Starbucks (SBUX, quote) Teavana Holdings (TEA, quote) is taking a page out of Yum Brands! (YUM, quote) playbook to move into the global nitration tea market to grow SBUX’s 21% of international operating income.
Tea is the second most popular beverage consumed in the world and SBUX sees it’s not all about coffee but rather tea in Asia, and Middle East and Latina America.
The move is part of the Mr. Schultz’s, CEO to broad the company’s revenue focus from coffee to several sustainable revenue streams. Since 2008 SBUX has moved into the instant coffee, juice and even energy drink markets. This past summer enter the single serve market with its own single coffee brewer called Verismo. Yesterday’s announcement $620 million purchase of Teavana is a clear move the coffee retail is serious about moving into emerging markets and Asia tea consuming countries after removing the word “coffee” from the Starbucks logo last year.