Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beverage NewsTea and Coffee

Unilever to acquire Tazo from Starbucks

Starbucks shifts to single tea brand strategy with Teavana

Beverage News
November 3, 2017

Englewood Cliffs, N.J.-based Unilever North America announced an agreement to acquire the TAZO brand from Seattle-based Starbucks Coffee Co. TAZO is a leading brand in the fast-growing specialty tea category.

Under the asset purchase agreement, Unilever will acquire the TAZO brand and all related intellectual property, signature recipes and inventory for $384 million, the company says. The transaction represents a multiple of 10 times pro forma EBIT. TAZO had sales of $112.5 million during the past year ending June 30, 2017, it adds.

Founded in 1994, TAZO has a strong position in specialty black, green and herbal teas, as well as liquid concentrates focused in the chai latte segment. The fast-growing specialty tea segment makes up 48 percent of the at-home tea category and trends suggest it will become more prominent in the future, the company says. TAZO is primarily sold in grocery, mass and convenience channels in the United States and Canada. The brand is offered in formats including packaged teas, K-Cup pods and bottled ready-to-drink teas.

“With its strong appeal to millennials, TAZO is a perfect strategic fit for our U.S. portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington’s,” said Kees Kruythoff, president of Unilever North America, in a statement. “TAZO’s solid position in the fast-growing specialty tea segment, coupled with Unilever’s tea expertise, presents a fantastic growth opportunity.”

Kevin Havelock, president of Refreshment at Unilever, added: “TAZO represents another strategic addition which strengthens our tea portfolio toward high-growth segments. Its artfully crafted specialty teas perfectly complement our global tea business, which includes Lipton, Pure Leaf, PG Tips, T2 and our recent addition, Pukka.”

With Unilever taking the reins on the TAZO brand, Starbucks is moving to a single tea brand strategy and focus with its super-premium tea brand, Teavana.

Starbucks will continue to invest in the growth, innovation and development of the Teavana brand of teas in its stores and other channels, the company says. The tea category in Starbucks stores continues to grow double-digits globally, with Starbucks on its way to building the Teavana business to more than $3 billion in the next five years, it says.

“Over the past five years, we have established Teavana as our primary global brand focused on the premium tea segment. With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever,” said Kevin Johnson, president and chief executive officer of Starbucks, in a statement. “We continue to see significant growth in our tea business through our Teavana brand, and this transition supports our strategy to elevate the premium tea experience for our customers.”

Subject to regulatory approval, the transaction is expected to close in the fourth quarter 2017, with complete transition between the two companies by the end of calendar year 2018, subject to regulatory approval. 

KEYWORDS: mergers and acquisitions Tazo

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Beer
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Sting Energy

PepsiCo, Sting Energy unveil global partnership with Formula 1

PepsiCo + poppi

PepsiCo completes acquisition of poppi

people drinking Wynk

Mindful drinking prompts growth for THC beverages

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

June 26, 2025

FAST. FOCUSED. FUELED: Delivering Energy Consumers Can Feel

Learn how to formulate products that deliver the energy experiences that people want, and keep them coming back for more.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Starbucks acquires Teavana

    Starbucks to acquire Teavana for $620 million

    See More
  • Beverage News

    Harvest Hill to acquire Nutrament business from Nestlé HealthCare Nutrition

    See More
  • Beverage News

    Tilray Brands to acquire 8 beer, beverage brands from Anheuser-Busch

    See More

Related Products

See More Products
  • bigfood.jpg

    Big Food: Critical perspectives on the global growth of the food and beverage industry

  • food and bev control.jpg

    Food and Beverage Cost Control, 7th Edition

  • nanoinbev.jpg

    Nanoengineering in the Beverage Industry 1st Edition

See More Products

Events

View AllSubmit An Event
  • October 31, 2017

    Total Productive Maintenance (TPM): Strategies to Improve Your F&B Operations

    ON DEMAND: Tetra Pak’s expertise is rooted in deep experience with our own factories as well as our work on a diverse range of global projects. In this webinar, we’ll share strategies tailored for the food and beverage industry, including how to improve business performance by understanding losses, implementing sustainable improvements and achieving a higher, more flexible and predictable production.
View AllSubmit An Event
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing