Unilever has agreed to acquire the Tazo brand from Starbucks for $384 million as it looks to gain a footprint in the fast growing speciality tea segment in North America.

Tazo is sold primarily in grocery, mass and convenience channels in the US and Canada, and is offered in formats including packaged teas, K-Cup pods and bottled ready-to-drink teas.

Kees Kruythoff, president of Unilever North America, said: “With its strong appeal to
millennials, Tazo is a perfect strategic fit for our US portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington’s. Tazo’s solid position in the fast-growing specialty tea segment, coupled with Unilever’s tea expertise, presents a fantastic growth opportunity.”

President of Refreshment at Unilever, Kevin Havelock, added: “Tazo represents another
strategic addition which strengthens our tea portfolio towards high growth segments. Its
artfully crafted specialty teas perfectly complement our global tea business, which includes
Lipton, Pure Leaf, PG Tips, T2 and our recent addition, Pukka.”