Starbucks will open its first tea-only store in October under the Tazo brand.
The shop will sell more than 80 varieties of loose-leaf tea, which will be priced by the ounce, said Holly Hart, a Starbucks spokeswoman. While there are no immediate plans to open more stores, the company may consider additional Tazo shops “if we see another opportunity where a location is the right fit,” Hart said.
Starbucks is expanding its offerings beyond coffee to win new customers and help accelerate sales growth. The company this month acquired Bay Bread for $100 million in cash, its biggest purchase, to offer better quality food, and earlier this year opened a store selling flash-pasteurized juice.
The company will open the 1,700 square-foot store near its headquarters in Seattle’s University Village. The Tazo store will also sell pastries, baked goods and packaged chocolates.
Starbucks bought Tazo in 1999 for $8.1 million in cash.
The shares rose 0.9 percent to $55.64 yesterday. Starbucks has gained 20 percent this year.