Narrowing the scope of its tea business, Starbucks will sell its Tazo Tea brand to packaged goods company Unilever for $384 million.
With Tazo out of the way, the coffee giant will put its weight behind growing its Teavana tea brand in Starbucks units and other channels, the chain said.
“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,” Kevin Johnson, Starbucks CEO, said in a statement.
Starbucks in July announced it would be closing all 379 Teavana retail locations over the course of a year, noting the underperformance of those units, which were largely based in shopping malls.
The Tazo sale includes “signature recipes, intellectual property and inventory,” according to Starbucks.
The deal is slated to close later this year.
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