Coffee Giant Goes After Lucrative Tea Market

Starbucks CEO Howard Schultz says the coffee company wants to conquer the $90 billion tea market.

April 28, 2014

NEW YORK – "We can do for tea what we've done for coffee," said Starbucks CEO Howard Schultz last week during an interview on CNBC’s "Squawk on the Street," adding that he thinks the tea market is worth $90 billion.

Starbucks has been making moves beyond its traditional coffeehouse beginnings with handcrafted sodas — plans are underway to launch handcrafted [Fizzio] sodas at 3,000 U.S. stores this summer — and tea and alcohol. CNBC notes that Starbucks purchased Teavana in 2012, and it recently partnered with Oprah Winfrey to launch a tea flavor and merchandise.

CNBC adds that Shultz has indicated that he would like to Starbucks offer more lunch items and alcohol at select stores, in addition to Starbucks' breakfast sandwiches and pastries.

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