Teavana moves into Starbucks stores as Tazo is phased out
Starbucks is phasing out Tazo teas from its outlets and will only sell them in third-party stores from now on. The world's biggest coffee chain will replace mass-market quality Tazo products with a more premium offering from Teavana, a specialty tea retail chain it purchased for $620 million in 2012. According to the company, the move reflects the growing popularity of tea in the US. Tazo will remain in its portfolio, with products confined to grocery stores and large supermarket chains such as Target and Wall-Mart. Starbucks acquired the brand for $8.1 million in 1999. Current sales are estimated to be around $1 billion.