Founded in 1994, and purchased by Starbucks in 1999 for $8.1 million, Tazo is an iconic tea brand sold primarily in grocery, mass and convenience channels, offered in formats including packaged teas, K-Cup® pods, and bottled ready-to-drink teas.
According to Unilever, Tazo had sales of $112.5 million over the past year.
"With its strong appeal to millennials, Tazo is a flawless strategic fit for our USA portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington's", said Kees Kruythoff, president, Unilever North America.
"With its strong appeal to millennials, Tazo is a flawless strategic fit for our United States portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club and Sir Kensington's", Unilever North America president Kees Kruythoff said.
The two companies are expecting the deal to close in the fourth quarter of the year.
On the company's quarterly call, Starbucks said it would launch a co-branded Chase Visa credit card this winter.
Starbucks posted total revenue in the quarter, ended October 1, of $5.7 billion, flat with the year-ago period. Stripping out the impact of Hurricanes Harvey and Irma, which struck the U.S.in September, comparable sales would have been up 3 percent.
Starbucks global same store sales were up 2% following a gain of 2% in the amount each customer was spending and an increase of 1% in transactions.
The Seattle-based coffee giant made the announcement moments before it released its fourth-quarter earnings Thursday.
Because of the disappointing performance, Starbucks is revising its long-term projections.
The chain trimmed its long-term earnings target to growth of 12% or greater per share compared with its previous estimate of 15% to 20%. The tea category in Starbucks stores continues to grow double-digits globally, with Starbucks well on its way to building the Teavana business to over $3B over the next five years.
Starbucks had net sales for the quarter of $5.7 billion, flat with the same quarter the year prior.