Do you think Teavana could replace the Tazo Tea offerings inside the Starbucks retail stores?
Last December, Starbucks purchased Teavana, making it a wholly-owned and operated subsidiary, along side Evolution Fresh, La Boulange, Seattle’s Best Coffee, and Tazo. Since that time, (in April this year) Starbucks has introduced a Teavana-branded Starbucks card, and added My Starbucks Rewards stars for purchases made inside Teavana stores. On July 25, 2013, Howard Schultz was quoted as saying, “Over time, many unique hand-crafted Teavana tea beverages will also find their way into Starbucks stores.”
So it is no surprise to hear that Starbucks has already begun testing in a small number of Atlanta Starbucks locations. Those stores now offer Teavana tea beverages, having launched Teavana in stores with the fall launch beginning on September 4, 2013, and removing Tazo tea from the retail wall.
In the Starbucks stores testing Teavana, hot tea options now include English Breakfast, Earl Grey Creme, Emperor’s Clounds, Jade Citrus Mint, Youthberry, Maharaj Chai Oolong, Passion Berry, and Pineapple Kona Pop. I’m familiar with some of those teas as I have made them at home. The Jade Citrus Mint reminds me of the Tazo Mintly Citrus which used to be available at the now-closed Tazo Tea store. Pineapple Kona Pop makes for an amazing iced tea, and I have made it at home many times. I last mentioned Pineapple Kona Pop in this article here. All of the teas are individually packaged.
The retail wall also has loose leaf Teavana tea available for purchase:
Also, I have heard that the stores offering Teavana teas have the Teavana German Rock Sugar available if you should want to sweeten your tea with it.
What do you think? Your turn to weigh in. There are aspects of this that are wonderful. Having tried a number of Teavana teas, I know they’re great – and a number of the tea blends work wonderfully iced. I am sentimental about Tazo though. Somehow, I would be a little sad to see it gone from the stores, should Teavana ever launch nationwide at Starbucks stores. It’s my understanding that if you want iced tea, you still get the standard black, green, or passion iced teas, but now baristas refer to them as “Starbucks teas,” rather than calling them Tazo teas.
If you like reading about the many things that Starbucks tests, you can read about more tests here. Last but not least, I enjoy featuring reader-submitted photos, whether that is your amazing neighborhood Starbucks, a coffee event, or what have you. I’m sorry but I don’t use every photo that is sent to me, but feel free to email me at Melody at StarbucksMelody dot com, if you have a Starbucks photo that you wish to be considered for this site. Please indicate in your email that you took the photo and that you are giving this site permission to use. Thank you so much!
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Melody I have tried too many of the teavanna teas and I like some of them. I have mixed feelings about SB switching over to these in the stores. The price points for these teas is quite high in my opinion and I am not sure a SB customer would buy a cup of tea. I think people that go to a Teavanna store know their inventory and the cost of the teas and might not know SB purchased the company. Would it be wrong to have both in the store?
Hi Melody!
I hope that we all switch over to Teavana teas soon. I find the quality to be better and the variety as well. I love the Pineapple Kona Pop hot or iced. Teavana has over 50 varieties of tea which would give us so many possibilities.
Based on the menu board you posted there isn’t that big of a price difference from what we currently sell hot tea for (+$0.50) which I think people would barely notice. I think the real problem would be what happens with the in store iced teas. We sell so many and people are crazy about them especially the passion. I’d love to see the pineapple join that line up but if we axe the others it could brew up some trouble.
Becca I looked more closely at the menu board and given the prices as stated you are correct it is a marginal difference, however, I tend to feel that if they add the more exotic teas in the Teavana line that these prices will not stay as it is posted. I love green teas and drink them all the time, but from my experience with choices at teavana I know SB will raise the prices. Also, agree that passion tea is quite popular and I see many people at my local SB store ask for it.
I think it would be great for Starbucks to start offering Teavana in their stores! Although Teavana stores are good at selling loose-leaf tea, they stumble with the per-cup thing. Pairing Teavana-quality tea with Starbucks efficiency and customization will be a very good combination.
