Starbucks Announces TAZO Sale to Unilever

Starbucks posts disappointing sales figure, will sell Tazo

After reporting worse-then-projected quarterly and yearly sales on Thursday, Starbucks, the Seattle company best known for killing Christmas every year, announced plans to unload its Tazo tea brand to Unilever for $384 million.

Starbucks said that, by selling Tazo, it would "sharpen its focus on its up-level tea strategy with Teavana".

Now the iconic tea brand is sold primarily in grocery, mass and convenience channels, offered in formats including packaged teas, K-Cup pods, and bottled ready-to-drink teas.

To view the full article, register now. But the coffee chain also reported disappointing fourth-quarter sales growth at stores around the world, and its shares fell more than 3 percent in after-hours trading.

Unilever plc (ADR) notes that the acquisition price for the Tazo Tea brand represents 10 times its pro forma EBIT.

"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 CEO, Starbucks.

NYC TERROR ATTACK: Trump calls for extreme vetting
In response to the attack, President Trump tweeted, "In NYC, looks like another attack by a very sick and deranged person".

The chain's fourth quarter in 2016 included an extra week, so comparisons between this year and last week will be a little off, the company said.

Tazo was founded in Portland, Ore.in 1994 by Stash Tea co-founder Steven Smith, who sold the company to Starbucks in 1999 for $8.1 million.

According to the company, Starbucks sold more than $1.6 billion of prepared and RTD Teavana beverages in its stores in the past 12 months. The company expects to launch a Starbucks-branded credit card with Chase this winter. Stripping out the impact of Hurricanes Harvey and Irma, which struck the U.S.in September, comparable sales would have been up 3 percent.

USA same-store sales increased 2 percent, including a 1-percent increase in the number of customers.

Results: EPS of 55 cents, meeting views, but falling short of sales expectations with $5.698 billion in revenue. 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.

Related:

Comments

Latest news

Jose Mourinho speaks on Nemanja Matic's move to Manchester United
In a sudden, and shock, move, Matic left the Premier League champions as Manchester United snapped him up for over £35m. He continued: 'Honestly if I wanted to risk him I could do this against Bournemouth, I could do this against Roma.

Why it should worry you that Trump's Twitter feed went down
The reason this happened? The error message is usually for accounts that have been deleted, rather than suspended by Twitter. A Twitter employee, on his last day at the job, deactivated the account of Donald Trump on the social network.

Trump said to be souring on son-in-law
The former advisor added, " I would say [Kushner] should go back to real estate in NY . The White House didn't respond to Vanity Fair's request for comment.

Broadcom is reportedly exploring a massive acquisition of $80 billion Qualcomm
Since then, though, smartphone sales growth has slowed and Intel has succeeded in placing its modems in some iPhone models. Regulators are still reviewing Qualcomm's $38.1 billion proposed acquisition of NXP Semiconductors for $38.1 billion.

SC refers individual cases against demonetisation to constitution bench
The High Court had dismissed the Delhi government's claim that the AAP-Centre tussle was a "classic" federal dispute. SC said, the LG will be the administrative head and will not be bound to advise of the council of ministers.

Scientists discover hidden chamber in Great Pyramid
Muons (elementary particles similar to electrons) originate from collisions between cosmic rays and atoms in the upper atmosphere. They saw those rooms but, to their surprise, they found an additional large space as well.

Spanish court postpones questioning of six Catalan legislators
The deposed leader was photographed in a cafe in Brussels on Thursday while other Catalan government members appeared in court . The high court, known as the the Audiencia Nacional, had ordered Puigdemont and the 13 other ministers to appear.

Trump thinks twice on sending NY attacker to Guantanamo
Two weeks ago, a jury took four hours to convict a man in a September 2016 bombing in New York City that wounded 30 people. He noted over 500 defendants have been convicted of terrorism-related crimes since the September 11, 2001, attacks.

Osweiler Named Starting QB By Broncos
He was cut by Cleveland during training camp and signed to be Denver's backup ahead of its season opener in September. That final year when they won the Super Bowl , he went 5-2 as the starter while the future Hall of Famer was injured.

Hairy Heidi Klum Dons 'Thriller' Werewolf Guise for Halloween Bash
Klum really got into act when she performed the classic " Thriller " dance at the party, which was held at Moxy Times Square . With little help from her prosthetic chest and hand, the 44-year-old model looked no less horrifying than MJ himself.

Australia to ban climbing on Uluru from 2019
Indigenous Australians have also complained about visitors urinating on the rock, potentially contaminating water sources. More than 30 people have died attempting the climb, which is often closed during periods of high temperatures or weather.

Utah nurse arrested by police reaches $500K settlement
A 24-year-old ex-convict is suspected of shooting the student to death after demanding Guo's auto , according to Utah authorities. The university advised those on campus to shelter in place and issued a campus alert Monday about 9 p.m.

Halloween Candy for Heroes! - A Great Use of Your Extra Halloween Candy
Now that Halloween is behind us, some parents may wonder what they should do with their kids leftover candy. Kool Smiles at 1852 Bluffton Road will collect trick-or-treat candy from children in exchange for a toy.

Russia, Azerbaijan, Iran to discuss efforts to counter terrorism, drug trafficking
President Ilham Aliyev also for his part said while he is in Iran he feels that he is in his own home. Putin also met Iran's supreme leader, Ayatollah Ali Khamenei, who has final say on all state matters.

CME Readies Bitcoin Futures in One Small Step for Cryptocurrencies
LedgerX launched bitcoin derivatives earlier this month and has already experienced higher-than-expected volumes. While some are highly pessimistic others have preferred to grow with the optimism.

Other news