Oct 23 Having made its mark in the global coffee
market, Starbucks Corp is setting its sights on tea -
the world's most consumed beverage after water - which it dubs a
$90 billion market opportunity.
On Thursday, the Seattle company will open its first Teavana
tea store and bar on Manhattan's Upper East Side. The debut
comes as Starbucks expands its reach with new shops focusing on
everything from premium tea to pressed juices.
"This new store concept elevates the tea experience in the
same way we've done for coffee," Starbucks Chief Executive
Howard Schultz said in a statement.
Starbucks' $620 million purchase of tea store chain Teavana
Holdings Inc last year was the coffee chain's largest
acquisition to date.
Its new Teavana store will have a tea bar serving hot and
cold drinks, including tea lattes and sparkling tea-based
drinks. It also will sell food ranging from sweets to salads and
flat breads as well as loose-leaf teas and merchandise such as
Teavana had about 300 shopping mall stores that sold
loose-leaf, exotic teas when it was bought by Starbucks. The
coffee chain said it would decide later whether to add tea bars
to those existing stores.
Tea is not new territory for Starbucks. It bought Tazo tea
for $8.1 million in 1999 and built it into a billion-dollar
brand through sales at Starbucks stores and the grocery aisles
of other retailers.
The company opened a Tazo tea store in Seattle last year and
now plans to convert it to a Teavana store that will open in
Starbucks also has opened four Evolution Fresh juice bars
since its $30 million purchase of the juice maker in 2011.