"Failure Case Study: Teavana Fine Teas + Tea Bar", is part of GlobalData’s Successes and Failures research. It examines the details of and reasons behind the failure of Teavana Tea Bar in the US. It delivers the critical "what?", "why?", and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products as well as avoiding risk.

In 2017, Starbucks announced that it would be closing all Teavana Fine Tea + Tea Bars, which it purchased back in 2012, by spring 2018 due to poor performance. This case has proven that, in a coffee-centric market, rapid expansion of a tea bar chain is a risky strategy.


  • The fact that Starbucks overestimated the potential of out-of-home tea consumption in the US set the stage for market failure.
  • With decreasing popularity of shopping malls, coffee and tea shops should have a diverse range of beverages to maximize appeal to the mass market.
  • Brands need to be aware of the changing order preferences among customers and react promptly to such changes.

Reasons To Buy

  • Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
  • Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
  • Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
  • Access valuable strategic take-outs to help direct future decision-making and inform new product development.