Hi Melody,
Thank you for sharing your information so quickly before I get to know as a Barista in Starbucks Coffee. I am sad to see Tazo Tea leaving us. Also, I really enjoy calm tea. Do Teavana have them?
Thanks
@Violet Sorry this is short and sweet – I am on my way out the door to work. I would still describe this as being in the testing phase, so I wouldn’t say for sure that it is a done deal. I don’t know of any Teavana equivalent of Calm. Sorry. 🙁
Could it be that Teavana will be the tea at Clover stores and Tazo be the tea in the rest? Or Tazo becomes the grocery store tea and Teavana is only available in Starbucks stores?
I have also done a little searching in the business world and their is no readily apparent buzz that Tazo is for sale.
In my experience, Teavana Teas are very sensitive to proper brewing temperature and time (various times and temps for each tea) for optimal flavor. Not going to work well with the drive-thru crowd.
I think Tazo should stay in the Starbucks stores and Tevana stay in it’s own stores. DadCooks may have a good idea about having Teavana at Clover stores though. Good point about brewing temps and times too. Just not good for drive thru.
I love Teavana and think that it is a great addition to the Starbucks line-up! This is just another way that Starbucks it staying ahead of the competition and getting back to it’s roots, now if only they would bring back the spices…
LOL – Nathan – All they need to do now is buy a spice company! I think Teavana has the possibility of elevating the tea experience inside the stores. It’s just with Tazo, there were things available at the Tazo store that were just beloved loose leaf teas. I’m sad that that kind of Tazo experience is totally gone. Brambleberry, Berry Blossom White, Luminescence, and more.
I somewhat agree with what DadCooks has said. I think it’s possible that Tazo could become just their grocery store tea. Let’s face it! Tazo is popular even without the love of the Starbucks crowd. But I think, at least for now, Tazo isn’t going anywhere anytime soon. Personally…. I think Teavana would be better served by remaining separate from Starbucks. Based on the size and way most Starbucks stores are currently operated and setup, I don’t see how they would find the space to introduce tea, the way Teavana’s tea’s should properly be prepared. Howard ought to leave it alone. Why does Teavana need to be introduced in Starbucks? It works well the way it is, in a Teavana store. I think they should remain independent of each other, but that is just my opinion.
For me personally I don’t go into Starbucks to buy tea. I feel that they already overcharge for tea and therefore an extra £/$0.50 is quite steep.
How about a small area off to the side selling Teavana. I went to a Teavana store in the mall a few years ago and discovered there that loose leaf tea is wonderful. (Not a tea drinker). They had little sample cups out front as we went by. I left that store spending $60.00. I’d love to know that I could go to Starbucks to buy more. Samurai Chia Mate and White Ayurvedic Chia are my choices.
I have to admit that I have never tried any Teavana products. I am a bit obsessed with the Tazo line- the Earl Grey is hands down my favorite tea ever- and don’t think I want them to replace it! In the winter months, an Earl Grey tea is almost exclusively what I buy when we go to starbucks. With that being said…I would still go to Starbucks if they phased the Tazo out. It’s not like they could ever lose my business!
Rumour has it that there will be both teavana and tazo stores in the future. I certainly hope so, as both subsidiaries are wonderful in their own right…
I have yet to hear any actual facts on the situation with Teavana. I would be saddened if Starbucks stopped offering Tazo all together, but would understand if they started selling Teavana within Starbucks stores. I don’t really see Tazo disappearing, I would think that if Teavana were fully introduced into grocery stores, it might cheapen the appeal of the brand. Anything is possible I suppose, but I’m sure we’ll see both products offered in the future. Just how they will be offered together – only time can tell. I’m eager to hear for sure!
I am sorry that it took ours to get back to you two.
@DouglasWieboldt – I just can’t imagine that there will be both stores. But of course, I don’t know. I think it would be easier to develop and grow an existing base of stores (the Teavana stores – about 300 of them?) then create a new chain.
@Tophism -My guess (and that’s what it is, a guess) is that Tazo will become a CPG (grocery store) brand and Teavana will take over in the stores. You’re right though – time will tell.
