Caribou Coffee will partner with Argo Tea to develop cobranded shops that combine their coffee, Einstein Bagels, and Argo’s selection of natural blends and tea lattes.
Caribou Coffee, owned by JAB Holding Co., intends to open 40 of the tribranded stores next year. The company currently operates several coffee and bagel locations and a few tribranded shops in Minneapolis, Minn.
Founded in 2003, Chicago-based Argo earns an estimated $50 million annually selling tea, tea lattes, and food at 50 locations. Half its revenue is from the sale of bottled teas in grocery, according to
Bloomberg News. Most of its 50 stores are in the Chicago area, but the company also operates six New York City stores. There are also nine locations in the Middle East.
JAB has spent more than $30 billion in the past few years acquiring US and European coffee businesses including Keurig Green Mountain, Peet’s Coffee & Tea, Krispy Kreme Doughnuts, and Einstein Bagels. JAB owns Mighty Leaf Tea and several European-based tea brands.
Argo teas are marketed as “naturally fresh, healthy, and distinctive. They are made from real ingredients that are free of any artificial flavorings, colors, or additives, according to a business profile compiled by Packaged Facts. “The company also has a growing retail business, offering bottled teas, loose teas, and tea sachets, as well as tea gift items and accessories. Committed to bringing teas directly from growers around the world, the brand promotes healthy lifestyles, natural resource conservation and sustainable business practices, and frames its brand as an upscale alternative to Starbucks,” according to the report.
Next year Starbucks will begin selling
bottled Teavana in thousands of U.S. retail stores.
“Adding a tea brand may help JAB better compete with Starbucks,” reported Bloomberg News.
Sources:
Bloomberg News,
Foodservice Tea Market Trends in the U.S. (Packaged Facts)
