In its recent shareholder’s meeting, Starbucks Corporation announced that it plans to launch is Teavana brand across EMEA and China/Asia Pacific by the end of this fiscal year. (Fiscal years with September.) The brand has grown successfully in the U.S. and Canada and recently generated growth of 17% in its tea segment over the prior year. Building on this success, Starbucks is now planning to expand Teavana into other regions. According to the company, tea is the second most consumed beverage in the world, next to water, with a global market size of nearly $125 billion. Recently, Starbucks streamlined the management of its Teavana division as a part of a plan to increase its tea sales to $3 billion over the next five years. While tea could be a growth opportunity for Starbucks, driving revenues for this segment in China can prove to be challenging for the company as it tries to establish itself in the traditional tea-drinking nation.
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