Starbucks to Open New York Tea Bar in Push Beyond Coffee
Starbucks Corp. (SBUX), the world’s largest coffee-shop chain, is opening its first Teavana tea bar in New York as the company pushes beyond its signature drink.
Teavana Fine Teas & Tea Bar, on Manhattan’s Upper East Side, will start selling hot brewed and iced teas, loose-leaf teas, merchandise and food tomorrow, Seattle-based Starbucks said today in an e-mailed statement. Starbucks said it will add more tea bar locations in the next year.
Starbucks, which dropped the word “coffee” from its logo more than two years ago, has been expanding beyond java, buying juice brand Evolution Fresh Inc. in 2011 and pastry company Bay Bread LLC last year. Starbucks acquired Atlanta-based Teavana in January for about $620 million, the company’s biggest acquisition.
“We are excited to celebrate the first retail example of how our two companies are coming together,” Starbucks Chief Executive Officer Howard Schultz said in the statement.
The global tea hot and iced tea category is worth about $90 billion, and tea is the most consumed beverage behind water around the world, Schultz said.
The New York store is located at 85th Street and Madison Avenue.
Starbucks fell 0.3 percent to $80.64 at 9:43 a.m. in New York. The shares gained 51 percent this year through yesterday, compared with a 23 percent increase for the Standard & Poor’s 500 Index.
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