Teavana posts loss
Atlanta-based tea retailer Teavana, which announced last month that it was being purchased by Starbucks, lost $1.4 million in the third quarter, mostly due to its own acquisition of the Canadian tea seller Teaopia earlier this year.
Teavana executives did not speak about the future plans for the company, citing the $620 million Starbucks acquisition. In a statement, Teavana said its net sales increased 38 percent, to $46 million, as it converted the Teaopia stores to Teavana and opened 17 new locations.
The company also opened its first Teavana franchise store in the Middle East.
The Starbucks acquisition is expected to close by the end of the year. In an analyst conference last week, Starbucks reiterated its intent to buy Teavana, in spite of a report — by a company that could benefit from the merger falling apart — that Teavana’s products may be tainted by pesticides. Teavana denied the claim.
At the conference, Starbucks said it intended to grow Teavana’s store base in neighborhoods and integrate its beverages at Starbucks stores.
About the Author
Arielle Kass covers Gwinnett County for The Atlanta Journal-Constitution. She started at the paper in 2010, and has covered business and local government beats around metro Atlanta. Arielle is a graduate of Emory University.
