Add-on Acquisition • Beverages

Starbucks Acquires Tazo Tea Co.

On January 13, 1999, Starbucks acquired beverage company Tazo Tea Co.

Acquisition Context
  • This is Starbucks’ 1st transaction in the Beverages sector.
  • This is Starbucks’ 2nd transaction in the United States.
  • This is Starbucks’ 1st transaction in Oregon.
Investment Fate
  • Tazo Tea Co. was divested to a consortium of strategic buyers in 2017 for 384M USD.

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M&A Deal Summary

Date January 13, 1999
Target Tazo Tea Co.
Sector Beverages
Buyer(s) Starbucks
Deal Type Add-on Acquisition

Target Company

Tazo Tea Co.

Portland, Oregon, United States
Tazo Tea Co. is a manufacturer and distributor of ready-to-drink tea. Tazo Tea Co. was founded in 1994 and is based in Portland, Oregon.
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Buyer Overview 1

Buyer

Starbucks

Seattle, Washington, United States

Category Company
Founded 1971
Sector Beverages
Employees361,000
Revenue 36.2B USD (2024)
DESCRIPTION
Starbucks' corporate headquarters in Seattle, Washington.
Starbucks' corporate headquarters in Seattle, Washington.

Starbucks is a roaster, marketer, and retailer of specialty coffee. Starbucks purchases and roasts high-quality coffees that the Company sells, along with handcrafted coffee, tea, and other beverages and a variety of fresh food items, including snack offerings, through company-operated stores. Starbucks also sells a variety of coffee and tea products and licenses its trademarks through other channels such as licensed stores, grocery, and food service accounts. Starbucks was founded in 1971 and is based in Seattle, Washington.


Deal Context for Buyer #
Overall 2 of 10
Sector: Beverages 1 of 5
Type: Add-on Acquisition 2 of 9
State: Oregon 1 of 1
Country: United States 2 of 9
Year: 1999 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1998-04-29 Seattle s Best Coffee

Seattle, Washington, United States

Seattle's Best Coffee is a provider of specialty coffee franchises in 12 countries. The company provides whole bean, roast and ground packaged coffee, and K-Cup pods are available in a variety of roasts and flavor profiles across both foodservice and grocery channels. Seattle's Best Coffee is based in Seattle, Washington.

Buy $84M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-04-16 Seattle Coffee Company

Seattle, Washington, United States

Seattle Coffee Company includes the Seattle's Best Coffee(R) (SBC) and Torrefazione Italia(R) Coffee (TI) brand. Seattle's Best Coffee (SBC) was founded in 1970 and is one of the oldest brands in the domestic specialty coffee business. All coffees are selected from some of the highest quality Arabica beans throughout the world, and are roasted using Northern European roasting techniques. SBC produces a complete line of whole bean and ground coffees including Organic and Fair Trade coffees as well as flavored coffees.The Torrefazione Italia Coffee brand, founded in 1986, mirrors the unique roasting preferences of various Italian regions. These classic Italian coffees are known for their full bodied, highly aromatic and intense flavor. Torrefazione whole bean coffees include Venezia(TM), Milano(TM), Perugia(TM), Palermo(TM), Montecatini(TM), Roma(R), Sardegna(TM) and Napoli(TM).

Buy $72M