Starbucks failed to read the tea leaves.
The coffee giant has finally realized what many already knew: Americans don’t like tea all that much. The company paid about $620 million for Teavana in late 2012, with aspirations to “jumpstart the next wave of growth in this dynamic category.”
Starbucks brought the Teavana brand into Starbucks locations, held on to Teavana’s own retail stores, and even opened a few high-end Teavana Fine Teas Tea Bars.
But the business still wasn’t doing well enough for Starbucks to keep it going.