News Worms
News Worms

Starbucks to launch credit card, sell Tazo

Despite announcing in July the decision to close all 379 Teavana brick-and-mortar outlets, Starbucks extended the brand with the February launch of Teavana Craft Iced Teas. It was sold mostly at supermarkets, bib-box, and convenience stores, its product lines include packaged teas, K-Cup pods, and ready-to-drink bottles.

To view the full article, register now. The company fell short of analysts' predictions, reporting revenues of $5.7 billion compared to $5.8 billion projected.

The acquisition by Unilever is the latest in a string of deals by the Anglo-Dutch consumer giant to add smaller and healthier brands to its portfolio, particularly those in the fast-growing speciality tea market. The brand pulled in $112.5 million in revenue over the past year and UL believes that there is room for more growth.

Under the asset purchase agreement, Unilever will acquire the Tazo brand and all related intellectual property, signature recipes and inventory for $384 million. With JPMorgan Chase & Co., the company is also developing credit and debit cards that have rewards built in.

The coffee chain also said Thursday that fourth-quarter sales rose 2 percent at its established locations worldwide. On Thursday, the company posted earnings per share of 54 cents for the quarter, in line with analysts' expectations. And the company committed to returning US$15 billion to investors over the next three years through dividends and stock buybacks. Adjusted earnings came to 55 cents per share, matching what analysts expected.

Starbucks global same store sales were up 2% following a gain of 2% in the amount each customer was spending and an increase of 1% in transactions. The company said US same-store sales would have risen 3% in the quarter if not for closures and lost business related to Hurricanes Harvey and Irma.

Starbucks had net sales for the quarter of $5.7 billion, flat with the same quarter the year prior. The tea category in Starbucks stores continues to grow double-digits globally, with Starbucks well on its way to building the Teavana business to over $3B over the next five years.


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