Unilever has announced an agreement to acquire the TAZO brand from Starbucks for US$384 million. Earlier this year, Starbucks announced that it would be exiting the Tazo tea business to concentrate on its super-premium Teavana brand.
Founded in 1994, TAZO has a strong position in specialty Black, Green and Herbal teas, as well as liquid concentrates focused in the Chai Latte segment. TAZO is sold primarily in grocery, mass and convenience channels in Canada and the U.S., and is offered in packaged teas, K-Cup pods and bottled ready-to-drink teas.
Kees Kruythoff, president, Unilever North America, says the TAZO brand has a strong appeal to Millennials. The transaction is expected to close by the end of the year.