Tea, as the second most consumed beverage in the world after water, is a $40B industry. Teavana (NYSE:TEA), a 300 store, mall-format ultra premium tea retailer has just become the latest company to be brought into the Starbucks' (NASDAQ:SBUX) fold, to the tune of $620M, or a 50% premium on Teavana share prices. So what is Starbucks planning to do with its newest acquisition? In this video, Motley Fool Consumer Goods Analyst Blake Bos tells us what some of Starbucks' plans are, how this acquisition compares to others they have made, and how it matches up with some of Starbucks' long-term goals.
Blake Bos has no positions in the stocks mentioned above. The Motley Fool owns shares of Starbucks and Teavana Holdings and has the following options: long DEC 2012 $16.00 puts on Green Mountain Coffee Roasters, short DEC 2012 $21.00 calls on Green Mountain Coffee Roasters, and short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.