JAB-owned Caribou Coffee has inked deal with Argo Tea to develop tri-branded coffee-bagel-tea shops with 40 to open in 2017.
Chicago-based Argo earns $50 million selling tea, tea lattes and food at 50 locations. Half its revenue is from the sale of bottled teas in grocery.
JAB Holding Co., which also owns Einstein Bros. Bagels has opened several co-branded coffee and bagel stores and a few tri-branded locations in Minneapolis, Min.
JAB has spent more than $30 billion in the past few years acquiring US and European coffee businesses including Keurig Green Mountain, Peet’s Coffee & Tea, and Krispy Kreme Doughnuts.
“Adding a tea brand may help JAB better compete with Starbucks,” reported Bloomber News.