Starbucks is taking the $90 billion global tea market head on opening its first Teavana Fine Teas + Tea Bar in Manhattan tomorrow. Will Starbucks revolutionize the tea industry the same way it did coffee?
Candice Choi/AP Photo
Brewery, bakery, juicery. Now you can add zen tea bar to Starbucks’ list of specialties.
Starbucks will open its first Teavana Fine Teas + Tea Bar this Thursday in Manhattan’s Upper East Side. The tea bar will serve luxury tea beverages, tea-inspired food and sell tea merchandise.
Starbucks dropped the word ‘coffee’ from its logo in 2011 in a move to expand beyond the coffee market and become a multi-product company. And over the past two years, the company has made several changes with goal in mind. In November 2011, it jumped into the $1.6 billion juice market with the acquisition of bottled juice company Evolution Fresh and opened four stand-alone juice bars under the same name. Earlier this year, the chain went after the taste buds of pastry lovers with the introduction of La Boulange brand baked goods. Now, Starbucks is betting on the $90 billion global tea market with new Teavana Fine Teas + Tea Bars.
Starbucks acquired the specialty-tea retailer of about 300 stand-alone stores last November. Closing at $670 million, Teavana was Starbuck's largest acquisition to date. In addition to opening Teavana Tea Bars, Starbucks plans to introduce Teavana speciality tea drinks to their menu in the future.
“Tea has been a part of Starbucks heritage since 1971, when we were founded as Starbucks Coffee, Tea and Spices, and this new store concept elevates the tea experience in the same way we’ve done for coffee,” Howard Schultz, Starbucks chairman, president and chief executive officer, said in a press release.