New Teavana® premium
Ready-to-Drink line of teas will capitalize on fast-growing, multi
billion-dollar ready-to-drink tea category1
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.
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Starbucks and Anheuser-Busch announce
they are working together to launch the first Teavana
Ready-to-Drink (RTD) Tea with broad distribution in the U.S. in
2017. Starbucks retail stores nationwide currently serve premium
handcrafted Teavana brewed and iced tea, which is a high growth
category at Starbucks. (Photo: Business Wire)
Premium RTD tea is the fastest-growing segment in the RTD tea
category, which grew at 16% CAGR over the past five years and
generates $1.1 billion in sales2. 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 sales3.
“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 category1.
Following today’s announcement, Anheuser-Busch and Starbucks
expect to finalize definitive agreements by the second half of
calendar year 2016.
1 Euromonitor International Soft Drinks in the U.S.
study published March 2015 2 Beverage Marketing Corporation report
September 2014 3 Based on net sales of handcrafted Teavana tea
beverages from Q2FY15 to Q2FY16 in Starbucks U.S. retail stores
About Anheuser-Busch
For more than 160 years, Anheuser-Busch and its world-class
brewmasters have carried on a legacy of brewing America’s
most-popular beers. Starting with the finest ingredients sourced
from Anheuser-Busch’s family of growers, every batch is crafted
using the same exacting standards and time-honored traditions
passed down through generations of proud Anheuser-Busch brewmasters
and employees. Best known for its fine American-style lagers,
Budweiser and Bud Light, the company’s beers lead numerous beer
segments. Budweiser and Bud Light Lime Lime-A-Rita were named
Brands of the Year for the Beer and the Spirits, Malt Beverages and
Wine categories, respectively, by Ace Metrix® in 2014.
Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates
19 local breweries, 21 distributorships and 23 agricultural and
packaging facilities across the United States. The company
committed to investing more than $1.5 billion in its U.S. brewing,
agriculture, packaging and distributing operations by 2018. Its
flagship brewery remains in St. Louis, Mo., and is among the global
company’s largest and most technologically-capable breweries.
Visitor and special beermaster tours are available at its St. Louis
and five other Anheuser-Busch breweries. For more information,
visit www.anheuser-busch.com.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in
our stores or online at news.starbucks.com or
www.starbucks.com.
About Teavana
Teavana offers high-quality teas and a unique in-store
experience to new tea drinkers and tea connoisseurs alike. Acquired
by Starbucks (NASDAQ:SBUX) in 2012, Teavana immerses customers in a
full tea experience where they can learn more about the ritual and
enjoyment of tea with products available in more than 350 Teavana
specialty store locations, www.Teavana.com, as well as in Starbucks
stores across the U.S. and Canada. Teavana offers premium tea
accessories and an array of loose leaf teas. For more information,
visit www.teavana.com, become a member of our bold tea community at
https://www.facebook.com/teavana or follow Teavana on Twitter for
our latest updates at https://www.twitter.com/teavana and
https://www.instagram.com/teavanatea.
Forward-Looking Statements
Certain statements contained herein are not based on historical
fact and are "forward-looking statements" within the meaning of the
applicable securities laws and regulations. Generally, these
statements can be identified by the use of words such as
"anticipate," "believe," "could," "estimate," "expect," "feel,"
"forecast," "intend," "may," "plan," "potential," "project,"
"should," "will," "would," and similar expressions intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
statements are based on information available to Starbucks as of
the date hereof, and Starbucks actual results or performance could
differ materially from those stated or implied, due to risks and
uncertainties associated with its business. These risks and
uncertainties include: fluctuations in U.S. and international
economies and currencies, our ability to preserve, grow and
leverage our brands, potential negative effects of material
breaches of our information technology systems to the extent we
experience a material breach, potential negative effects of
incidents involving food-borne illnesses, food tampering, food
contamination or mislabeling, material failures of our information
technology systems, costs associated with, and the successful
execution of, the company’s initiatives and plans, including the
launch of Teavana RTD tea, the acceptance of the company’s products
by our customers, including Teavana RTD tea, the impact of
competition, coffee, dairy and other raw material prices and
availability, the effect of legal proceedings, and other risks
detailed in the company filings with the Securities and Exchange
Commission, including the “Risk Factors” section of Starbucks
Annual Report on Form 10-K for the fiscal year ended
September 27, 2015. The company assumes no obligation to
update any of these forward-looking statements.
Forward-Looking Statement – Anheuser-Busch
This release contains certain forward-looking statements
reflecting the current views of the management of Anheuser-Busch
InBev with respect to, among other things, Anheuser-Busch InBev’s
strategic objectives. These statements involve risks and
uncertainties. The ability of Anheuser-Busch InBev to achieve these
objectives is dependent on many factors some of which may be
outside of management’s control. By their nature, forward-looking
statements involve risk and uncertainty because they reflect
Anheuser-Busch InBev’s current expectations and assumptions as to
future events and circumstances that may not prove accurate. The
actual results could differ materially from those anticipated in
the forward-looking statements for many reasons including the risks
described under Item 3.D of Anheuser-Busch InBev’s Annual Report on
Form 20-F filed with the US Securities and Exchange Commission on
14 March 2016. Anheuser-Busch InBev cannot assure you that the
future results, level of activity, performance or achievements of
Anheuser-Busch InBev will meet the expectations reflected in the
forward-looking statements. Anheuser-Busch InBev disclaims any
obligation to update any of these statements after the date of this
release.
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version on businesswire.com: http://www.businesswire.com/news/home/20160602006468/en/
StarbucksSanja Gould,
206-318-7100press@starbucks.comorAnheuser-BuschCaroline Langdale,
646-495-2705ABMedia@gpg.com
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