Chicago: Starbucks Corp is taking its Teavana to China, aiming to prove a coffee chain can sell tea in a country that drinks more of it than any other place.
"Teavana-branded tea will be sold for the first time in Starbucks stores in China in the fiscal year that ends in September,'' the company said in a statement issued during its annual shareholders meeting in Seattle on Wednesday.
Starbucks already sells some green- and iced-tea drinks in the Asian nation.
"It's very complementary to our coffee business," chief operating officer Kevin Johnson said in an interview. "With Teavana -- similar to what we've done with coffee -- we've established a very premium brand."
It's clear why Starbucks is looking to expand with Teavana: Globally, tea sales are more than $100 billion.
Starbucks, which has boosted revenue by expanding beyond its core coffee drinks, purchased Teavana in 2013. Last year, the company's tea sales jumped 17% to almost $1 billion, led by growth in iced tea.
In China, Starbucks will face established local tea brands that dominate the market.
Consumers in the world's most populous nation have flocked to bubble milk teas such as U-Loveit, and Starbucks has tried to compete with its green-tea lattes and iced teas mixed with black currant and raspberry juice.
Other fast-food chains, including KFC, have tried to draw young customers and the health conscious with herbal teas in China.
Starbucks is also looking to take Teavana to Britain, France and Germany this year, according to Johnson.
At the meeting, the company made other announcements:
The number of US Starbucks rewards members grew to more than 12 million, up about one million during the past quarter.
Starbucks will introduce cold brew ready-to-drink beverages across the US grocery stores this summer with partner PepsiCo Inc.
The company will continue to supply Starbucks K-Cups in a partnership with Keurig Green Mountain Inc and will roll out new latte K-Cups this summer.
Starbucks plans to introduce single-serve capsules that fit Nespresso machines in Britain and France this summer.
The company is introducing a prepaid Visa card this year that allows customers to earn rewards with purchases.
"We're really elevating the Starbucks brand in all channels," Johnson said.