Starbucks reported Q4 earnings of $0.63 per share, beating expectations for an EPS $0.60 per share. The company reported earnings of $3.8 billion, just of expectations for $3.81 billion. Global store sales were up 7%. Yet, as promising as Starbucks stores have been, the coffee giant is looking for new frontiers to expand its business.

Last week Starbucks opened a Teavana tea bar in New York City; the first step towards creating what it hopes will be a counterpoint to its enormously successful coffee chain. Before being bought by Starbucks last year, Teavana had primarily been known for retail shops that sold tea and supplies without serving the drink.

This example shows how proactive Starbucks is in their strategy. The fact that they are creating a whole new line of stores instead of adding teas to their current stores shows that they want to market this product differently. They even decided to design an entirely different cup. Starbucks says they believe there is $90 billion in the “global hot and iced-tea category” and they are are taking a bold step with their new tea store concept.

http://www.economist.com/blogs/schumpeter/2013/10/americas-tea-revolution