News

Starbucks to open first Teavana store

Starbucks to open first Teavana store

STARBUCKS EXPANDING: Starbucks plans to open Teavana stores. Photo: Reuters

(Reuters) – 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 teapots.

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 mid-November.

Starbucks also has opened four Evolution Fresh juice bars since its $30 million purchase of the juice maker in 2011.

Recent Headlines

in National, World

Israel intensifies Gaza assault, Egyptians revise truce plan

A Palestinian firefighter reacts as he tries to put out a fire at Gaza's main power plant, which witnesses said was hit in Israeli shelling, in the central Gaza Strip July 29, 2014.

Israel knocked out Gaza's only power plant, while Egyptian mediators prepared a revised proposal for halting its war with Islamist militants in the enclave.

in Local

Lightning Cause Of Worthington Fire

fire-chief

Lightning is being blamed for a destructive house fire in Worthington.

in Local

Anti-Pipeline Marchers Approach Boston

pipeline

Anti-pipeline marchers are expected to show up at the State House in Boston tomorrow.

in Local

Tree Workers Get Stuck In Truck

thunderstorm

Members of a tree removal company are safe after being trapped inside their truck in Deerfield.

in Local

Volleyball Designated State Sport

volleyball

The state legislature has designated volleyball the official recreational and team sport of Massachusetts.