when Starbucks first opened an espresso bar in 1987, Schulze said, "We will do something very similar over time with Teavana... We will do for tea what we did for coffee."
Some say that the new move into the tea business is good for its further expansion into Asian markets, where tea reigns over coffee consumption. The acquisition follows this summer's purchase of the La Boulange Bakery, and the purchase of Evolution Juices before that. Clearly, Starbucks just wants to rule the beverage world.