Starbucks announced on Friday that they will integrate their 3 Teavana tea bars located in New York into regular Starbucks locations as well as closing completely the Beverly Hills, California, store, effectively putting the nix on plans to expand their tea stores.
The company says that they are not abandoning their tea idea altogether, but they feel Starbucks would be better served by simply offering their teas to customers inside regular locations. The only exception being the Teavana tea bar which is located in the Seattle University Village. This location, which opened in 2013, will remain in place and unchanged.
Starbucks purchased Teavanan in late 2012 for $616 million. These locations, in addition to selling designer teas, also offered upscale pastries and foods. The company states that they still believe that Teavana tea is a winning idea that customers want, however, this move seems to indicate that Starbucks is refocusing on their core plans.
There are currently 350 Teavana stores across the United States, which offer bulk tea sales, but do not offer individual cups of tea, or food, for sale. Tea sales are expected to grow by double digits in the next year and do more than $3 billion dollars in sales over the next 5 years.
Starbucks also purchased La Boulange bakeries and cafes in California in 2013 but ended up shutting down most of these upscale bakeries. Starbucks also purchased Evolution Fresh, a juice company, in 2011. The company has yet to develop this end of the business any further than the 3 locations they now have, all located in the Seattle area.
Starbucks coffee and Teavana tea. Do they go together? Or is this a doomed relationship? Only time will tell.
Source: Seattle Times
xStarbucks announced on Friday that they will integrate their 3 Teavana tea bars located in New York into regular Starbucks locations as well as closing completely the Beverly Hills, California, store, effectively putting the nix on plans to expand their tea stores.
The company says that they are not abandoning their tea idea altogether, but they feel Starbucks would be better served by simply offering their teas to customers inside regular locations. The only exception being the Teavana tea bar which is located in the Seattle University Village. This location, which opened in 2013, will remain in place and unchanged.
Starbucks purchased Teavanan in late 2012 for $616 million. These locations, in addition to selling designer teas, also offered upscale pastries and foods. The company states that they still believe that Teavana tea is a winning idea that customers want, however, this move seems to indicate that Starbucks is refocusing on their core plans.
History
There are currently 350 Teavana stores across the United States, which offer bulk tea sales, but do not offer individual cups of tea, or food, for sale. Tea sales are expected to grow by double digits in the next year and do more than $3 billion dollars in sales over the next 5 years.
Starbucks also purchased La Boulange bakeries and cafes in California in 2013 but ended up shutting down most of these upscale bakeries. Starbucks also purchased Evolution Fresh, a juice company, in 2011. The company has yet to develop this end of the business any further than the 3 locations they now have, all located in the Seattle area.
Starbucks coffee and Teavana tea. Do they go together? Or is this a doomed relationship? Only time will tell.
Source: Seattle Times