Does Starbucks Own Tazo Tea? Unveiling the Steamy Truth

No, Starbucks does not currently own Tazo Tea. In 2017, Starbucks sold the Tazo brand to Unilever for a cool $384 million, marking a significant shift in the beverage landscape.

Tazo’s Tangled Tale: From Starbucks Darling to Unilever’s Brew

For years, Tazo was synonymous with Starbucks, a comforting companion to lattes and Frappuccinos. But how did this seemingly inseparable pair part ways? To fully understand this beverage divorce, we need to rewind to Tazo’s beginnings and trace its evolution.

The Origins of Tazo Under the Starbucks Umbrella

Tazo’s story began not as a Starbucks initiative, but as a separate brand launched in 1994. Its focus? Bold, innovative tea blends that stood apart from the more traditional offerings on the market. Starbucks acquired Tazo in 1999 for a relatively modest $8.1 million. The goal was clear: to bolster Starbucks’ tea offerings and capitalize on the growing demand for specialty teas.

Under Starbucks’ ownership, Tazo flourished. It became a staple in Starbucks stores across North America, and its presence expanded into grocery stores and other retail outlets. Starbucks leveraged its existing infrastructure and marketing prowess to elevate Tazo’s brand recognition and distribution. For nearly two decades, the partnership appeared to be a match made in caffeinated heaven (or should we say, theine-ated heaven?).

The 2017 Split: Why Starbucks Sold Tazo

So, why did Starbucks decide to sell a brand that seemed so integral to its identity? The answer lies in a strategic shift. By 2017, Starbucks was increasingly focused on its premium tea brand, Teavana. Starbucks had acquired Teavana in 2012 for $620 million, signaling a clear intention to dominate the premium tea market.

Selling Tazo allowed Starbucks to streamline its operations and concentrate its resources on Teavana. The move was seen as a way to avoid internal competition between Tazo and Teavana and to free up capital for other strategic initiatives. Starbucks leadership believed that Teavana offered greater potential for growth and higher profit margins, particularly in the expanding market for high-end, artisanal teas.

Tazo Under Unilever’s Ownership: A New Chapter

Following the acquisition, Unilever integrated Tazo into its vast portfolio of food and beverage brands. This provided Tazo with access to Unilever’s extensive distribution network, research and development capabilities, and global marketing resources. Unilever already owned brands like Lipton and Pure Leaf. The Tazo acquisition bolstered its position in the tea market and allowed it to cater to a wider range of consumer preferences.

Under Unilever, Tazo has continued to innovate with new tea blends and formats, expanding its presence in both retail and foodservice channels. While no longer directly associated with Starbucks, Tazo remains a prominent brand in the tea industry, continuing to offer its signature bold and adventurous flavors.

Starbucks’ Current Tea Strategy: Focusing on Teavana & Beyond

With Tazo gone, Starbucks doubled down on Teavana. However, the Teavana experiment ultimately proved less successful than anticipated. While Starbucks invested heavily in Teavana tea bars and retail locations, these efforts failed to generate the desired returns. In 2017, the same year it sold Tazo, Starbucks announced the closure of all Teavana retail stores.

Today, Starbucks continues to offer Teavana teas in its stores, but the brand’s presence is less prominent than it once was. Starbucks has also broadened its tea offerings beyond Teavana, including partnerships with other tea brands and the development of its own signature tea blends. Ultimately, Starbucks’ current tea strategy appears to be more diversified and less reliant on a single, flagship brand.

Frequently Asked Questions (FAQs) About Starbucks and Tazo Tea

Here are some frequently asked questions to clarify the details of the relationship between Starbucks and Tazo Tea:

1. When did Starbucks acquire Tazo?

Starbucks acquired Tazo in 1999.

2. How much did Starbucks pay for Tazo?

Starbucks paid $8.1 million for Tazo.

3. When did Starbucks sell Tazo?

Starbucks sold Tazo in 2017.

4. Who bought Tazo from Starbucks?

Unilever bought Tazo from Starbucks.

5. How much did Unilever pay for Tazo?

Unilever paid $384 million for Tazo.

6. Why did Starbucks sell Tazo?

Starbucks sold Tazo to focus on its premium tea brand, Teavana, and streamline its operations.

7. Does Starbucks still sell Teavana tea?

Yes, Starbucks continues to offer Teavana teas in its stores, although the brand’s presence is less prominent.

8. What is Unilever’s strategy for Tazo?

Unilever’s strategy for Tazo involves leveraging its distribution network and marketing resources to expand Tazo’s presence in retail and foodservice channels and to innovate with new tea blends.

9. Can I still buy Tazo tea at grocery stores?

Yes, Tazo tea is widely available at grocery stores and other retail outlets.

10. Is Tazo tea still made with the same ingredients and quality standards?

While formulations may evolve over time under Unilever’s ownership, Tazo generally maintains its commitment to quality and bold flavor profiles.

11. Did the sale of Tazo affect the tea offerings at Starbucks?

Yes, the sale of Tazo led Starbucks to refocus its tea strategy, primarily on Teavana and other tea partnerships.

12. Will Starbucks ever re-acquire Tazo?

While anything is possible in the ever-evolving world of business, there are no current indications that Starbucks plans to re-acquire Tazo. The sale to Unilever appears to be a permanent separation.

In conclusion, while Starbucks and Tazo were once inseparable, they are now distinct entities. Understanding the history behind this beverage breakup provides valuable insight into the strategic decisions that shape the competitive landscape of the tea and coffee industries. So, next time you sip on a cup of Tazo, remember that its journey began under the Starbucks umbrella but has since charted a new course under the ownership of Unilever.