Why did Starbucks and Coca-Cola enter the tea market? How about Starbucks Chawana series?

According to CCTV reports, the US tea market ushered in a new round of growth.

As the video says, with restaurants closing across the United States, demand for tea in the restaurant industry fell 70% last year, and many teahouses saw sales decline last year, but one thing to note is that online sales of tea increased sharply by 75%, a trend that has hardly occurred in the tea industry in the past.

According to the American Tea Association, almost 80% of American households now drink tea, covering a population of 159 million.

As the demand for tea market grows, tea drinking will also become a popular trend.

Earlier, Coca-Cola, the global fast-moving consumer beverage giant, and Starbucks, the world's largest coffee chain brand, had also entered the tea market.

In 2008, Coca-Cola bought a 40% stake in Honest Tea, a company specializing in tea drinks, and in 2011, Coca-Cola bought it directly. It was not an easy decision for Coca-Cola at that time, and many distributors were not optimistic about Coca-Cola's decision. Today, Honest Tea has become one of Coca-Cola's fastest-growing brands.

In addition, coffee-led Starbucks has also opened tea stores, and last July, Starbucks 'tea brand Teavana opened a store in Roppongi Hill, a well-known shopping mall in Japan.

In 2012, Starbucks acquired the Teavana brand from Italy at a price of US $620 million and entered the tea beverage market. In 2016, Starbucks put Teavana products on shelves in all stores nationwide, and registered the trademark Chinese name of "Chawana," and emphasized its difference from traditional tea drinks on Slogan "Tea with New Ideas."

In this regard, industry insiders believe that as more young Americans drink tea, tea consumption will usher in a new situation in the United States.

In June 2018, Starbucks announced that it would sell its Teavava tea bag products in major supermarkets and grocery stores in the United States, but this business form soon appeared crisis, and Starbucks announced the closure of its Teavava tea bar stores in the United States, totaling 379.

In July last year, Starbucks re-tried to open tea stores, perhaps because of the trend in the tea market. At that time, Starbucks Japan also said it would open more Teavana stores in the future and make tea a major revenue pillar after coffee and frappuccino.

Finally,

Whether Starbucks or Coca-Cola, they chose to enter the tea market because they undoubtedly saw the potential of the tea market, including the unlimited development space of the current new tea drinking track, which also attracted countless investors to rush in.

* Image source: Internet