After just three years of operation, Starbucks will close its Teavana Fine Tea and Tea Bars and convert them into Starbucks stores.
The premium tea retailer first opened in 1997 at Phipps Plaza in Atlanta, Georgia and eventually opened the first Fort Myers retail storefront in 2006. Recently, the Teavana location in Coconut Point has permanently closed its doors after a decade of service.
Teavana specializes in mixology and global tea culture with hundreds of loose-leaf tea blends, including “blooming” white, rooibos, herbal, green and black teas. In total, Teavana operated nearly 350 retailers across North America, according to World Tea News, an integrated media company for the global tea industry and division of Peyton Media.
Starbucks added Teavana as a subsidiary in 2012 after closing the acquisition for $260 million. New York based tea-drinkers saw the first of three Teavana Tea Bars open in 2013 shortly after the merge, along with two other Tea Bar locations based in Seattle and Beverly Hills.
Teavana contributed to the seven percent net revenue increase for Starbucks’ first quarter fiscal reports, generating a $1 billion revenue for the parent company.
Now, the parent company has decided that managing the Teavana storefronts may not have been a profitable move in comparison to its coffee shops, according to Forbes.
This is not the first time that Starbucks has added a subsidiary and closed their doors.
Along with Teavana, Starbucks also bought La Boulange Bakery in 2012 and then closed its 23 stand-alone locations by 2015 and converted them into Starbucks shops.
Simon Property Group, Inc., which owns Coconut Point Mall, was contacted in regards to the recent closure of the local Teavana storefront but was unable to comment on behalf of a retailer.
Starbucks’ media relations was contacted and is currently working on an answer as to why the Coconut Point location closed.