@Chris – I know a few people who think just like you! My boss is avid Starbucks tea drinker (hot tea) and complains about the price. But all those beverages – hot tea, iced tea, hot brewed coffee, and iced coffee – all have high profit margins!
@Chgo – I have thought that you are right – with space constraints of many stores, if Teavana is introduced, it will use up more retail space than what tea has now.
Such great comments in this thread – I am sorry that I have not replied to every one, but I think the conversation here is interesting.
I had thought this the moment I heard that Starbucks was purchasing Teavana. I think that Starbucks will sell/brew Teavana in stores and Tazo will be sold/brewed at Seattle’s Best and CPG. By separating the brands you can attract different demographics.
As a former Barista I wonder how or if there will be a fix in store for brew temperature for teas. If they want a luxury tea product, a good start is to have it brewed at the right temperatures.
@Jetblue711 – Makes sense. And besides, there is some history of Starbucks kind of doing this sort of thing. Seattle’s Best is leveraged as a more approachable, less expensive brand than Starbucks. Tazo could be positioned the same way. Starbucks has experience in using varying brands to attract different demographics.
As to the right temperature to brew tea in stores. I have no idea. There must be a way.
If Teavana comes into the Starbucks stores what happens with all their merchandise? Starbucks carries some merchandise for coffee and tea but nothing compared to what Teavana does. They have two full walls of cups, etc. Then there’s a person walking around trying to hard sell it. I think to have Teavans in a Starbucks store it would almost have to be two stores in one. It’s just a different experience between the two. I actually wouldn’t hate to see my local Starbucks have the adjoining bank move out and have a Teavana store on that side.
@Becky E – I think the thinking is that Starbucks would greatly grow the number of retail Teavana stores and bring a limited number of Teavana items into the Starbucks stores as retail merch. Even if they brought just a small amount of merchandise in though, it could end up being a lot more retail space than the Tazo lineup. But I don’t think we will ever see two full walls of tea cups at Starbucks, imho.
Quick Fast and Dirty;
1. they bought tazo and neglected it, i’ve thought they will fold tazo into teavanna since the purchase not surprised
2. teavnna markup is high because of malls, they can eat the lower profits in the stores as it is already space they have
3. teavana purchased online middleman special teas which has many fine non-fruit added over flavored nonsense which they must still have access too. i hope they offer these as it would be a good replacement for the tazos offered now on the menu (pick 3-5 core teas and offer only those made in store and pre-packed).
4. spread lose leaf tea love please – teavanna is the gateway drug to loose leaf teas and having starbucks do loose leaf as well would rock
5. i am afraid they will keep up with the over flavored teas 🙁
6. are they still using hot hot water, that must make the poor white and green teas aweful!
I am also wondering what will happen to the Tazo Chai Tea Lattes? My mom adores them. I hope they keep the same flavor profile for them, even if they take the Tazo name off of them!
As long as they don’t adopt the hard-sell practices in Teavana stores! After one horrendous experience, I refuse to go back there.
I too feel when going into a teavana store that the atmosphere is one where I am not really welcomed unless they feel I will buy some tea. I do like some of their teas though but wish as Judy commented their approach to selling was different.
@Marsh I was thinking the same thing- I’ve actually never been to a Teavana store, and I don’t go to Starbucks for regular brewed hot tea, but if they mess with my delicious Tazo chai (tea latte) there will be hell to pay! 😉
There are 12+ stores in Atlanta GA currently using Teavana teas exclusively and it is an unmitigated disaster. They are only offering Earl Grey Creme, it is overly fragrant with very sweet after taste, the Chai tea is overwhelming with cinnamon and cardamon and the breakfast tea tastes like soapy dishwasher. It is so bad I have been driving 30+ mins to other Starbucks that still serve Tazo. bring Tazo back!!!!!
Something is obviously in the works as I recently noticed the name tazo has disappeared off the chai tea bags and has been replaced with Starbucks tea, as well In the recent post about the about iced sweet tea there is no mention on Tazo in the in store marketing materials…
although I am biased towards loose leaf tea, I think it might be difficult for many smaller Starbucks to keep large containers of a variety of loose leaf flavours. They would most definitely have to begin producing pre-bagged tea if Starbucks is going to implement teavana tea as a regular feature. The only issue I have with Starbucks taking over teavana is that they no longer sell my favourite flavour, Aztecs Gold.
