Starbucks to sell tepid Tazo tea brand to Unilever

FILE - Starbucks store in New York's Times Square. (AP Photo/Richard Drew, File)

(CBS) – Starbucks is reporting disappointing sales growth at its coffee shops around the world and says it will sell its Tazo tea brand to Unilever for $384 million.

Shares of Starbucks Corp.(SBUX)  fell 6 percent in after-hours trading Thursday.

Starbucks, which bought Tazo about 18 years ago for $8.1 million, says it will now focus on its Teavana line. It says the tea category in Starbucks stores is growing, though earlier this year had announced plans to shut Teavana stores.

The coffee chain also said Thursday that fourth-quarter sales rose 2 percent at its established locations worldwide. Analysts had expected a rise of 3.3 percent, according to FactSet.

WIVB.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Note: Comments containing links are not allowed.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s