Deals
Argo Tea Links Up With Billionaire Family's Coffee Empire
- Company will open about 40 tri-branded restaurants in 2017
- Adding Tea brand may help JAB better compete with Starbucks
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Caribou Coffee is investing in Argo Tea Inc. through a licensing pact that’s paving the way for co-branded stores, part of JAB Holding Co.’s efforts to assemble a vast beverage empire, according to people familiar with the matter.
JAB is planning to open 40 cafes next year that feature its Caribou Coffee and Einstein Bros. Bagels brands alongside Argo Tea, said one of the people, who asked not to be identified because the agreement isn’t public. A handful of early tri-branded locations are already open in the Minneapolis area, Caribou’s home base. The licensing payment could be converted into equity in the future, giving JAB a stake in Argo, the person said.