Unilever is targeting the taste buds of tea-drinking millennials with the $384 million acquisition of the TAZO brand from Starbucks.
As per the agreement, Unilever will acquire the TAZO brand and all related intellectual property, signature recipes and inventory.
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.
The fast-growing specialty tea segment makes up 48% of the total $1.6 billion at-home tea category and trends suggest it will become more prominent in the future.
TAZO is sold primarily in grocery, mass and convenience channels in the US and Canada, and is offered in formats including packaged teas, K-Cup pods and bottled ready-to-drink teas.
“With its strong appeal to millennials, TAZO is a perfect strategic fit for our US portfolio,” said Kees Kruythoff, President, Unilever North America.