TL;DR
Starbucks has agreed to sell the Tazo tea brand to Unilever for $384 million, focusing on its up-level strategy with Teavana. The deal includes Tazo's recipes, intellectual property, and inventory.
Starbucks Corp. has agreed to sell the Tazo tea brand for $384 million to Unilever PLC, according to a recent Nation’s Restaurant News article. This will give Unilever Tazo’s recipes, intellectual property and inventory in the deal, which was originally acquired by Starbucks in 1999 for $8.1 million
After announcing the closing of all 379 Teavana locations, Starbucks planned to focus on selling the brand’s tea in stores and by selling Tazo, the company says it is sharpening its focus on its up-level strategy with Teavana. Inside of Starbucks locations, tea sales have seen double digits growth annually, especially in Asian markets where the chain is expanding.
“With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever,” Starbucks CEO Kevin Johnson said in a statement.
In this story
This story was originally published in 1851 Franchise on November 3, 2017. Burnaze summarizes and links to the original reporting.
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