Starbucks has a new caffeine addiction: tea
NEW YORK (AP) — Starbucks wants to make the tea shop as ubiquitous as its namesake cafes.
The Seattle-based company said Wednesday that it will pay $620 million in cash to buy Teavana Holdings Inc., which sells high-end loose leaf teas in 300 shopping mall locations. The plan is to expand Teavana's footprint beyond the suburban mall with stand-alone shops around the world, while adding tea bars where customers can buy hot and cold drinks.
CEO Howard Schultz noted in an interview that Starbucks cafes had modest beginnings as well. The company's 11 locations only sold coffee by the pound in 1987, with its dizzying menu of specialty drinks and baked goods evolving over time. Schultz said the company would use that experience to transform Teavana and tap into the $40 billion global tea market.
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