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Unilever to acquire TAZO Brand from Starbucks for $384 million

Staff Writer |
Unilever announced an agreement to acquire the TAZO brand from Starbucks.

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Under the asset purchase agreement, Unilever will acquire the TAZO brand and all related intellectual property, signature recipes and inventory for $384 million.

The transaction represents a multiple of 10 times pro forma EBIT. TAZO had sales of $112.5 million over the past year.

Founded in 1994, TAZO has a strong position in Specialty Black, Green and Herbal teas, as well as liquid concentrates focused in the Chai Latte segment. The fast-growing specialty tea segment makes up 48% of the total $1.6 billion (FY 2016) at-home tea category and trends suggest it will become more prominent in the future.

TAZO is sold primarily in grocery, mass and convenience channels in the U.S. and Canada, and is offered in formats including packaged teas, K-Cup pods and bottled ready-to-drink teas.

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