Teavana Holdings Inc., the wholly owned subsidiary of coffee
), brings two hot beverages - Teavana's Golden Dragon Yellow Tea
and Guatemala Casi Cielo coffee to warm up the winters of its
consumers. The beverages will be offered for a limited period
The popular seasonal offering Guatemala Casi Cielo coffee has
returned back this season for the 10
season. The hot drink rich in dark cocoa is a hot favorite for
its smooth texture and balancing lemony acidity. Casi Cielo
coffee is made up of coffee beans grown at altitudes above 1,525
meters. The coffee beans can be brewed for making espresso,
coffee press or automatic brewer and will be available in whole
bean, K-Cup packs and Verismo pods.
The launch of Teavana's Golden Dragon Yellow Tea will be the
company's first yellow tea andwill hit the store shelves on Jan
Golden Dragon Yellow Tea is made from a rare tea grown in
China. The popular Chinese tea is also known for its limited
harvest season and crafting process. The cost for this tea is
$29.98 per 2 ounces. Customers purchasing 2 ounces of tea will
receive a commemorative Golden Dragon Tin.
Starbucks acquired the Atlanta-based Teavana Holdings, Inc., a
specialty retailer of tea, for approximately $620 million in cash
in fiscal 2012. Teavana is geared to capture the growing
U.S. tea market. Per a recent survey conducted by the company,
34% of Americans increased their tea consumption in 2013, and an
additional 42% plan on drinking more tea in 2014.
The tea industry is thriving in the U.S. with the tea makers
producing newer flavors, strengths and sweeteners. Moreover, the
high product differentiation of tea enables the makers to earn
high profit margins despite recessive conditions.
The ageing population of America is drawn toward tea for its
health benefits and disease prevention qualities. Per the market
research firm, Euromonitor, the tea industry is projected to grow
10% by 2017 in terms of on-trade volume.
With the recent dip in temperature, the two rich, aromatic hot
drinks are expected to be popular among the Americans, and boost
sales in the upcoming quarters. Starbucks has been strengthening
its product portfolio with significant innovations around at-home
coffee, refreshments, health and wellness, tea and enhancing core
Starbucks carries a Zacks Rank #3 (Hold). Better-ranked stocks
in the retail/restaurant sector include
Fiesta Restaurant Group, Inc.
The Cheesecake Factory Inc.
Cracker Barrel Old Country Store, Inc.
). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy),
Cheesecake Factory and Cracker Barrel carry a Zacks Rank #2
CHEESECAKE FACT (CAKE): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
FIESTA RESTRNT (FRGI): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
To read this article on Zacks.com click here.