Starbucks expands its business with tea distribution

Starbucks Corp. extended its push beyond coffee with its largest-ever acquisition, saying Wednesday that it plans to pay 15.50 per share, or 620 million USD cash, for Atlanta-based tea retailer Teavana Holdings Inc.

Chief Executive Howard Schultz said his company will try to bring a Starbucks-like experience to Teavana, with a tea bar offering customized hot and cold tea drinks. The chain currently sells most of its tea in loose-leaf form for home consumption.

Mr. Schultz also said Starbucks plans to open more Teavana outlets in urban locations other than malls, where the chain now has most of its 300 North American stores. “We will do for tea what we did for coffee,” Mr. Schultz said in an interview, stressing that the planned acquisition isn't a sign that Starbucks' core business is slowing. (MTI)