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 Entertainment

Today in entertainment history: Oct. 6

Garth Brooks

A look back at the Hollywood headlines that went down in history.

in Entertainment

‘Spectre’ destroyed nearly $34M worth of cars


The price tag for the latest installment in the "James Bond" franchise includes millions in automobiles, including seven specially-created Aston Martins that were wrecked during filming.

in Music

Blake Shelton ‘in a good place’ after divorce


"The Voice" judge has opened up about his recent split from Miranda Lambert.

in Music

It’s been 20 years since NSYNC formed


It's been two decades since the boy band started making music together. Here's a look at what they are up to now.