Unilever To Buy Tazo Tea From Starbucks For $384 Million
Consumer goods giant Unilever has announced that it plans to acquire Starbucks' Tazo Tea brand in a $384 million deal.
The tea business, which recorded sales of $112.5 million over the past year, markets speciality black, green and herbal teas in a range of formats. It is sold primarily in the grocery segment in the US and Canada.
“With its strong appeal to millennials, Tazo is a perfect strategic fit for our US portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington’s,” said Kees Kruythoff, president of Unilever North America.
“Tazo’s solid position in the fast-growing specialty tea segment, coupled with Unilever’s tea expertise, presents a fantastic growth opportunity.”
For its part, Starbucks says that it is streamlining its business, and focusing on a single tea strategy with its Teavana brand. The coffee company today posted full year sales results that fell short of estimates.
Unilever has made a number of acquisitions in its food unit this year, including the takeover of organic tea company Pukka Herbs in September.
“Tazo represents another strategic addition which strengthens our tea portfolio towards high growth segments," said Kevin Havelock, president of refreshment at Unilever.
"Its artfully crafted specialty teas perfectly complement our global tea business, which includes Lipton, Pure Leaf, PG Tips, T2 and our recent addition, Pukka.”
Elsewhere, Unilever announced yesterday that it had completed its €2.27 billion acquisition of cosmetics company Carver Korea, in a bid to strengthen its personal care business.
Last month, the consumer goods company, which manufactures brands such as Ben & Jerry's ice cream and Dove soap, reported disappointing third-quarter sales, with revenue growth slowing to 2.6%.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.