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Starbucks CEO: It's tea time

October 25, 2013

New York City's Upper East Side is the first market to test Starbucks' Teavana Fine Teas + Tea Bar. The bar, which opened this week, is supposed to elevate the premium tea experience by delivering handcrafted tea beverages, premium loose leaf teas, tea-inspired food offerings and tea merchandise, said CEO Howard Schultz in a company press release.

"Tea has been a part of Starbucks heritage since 1971, when we were founded as Starbucks Coffee, Tea and Spices, and this new store concept elevates the tea experience in the same way we've done for coffee," he said. "As the second most-consumed global beverage behind water, tea presents a $90 billion global market opportunity, and we are excited to celebrate the first retail example of how our two companies are coming together."

Almost one year after its acquisition of Teavana, at a time when America's interest in tea has grown by 16 percent over the past five years, Starbucks and Teavana have built an immersive experience to inspire tea drinking, Schultz said.

He calls Teavana Fine Teas + Teavana Tea Bar, at 1142 Madison Avenue in New York, a modern tea bar with a wide range of unique hot brewed and iced teas, tea lattes and distinctive sparkling and tea fusion beverages. The Teavana "Wall of Tea" will feature a wide range of loose leaf teas and tea blends, and the store will have a collection of curated tea merchandise.

Additionally, customers may choose from a range of food items, all inspired by and designed to complement tea flavors, including pastries and breakfast items, salads, flatbreads and small plates, as well as macaroons, shortbreads and other desserts.

Over the course of the past year, Starbucks has leveraged a number of its unique assets and capabilities into the Teavana customer experience — including social, digital media, loyalty, card and mobile. The first Teavana Fine Teas + Tea Bar will bring together Starbucks' strengths in store design and customer experience, with Teavana's deep expertise in tea sourcing and blending, said said Cliff Burrows, Starbucks group president, Americas, Europe, Middle East and Africa and Teavana.

"By selecting only the finest premium loose leaf teas and botanicals to be sold in Teavana mall stores, Teavana has built a strong reputation among tea enthusiasts and introduced casual tea drinkers to new experiences in tea," he said. "The Teavana Tea Bar is a critical first step for us to meet the needs of tea drinkers everywhere by providing a place where tea enthusiasts and casual tea drinkers alike can learn about, enjoy and share in the tea experience."

The new tea bar experience will eventually expand to additional stores over the course of the next year.

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