Starbucks eyes transformation of tea industry

Starbucks eyes transformation of tea industry

It’s the latest attempt by the ubiquitous green and white brand to diversify their offerings and move away from coffee, a commodity the company has openly admitted is dwindling with the effects of climate change.

Scientists have been warning that extreme weather, drought, hurricanes and resistant bugs have been wreaking havoc on coffee supplies, driving up prices and posing a serious threat to the survival of the Arabica coffee bean.

Meanwhile, the $620 million acquisition of Teavana adds to the company's existing line of Tazo teas. The plan, the company says, is to “elevate” the tea experience, enter new categories and innovate with new products.

That means expanding Teavana's current mall-based units into neighborhood locations in markets across North America and around the world. Recently, Teavana opened its first store in the Middle East.

The retailer specializes in premium, loose-leaf teas and tea-related merchandise.

This summer, Starbucks also acquired French-style bakery La Boulange that will see croissants, pastries, loaves and breads line their store shelves in the US.

The company also branched out into the freshly squeezed premium juice business, opening juice bars in the US.

Their ready-to-drink energy beverage Refreshers made with fruit juice and green coffee likewise launched this year.