"We continue to see significant growth in our tea business through our Teavana brand, and this transition supports our strategy to elevate the premium tea experience for our customers", Johnson added. Tazo is sold primarily in grocery, mass and convenience channels in the United States and Canada, and it is offered in formats including packaged teas, K-Cup pods and bottled ready-to-drink teas.
Starbucks also reported earnings for its fiscal fourth quarter of 2017 on Thursday, which left investors underwhelmed as it delivered worse-than-expected sales figures.
Tazo was founded in 1994, and purchased by Starbucks in 1999 for $8.1 million.
With its strong appeal to millennials, TAZO is a flawless strategic fit for our USA portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington's. The brand pulled in $112.5 million in revenue over the past year and UL believes that there is room for more growth.
For the three months ending October 1, net revenue fell slightly short: $5.7 billion against the Street's estimation of $5.8 billion.
On the company's quarterly call, Starbucks said it would launch a co-branded Chase Visa credit card this winter. After excluding the effects of hurricanes Harvey and Irma - which mauled Texas and Florida during the quarter and forced Starbucks to close a total of 1,100 locations - same-store sales growth was 3 per cent. Overall, the company reported net income of $788.5 million, or 54 cents per share, in the three months ending October 1.
The Seattle-based coffee giant made the announcement moments before it released its fourth-quarter earnings Thursday. But its same-store sales came lower than expected and, in the United States, fell far short of its historic 5% growth rate.
Global same-store sales increased 2%, fueled by a 2% increase gain in the average ticket and a 1% increase in the number of transactions.
In the long-term, the company is targeting annual global comparable-store sales growth of 3 percent to 5 percent and annual consolidated net revenue growth in the high-single digits.