Starbucks sold Tazo to Unilever

Starbucks, a prominent player in the coffee and beverage industry, made a strategic decision to sell its Tazo tea brand to Unilever for $384 million. This move was part of Starbucks' broader strategy to streamline its product offerings and focus on its core coffee business. Tazo, known for its diverse range of herbal and specialty teas, had been part of Starbucks' portfolio since its acquisition in 1999. The sale to Unilever, a global consumer goods company with a strong presence in the food and beverage sector, allowed Tazo to leverage Unilever's extensive distribution network and marketing capabilities. Following the acquisition, Unilever aimed to enhance Tazo's market presence and expand its reach in the growing tea segment, which has seen increasing consumer interest in premium and specialty teas. The sale also coincided with Starbucks' introduction of Teavana teas into its stores, indicating a shift in focus towards a different tea brand that aligned more closely with its retail strategy. In early 2018, Starbucks further consolidated its tea offerings by shutting down Teavana, signaling a clear pivot in its beverage strategy and a commitment to its coffee-centric identity. This transition reflects broader trends in the beverage industry, where companies are increasingly focusing on core brands and optimizing their product lines to meet changing consumer preferences.