Melody, my guess is that Starbucks will view Tazo as their $1.5 billion CPG brand and teabag line, explore Tazo RTD offerings and elevate the visibility of Teavana products in-store (as you see in the packaging switch and menu) to see if they can increase menu prices 50 cents or more per cup. Teavana’s line is flexible enough to blend teas that replicate the most popular in-store Tazo selections.
Alternately Tazo could become the equivalent of the bartender’s “well brands” supplied to stores in bulk to make lattes and common iced drinks. Teavana would be the “call” brand.
Teavana loose leaf might appear in pots with timer and table service as you see at Coffee Bean & Tea Leaf. Has anyone examined the Teavana teas served in pyramid bags? Is the packaging bio-degradable. Has anyone seen a tea wall (or teaware display) in a Starbucks? Would love to include a photo in my beverage business blog.
I believe the new Teavana retail format will have extensive displays, lots of touch points for customers to smell and sample and perhaps even custom blend teas (as they did in the Seattle Tazo store). It will be the relaxing alternate to frenzied mornings at Starbucks, the ideal location to unwind in the late afternoon and evening and very likely be a community gathering spot for those learning about tea.
Snap a shot as soon as you see one. The Upper East Side location in NYC should be open within 30 days and the old Tazo shop in Seattle will be unveiled as a Teavana shop about the same time.
Dan
Every change Starbucks makes is for the worse. The individually brewed Teavana’s teas come out so watery. Tazos teas were much stronger in flavor.
I am a barista in the Atlanta area and I do not think the switch will be a wise one. We have already received boxes of Teavana Tea and honestly, I find these teas to be inferior to Tazo’s. While I am sure Teavana tea stores sell a different kind of beverage, the individual tea bags yield a much less strong taste than Tazo’s. The result seems to me like flavored water. Our location sells a large amount of tea and while some of the new Teavana options are complimentary to Tazo’s, things like the Calm tea have no equivalent. This particular herbal tea sells well at our location. I have heard it said that Teavana tea bags require a longer time to steep. When I sampled the Kona Pineapple flavor, I found that I had to wait 20 whole minutes before the pineapple was even detectable in the taste. For a ‘to go’ coffee shop, as Starbucks is, such a long time needed to obtain optimal infusion is not conducive to the clientele in my experience.
I prefer the Tazo teas. I wish they would at least offer the option. I’m in the test area in Atlanta, so Tazo is already being phased out. Wah.
I understand – there are some Tazo teas that I really like (though there are a few Teavana teas that I really like too). But from everything I heard, all the bags of tea (for hot tea) will switch pretty soon to Teavana, and it’s possible that long-term there might not be the Tazo Iced Passion, Black, and Green tea but that’s still much more uncertain what will happen there.
I too am in the Atlanta area, and have been to a test store. I am a Tazo Zen drinker and was greatly disappointed by the Jade Citrus Mint tea the barista recommended as a comparable option. I believe the recommendation was based on the fact that of the Teavana teas on offer, this was the closest, and not because it was actually comparable. My wife is a Chai Tea Latte drinker, I’m a Zen drinker, and we both fear Starbucks is fast approaching the status of being a place we once patronized.
I’m really upset at Starbucks. I went to get my usual zen tazo green tea that I get every morning and I was informed they no longer carry it and was given the new “green tea ” . It didn’t taste like green tea it tasted like peppermint tea. They have no other option besides this supposed green tea that is nothing like the zen. If this is just a test in the Atlanta market I hope they get the feedback and bring back the green tea from tazo or at least bring in a green tea that tastes like green tea and not a candy cane.
When do you think the switch over to Teavana will kick in across North America? My best bet is spring or summer.
@CD – Soon. I’ve heard tons of talk about both Tazo tea bags and Tazo Passion, Green, and Black teas being on the way out the door. I think we may be surprised how soon it will happen. Spring isn’t an unreasonable bet!
