News Details

( 03 Nov 2017)
Unilever to acquire TAZO brand from Starbucks

Unilever announced an agreement to acquire the TAZO® brand from Starbucks. TAZO® is a leading brand in the fast-growing specialty tea category.

Under the asset purchase agreement, Unilever will acquire the TAZO® brand and all related intellectual property, signature recipes and inventory for US$384 million. The transaction represents a multiple of 10 times pro forma EBIT. TAZO® had sales of USD 112.5 million over the past year.

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 USD 1.6 billion (FY 2016) 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.