Advertisement

HindustanTimes Mon,22 Sep 2014

Starbucks in chai push with Teavana...

Reuters  Chicago, November 15, 2012
First Published: 22:58 IST(15/11/2012) | Last Updated: 23:07 IST(15/11/2012)

Starbucks Corp said on Wednesday it plans to buy tea store chain Teavana Holdings Inc for $620 million ( Rs. 3348 crore), aiming to replicate the success it has had with its namesake coffee shops.

Advertisement

Teavana has 300 shopping mall stores that sell loose-leaf exotic teas. In addition to opening standalone Teavana stores in the US and abroad Starbucks will add tea bars that serve prepared drinks in existing Teavana stores, said Howard Schultz, chief executive, Starbucks.

"We will do for tea what we did for coffee," said Schultz. "Tea is the opportunity of a lifetime."

The deal marks the third acquisition over the past year from Starbucks,  which is looking for new avenues of growth beyond its core coffee business.

Teavana chief executive Andy Mack is forecasting 500 total Teavana stores by 2015.

The world's largest coffee shop operator will pay $15.5 per share in cash for Teavana.

Starbucks had bought Tazo tea for $8.1 million in 1999.


Advertisement
more from Business

Maruti's hold on best selling car models in India continues

Country's largest car-maker Maruti Suzuki India continues its dominance on the Indian roads, with its four models, led by entry-level small car Alto, heading the top ten best sellers list in April-August period this fiscal.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved