Starbucks to sell tepid Tazo tea brand to Unilever
Starbucks is reporting disappointing sales growth at its coffee shops around the world and says it will sell its Tazo tea brand to Unilever for $384 million.
Shares of Starbucks Corp.(SBUX) fell 6 percent in after-hours trading Thursday.
Starbucks, which bought Tazo about 18 years ago for $8.1 million, says it will now focus on its Teavana line. It says the tea category in Starbucks stores is growing, though earlier this year had announced plans to shut Teavana stores.
The coffee chain also said Thursday that fourth-quarter sales rose 2 percent at its established locations worldwide. Analysts had expected a rise of 3.3 percent, according to FactSet.