Starbucks CFO hints at dual strategy for Teavana
Speaking at the Jeffries Global Consumer Conference in Nantucket, Troy Alstead, chief financial officer and chief administrative officer for Starbucks, set out the company's vision for the newly acquired tea retailer. The company is likely to adopt a dual approach with Teavana. First, it plans to expand the number of stand-alone stores starting this fall. Second, it will widen the availability of Teavana's products in Starbucks stores, thereby creating another occasion to visit them. Because tea is usually consumed at a different time of the day than coffee, it should attract visitors in the afternoon, evening and on weekends, when coffee consumption is relatively low. Tea aside, Starbucks' focus will also shift to food items purchased with beverages, such as lunch and afternoon snacks, as Alstead conceded that food quality had previously fallen short of customer expectations.