LMK Article: Starbucks purchases Teavana in an eye opening acquisition.

Find out more on the acquisition by clicking on the link below and reading the article I wrote and submitted.

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http://www.lmk.com/blog/starbucks-purchases-teavana-eye-opening-acquisition

Starbucks   and Teavana 

Starbucks Purchases Teavana in an Eye Opening Acquisition

Starbucks Corp. will be expanding its selection of tall, grande and venti beverages to include more tea on their menu. On November 14, 2012, it was announced that the Seattle based company was purchasing Atlanta-based Teavana Holdings Inc. for $620 million, making Teavana the biggest acquisition made by Starbucks. Back in 1999, Starbucks purchased Portland based Tazo Tea for $8.1 million which currently generates $1.4 billion a year.

In 2011, Starbucks redesigned its famous green twin-tailed siren logo. By dropping the words “Starbucks Coffee” from their motif, Starbucks was showing the world they weren’t just about coffee. They were creatively expanding in order to sustain revenue growth with their instant coffee, energy drinks, juice, foods, single-serve brewer and making their products available in grocery stores. Now with the purchase of Teavana, Starbucks is looking to strongly appeal to and enhance the tea drinking experience for millions of tea drinkers in the world and take a strong stand in a $40 billion global tea market.

Teavana, a company specializing in fresh, high-quality tea and tea accessories, was founded in 1997 by Andrew Mack and his wife, Nancy, who invested their life savings into the teahouse concept after traveling abroad and noticing how Americans gravitated towards fine wines and coffees. Teavana sells more than 100 varieties of loose-leaf teas and currently has about 300 stores in U.S., Canada and Mexico, located mainly in higher-end retail shopping malls.

Starbucks Chief Executive Howard Schultz told Reuters that, “In addition to opening stand-alone Teavana stores in the United States and abroad, Starbucks will add tea bars that serve prepared drinks in existing Teavana stores.”

The CEO and co-founder of Teavana, Andrew Mack, said, “Being part of Starbucks will give us access to incredible industry knowledge and know how as well as the financial strength to super charge our business and allow us to continue our rapid growth to the benefit of all our supporters including our dedicated employees worldwide."