News

Starbucks, Pepsi and Unilever partner to grow Tazo Tea

August 19, 2008

SEATTLE — Starbucks Coffee Co., PepsiCo Inc. and Unilever have jointly announced a licensing agreement for the manufacturing, marketing and distribution of Starbucks' Tazo Tea ready-to-drink (RTD) beverages — including iced teas, juiced teas and herbal infusions — in the United States and Canada.

Tazo's RTD line will be integrated into the Pepsi/Lipton Tea Partnership (PLP), expanding the joint venture between PepsiCo and Unilever. Established in 1991, the PLP is the leading distributor of RTD tea products in the United States. Tazo has created more than 100 tea, fruit and herbal beverages in bottled, filterbag, full leaf and tea latte concentrate varieties. All Tazo tea blending is done at Tazo headquarters in Portland, Ore. Acquired by Starbucks in 1999, Tazo is the exclusive tea offered at Starbucks coffeehouses worldwide and at Seattle's Best Coffee cafes in the United States. Kraft Foods, which previously distributed the Tazo RTD product line as part of its 10-year relationship with Starbucks, will continue the momentum it has built marketing and distributing Tazo filterbag teas and tea latte concentrates, as well as Starbucks and Seattle's Best Coffee packaged coffees in non-cafe channels.