Starbucks is going to lose lots of tea lovers. Just visited Atlanta and ordered an earl grey and got something awful rather than a wonderful earl grey tazo tea. Had to return it. The teavana version of earl grey tastes terrible. I can only hope this is an experiment and not going nationwide.
hey I went to SB to get a Black Tea Lemonade Iced…and they were out! the Barista told me starting tomorrow(Monday 3/10) they are switching to Teavana Tea and thinks they are switching the lemonade….this is on Long Island, NY
hey I went to SB to get a Black Tea Lemonade Iced…and they were out! the Barista told me starting tomorrow(Monday 3/10) they are switching to Teavana Tea and thinks they are switching the lemonade….this is on Long Island, NY
My location in the Dallas metroplex got in our new iced tea bags, all of which are for Teavana. In the next week or so, we will switch over to Teavana iced tea exclusively. I haven’t heard about a lemonade switch though. I do hope the new Passion Tango tea really is comparable to the old Tazo Passion tea. I gotta have my PTL!
I get green iced tea everyday from Starbucks. At the Breezewood, PA location today, my tea looked much weaker than it did just yesterday (at another location). The Batista told me they just switched to Teavana. I looked at him and told him it looked like dirty water. I looked forward to my daily tea, but if they are replacing with this weak version, I guess I’ll be headed to Dunkin Donuts.
Not especially thrilled with the change. Found out today that Starbucks switched the iced teas to Teavana. The green wasn’t too bad. A bit more minty but the hot teas are not a good product – extremely weak. The teas are fine if you have real time to spend brewing them but “on the go” does not translate. How did this manage to survive testing? Bottom line: I’m going to stock up on my Green Tea iced tea bags and just switch to always drinking what I brew at home. Just need to keep a couple of bottles of Classic. I just don’t understand why they don’t get “If it ain’t broke DON’T FIX IT!”
I guess I am the latest victim of the departing Tazo chai tea latte. Two kids in front of me ordered chai tea fraps and complained almost immediately about the taste. I ordered a chai tea latte and knew exactly what they were complaining about. I could not get the sick, sweet taste out of my mouth for almost three hours! Yuk!
I personally work at a Teavana store and find the choices a bit interesting. Also the fact that Starbucks is brewing our tea in a bag in stores, even if it’s still looseleaf, disregards the whole point of looseleaf tea and what Teavana is. I really wish they would have blended some of those teas, like we do. The chai wouldn’t be too strong for those who love Tazo and be an easier transition.
Also, for those of you worried that us salespeople that follow you like a puppy in our own stores will be there hiding in Starbucks to push our teas, it’s not going to happen.
Very unhappy about the switch to Teavana. The iced black tea is weak in comparison to the Tazo. 🙁
I stopped going to Starbucks the morning I tried the new Opra chai tea latte. I did not like it as much as the Tazo chai latte. Now I buy the Tazo chai in the grocery store and make it at home. I hope their strategy doesn’t include getting rid of Tazo on store shelves or worse yet, getting rid of it altogether.
the only reason i go to starbucks has been for the TAZO awake. i have encouraged many others to go there for it as well. recently, i noticed the tea had very little or no flavor. i thought they must have increased ice and decreased tea. i finally found out they had switched to teavana. : (
i will no longer frequent starbucks nor will i encourage others. i can only get the mesh bags at starbucks though. our grocers only have the paper tea bags. i will be trying to find out how to get the loose leaf nylon mesh bags. TAZO awake is what my family and friends get for me for birthdays and Christmas. i am quite very disappointed and don’t understand why anyone would prefer a tea that tastes pretty much like nothing. : /
I KNEW IT!
I tried the greentea lemonade before the switch to Teavana and fell in love with it!
The last few times I’ve gotten it the tea was so weak it just tasted like lemonade. I am not a Teavana fan at all! I love teas and order them from several companies. But Teavana is over priced and weak! I’ve been so disheartened by Starbucks switch that I’ve been making it at home!
Tazo’s greentea is my summer drink and Starbucks just lost a customer…