Starbucks acquired Teavana for approximately $620 million and is expecting the acquisition generates approximately $0.01 per share in fiscal year 2013. Officially became the newest member of their portfolio including Evolution Fresh, La Boulange, Seattle’s Best Coffee and Tazo. This acquisition has risen my curiosity as to the cost and benefit to Starbucks of this event. To my understanding, specialty tea beverages has also taken up a great portion of market share which raise the interest of Starbucks to acquire a tea company. But is it necessary to acquire Teavana rather than developing a partnership just like Tazo, especially when Teavana does not create a serious threat to Starbucks?
Berkshire Hathaway Inc. will own half of H.J. Heinz Co. with supply cash to help fund the acquisition. Warren Buffett favours companies that has strong brand awareness and global presence, the most famous one being Coca Cola. It is not a surprise that Mr. Buffett has his eyes on this company and adding it to his portfolio as well.