A New Flavor Of Iced Tea Essay

1307 Words Sep 25th, 2016 6 Pages
New Product:
In introducing a new flavor of iced tea within Starbucks long line of products has the potential to continue to provide Starbuck’s with brand exposure. “In 2012, there were 160 million Americans who drank tea daily in any form, consuming a total of 3.6 billion gallons, or around 80 billion servings of tea in a whole year” (Trefis Team, 2014). Furthermore, within the third quarter of 2014, it was Starbuck’s CEO, Howard Schultz, who was credit with mentioning “that the company believes the tea market is worth $90 billion and this gives them incentive to transform this segment into a core segment in the long run” (Trefis Team, 2014). More so, fast forward to June of 2016, Anheuser-Busch InBev NV and Starbucks have made an agreement to brew, produce, bottle, and distribute a “ready-to-drink” line of Starbucks Teavana tea (Jargon, 2016).
This arranged partnership is a win-win for both companies, as AB InBev will continue to tighten up capacity at breweries and Starbucks can continue to delve into the tea industry in additional to remaining to be a dominant brand within the coffee industry. According to data provided by the Beverage Marketing Corp., “ready-to-drink” tea is one of the more aggressively growing beverage industries within the U.S. and with a rise of 6.1% within 2015 (Jargon, 2016). Thus, this partnership is a key to moving Starbucks further into the arena of tea. The conception is that Starbucks would develop the new flavors of iced tea; whereas,…

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