Growth coming from different directions at Argo Tea
Chicago-based tea cafe chain Argo Tea is pulled in different directions by the core cafe business and the growing potential of its retail products. The company currently operates over 20 locations in Chicago, Boston, New York and St. Louis, as well as one in Beirut, Lebanon. But recently, most of the growth has been coming from its line of bottled ready-to-drink teas launched just two years ago. The range of 8 flavors currently represents 20% of annual sales of $20million, but that share may reach up to 50% this year thanks to widespread availability in 10,000 retail stores at Walgreen, Safeway and 7-Eleven. For its cafe strategy, Argo Tea will focus on licensing to increase the number of locations in high-traffic areas like hospitals, universities and airports. The company also plans to expand in the Middle East, with outlets in Qatar, Dubai and Kuwait.