Article Review – Starbucks Tea Deal Develops Aftertaste

This article, publicized in the Wall Street Journal on December 9th, 2012 is about Starbucks and it’s move to acquire the small business Teavana Holdings Inc. Starbucks had already acquired the Tazo Tea brand from this same company back in 1999 for $9 million. This new reported deal would be worth $620 million which would be the largest ever acquisition by Starbucks. There has been a lot of speculation by analysts to whether or not this is a smart move for Starbucks. Most analysts think that Starbucks has better options within the global tea market. Starbucks’s CEO Howard Schultz is staying with the stance that “the two brands can help drive customers to one another by uniting their customer loyalty programs, social-media efforts and mobile applications.” Starbucks also believes that “Teavana’s moneymaking potential from its current form is a big plus.” In the long run I think this deal will have a positive effect on Starbucks as a company as well as the market value of the company.


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