nsucurrent.com
nsucurrent.com November 24, 2017


Starbucks to sell Tazo tea brand to Unilever for $384 million

04 November 2017, 12:28 | Ruby West

Starbucks posts disappointing sales figure, will sell Tazo

Apple chief executive Tim Cook visits an Apple store in Glasgow

In announcing the Tazo deal, however, the retailer said it will continue to invest in the growth and development of the Teavana brand in Starbucks stores and in other channels. In the past year, Tazo had sales of $112.5 million. It was sold mostly at supermarkets, bib-box, and convenience stores, its product lines include packaged teas, K-Cup pods, and ready-to-drink bottles.

This acquisition is the latest in a series of deals by Unilever, an Anglo-Dutch consumer giant, to add smaller, healthier brands to expand its portfolio in a fast-growing specialty tea segment.

Starbucks paid $8.1 million for Tazo in 1999, five years after it was founded.

"With its strong appeal to millennials, Tazo is a flawless strategic fit for our USA portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington's", said Kees Kruythoff, president, Unilever North America. But the coffee chain also reported disappointing fourth-quarter sales growth at stores around the world, and its shares fell more than 3 percent in after-hours trading.

On the company's quarterly call, Starbucks said it would launch a co-branded Chase Visa credit card this winter. The company attributed the performance in part to Hurricanes Irma and Harvey.




The coffee chain also said Thursday that fourth-quarter sales rose 2 percent at its established locations worldwide. Overall, the company reported net income of $788.5 million, or 54 cents per share, in the three months ending October 1. The company said US same-store sales would have risen 3% in the quarter if not for closures and lost business related to Hurricanes Harvey and Irma. US same-store sales grew 2%.

Starbucks had net sales for the quarter of $5.7 billion, flat with the same quarter the year prior.

Net income for the quarter reached $788.5 million equal to 54 cents per share, in comparison to $801 million equal to 54 cents per share for the same period one year ago.

Excluding some items, profit came in at 55 cents a share, which was in line with analysts' forecast.



Other News

Trending Now

Abducted Pak woman journalist helping Indian national rescued after two years
Retired justice Javed Iqbal , head of the missing persons commission, confirmed Shahzadi's return while speaking to BBC Urdu . She was rescued from somewhere between the Pakistan and Afghanistan border on October 20 by Pakistani security forces.

At least 14 dead in Mogadishu attack
Its sister hotel, the Nasahablod, was targeted by Al Shabab in a similar attack that killed 11 people in June past year . Two more blasts were heard, one when an attacker detonated a suicide vest on Saturday.

BJP unable to ignore Rahul
Reacting to the media reports, Rathore tweeted: "In sports, this would come under "Doping". hey wait! does "dope" remind you of someone".

New accuser: Weinstein pulled out my tampon and forced oral sex
I was in disbelief and disgusted". "I said I'm on my period, there's no way this is going to happen, please stop". Allred declined to comment on whether they will sue, and whether they will go to the cops about this.

NASA's Halloween playlist will 'make your skin crawl'
In classic NASA fashion, the playlist also includes an explanation of what listeners are actually hearing in the sound clips. The eerie sound is similar to the emissions recorded on Earth during the aurora borealis in the northern hemisphere.

Tillerson's three-day India visit from Tuesday
Pakistan has acknowledged that it has some influence with the Taliban , but says it does not control the movement or its leaders. In September, India worked with Afghanistan and identified priorities and projects where Kabul needed New Delhi's assistance.

Tropical Storm Philippe forms, races toward southeast Florida
A tropical depression (#18) has developed south of Cuba early Saturday and could become Tropical Storm Philippe later in the day. The storm was forecast to dump heavy rains over El Salvador, southern Guatemala and southern Honduras, threatening flash floods.

Microsoft reveals Games with Gold titles for November 2017
When we come to the Xbox 360 , the line up of games consists of Nights into Dreams , a 2012 HD remake of a 1996 Sega Saturn game. As usual, you can play both Xbox 360 titles on your Xbox One , thanks to the console's backward-compatibility feature .

Kylie Jenner shows off her Halloween makeup - from the chest up, natch
Last month, she was also photographed with her sister, Kourtney and Kim, but she stood behind them to cover her bump. Thompson, who seemed to be letting loose in a lot of the footage, looked like he was having the best time ever.

Shooting leaves one dead on University of Utah campus
The university advised those on campus to shelter in place and issued a campus alert Monday about 9 p.m. Boutain is also wanted for questioning in the death of a 63-year-old man in Golden, Colorado.