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Starbucks, Pepsi and Unilever Partner in Tea Category

Starbucks Coffee Company, PepsiCo Inc. and Unilever form a licensing agreement for the manufacturing, marketing and distribution of Starbucks super-premium Tazo Tea ready-to-drink (RTD) beverages in the United States and Canada.

Tazo's RTD line will be integrated into the Pepsi/Lipton Tea Partnership (PLP), expanding the joint venture between PepsiCo and Unilever. Established in 1991, the PLP is the leading distributor of RTD tea products in the United States. Starbucks relationship with PepsiCo dates back to 1994, when the two companies formed the North American Coffee Partnership (NACP), a joint venture that helped build the RTD coffee category in the United States through the development and distribution of Starbucks bottled Frappuccino, Doubleshot espresso, Doubleshot Energy + Coffee and other beverages.

"Unilever and Starbucks have both been great partners of PepsiCo for over a decade, so culturally it's a great fit," says Mary Barnard, general manager, vice president, Pepsi/Lipton Tea Partnership. "By engaging the passionate base of Tazo consumers already established by Starbucks, leveraging the strength of the Pepsi bottling system and employing the beverage expertise of the Pepsi/Lipton Tea Partnership, we'll be able to share Tazo RTD products with a larger audience than ever before."

Kraft Foods, which previously distributed the Tazo RTD product line as part of its 10-year relationship with Starbucks, will continue to market and distribute Tazo filterbag teas and tea latte concentrates, as well as Starbucks and Seattle's Best Coffee packaged coffees in non-cafe channels.
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