Starbucks and Anheuser-Busch to Launch Teavana Ready-to-Drink Tea in U.S. in 2017

02 June 2016

imageFrom Anheuser-Busch & Starbucks:

ST. LOUIS and SEATTLE; June 2, 2016 – Anheuser-Busch and Starbucks (NASDAQ: SBUX) today announced that they are working together to produce, bottle, distribute and market the first Teavana Ready-to-Drink (RTD) tea in the U.S., with an anticipated product launch in the first half of 2017.

Premium RTD tea is the fastest-growing segment in the RTD tea category, which grew at 16 percent CAGR over the past five years and generates $1.1 billion in sales.**  Together, Starbucks and Anheuser-Busch will bring their complementary strengths to bear to capitalize on the significant growth opportunity. Starbucks will contribute Teavana’s tea expertise, industry-leading retail activation, and consumer engagement capabilities, and Anheuser-Busch will lead production, bottling and distribution to retailers nationwide in partnership with its long-standing and well-established network of wholesalers.

Starbucks and Anheuser-Busch plan to introduce new Teavana RTD non-alcohol premium tea beverages across U.S. channels. The new RTD product line will integrate the handcrafted nature and epicurean flavors drawn from Starbucks and Teavana’s retail favorites to offer consumers premium layered flavors. Starbucks retail stores nationwide serve premium, handcrafted Teavana brewed and iced teas, which is a high growth category at Starbucks. Within the past year, U.S. Starbucks locations have sold more than $1 billion of handcrafted Teavana tea beverages, representing 11 percent growth in year-over-year sales.***

“Tea has been an important part of Starbucks heritage since we opened our doors as Starbucks Coffee, Tea and Spices in the Pike Place Market in 1971,” said Howard Schultz, chairman and chief executive officer, Starbucks. “When we acquired Teavana in 2012, we saw a unique opportunity to do for tea what Starbucks has done for coffee and expand the Teavana brand across many customer experiences and products. We are excited to work with Anheuser-Busch to unlock the premium ready-to-drink market and further grow demand for the Teavana brand.”

“This arrangement will bring together the strengths of two great companies, each with a long history of successful brand-building,” said Carlos Brito, chief executive officer, Anheuser-Busch InBev. “Starbucks’ expertise and leadership in premium tea, combined with our world-class production capabilities and strong U.S. distribution footprint, will position this new product well in what is an exciting and growing category. We are delighted to be in a position to offer this great product to our wholesalers and believe, with their support, we are ideally structured to maximize the sales opportunity for Teavana RTD tea across the U.S.”

Philip Mullin, chairman of the Anheuser-Busch Wholesaler Advisory Panel, added: “Throughout Anheuser-Busch’s history, wholesalers have played a crucial role in the introduction of new products to the market. This arrangement with Starbucks comes at a very exciting time given the considerable growth in the premium RTD tea category, and I expect this news will energize wholesalers throughout our network.”

According to the Tea Association of the U.S., 80 percent of tea consumed in America is iced tea and tea overall has a global category size of $125 billion, with Americans drinking 800 million cups of tea per week.  This relationship positions Starbucks and Anheuser-Busch to claim market share in the more than $1 billion premium RTD tea category.

Following today’s announcement, Anheuser-Busch and Starbucks expect to finalize definitive agreements by the second half of calendar year 2016.

0 comments (click to read or post):

Post a Comment

Please leave a comment...I do moderate them so it may not immediately appear...and please be nice!

WILK Friday BeerBuzz

2016 NEPA BlogCon Winner

2016 NEPA BlogCon Winner

Lets Talk Beer!

We've added some tools to encourage interaction. First and foremost, you'll see the Recent Comments section up above. This list displays the most recent comments from individual posts. Feel free to comment on ANY post by clicking on the "comments" link at the bottom of any post, or any link in the Recent Comments section. Comments are moderated, however you can choose to post anonymously.

Please also remember mybeerbuzz is very active on Facebook & Twitter and we DO support RSS feeds for posts and comments.

Advertising

mybeerbuzz.com is not affiliated with any of the advertisers shown above. We run Ads as a way to help offset the costs to run this FREE blog....BUT if you do happen to click on any of these ads (even if you don't buy), we do eventually get a few pennies....literally.
Creative Commons License
mybeerbuzz.com by mybeerbuzz.com is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
Based on a work at mybeerbuzz.com.

  © Copyright 2016 mybeerbuzz.com

Back to TOP