Can Starbucks Market Teavana Tea as a Life-Saving Product?

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By Jon C. Ogg Updated Published
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If investors did not understand the victory that Starbucks Corp. (NASDAQ: SBUX) was bringing home when it acquired Teavana, they simply were not looking at reality nor at mathematics of growth. The coffee giant can now go out and see if it can replicate a portion of its success in coffee by taking over in the retail world of tea. 24/7 Wall St. would not expect Howard Schultz to go out and market the company as a life-saver in tea, but a new study out is signaling that he could.

Before you get too excited here, we would point out that many of these healthy benefits of tea have been discussed in various aspects for years in other publications and studies. Other studies may or may not say the same thing, but we want to at least make readers know that some of these benefits have been known or at least have been claimed before.

These health benefits include promote weight loss, improving heart health, type 2 diabetes and even fighting certain cancers. The new report came from the American Journal of Clinical Nutrition, and it was from the new proceedings from the International Tea and Human Health Symposium.

Other benefits were shown to be around improving bone health and activating areas of the brain that bolster attention, problem solving and mood. The group’s December 2013 issue of the American Journal of Clinical Nutrition features 12 new articles about the relationship between tea and human health and each is based upon presentations from scientists who participated in the Fifth International Scientific Symposium on Tea and Human Health. Some of the note headings were as follows:

  • Tea Leaf Polyphenols May Promote Weight Loss
  • Tea May Reduce Risk for Some Cancers
  • Tea Catechins are Cardioprotective
  • Tea Flavonoids Improve Bone Strength and Quality
  • Tea Improves Mood, Alertness and Problem Solving

Again, we would be shocked if Howard Schultz ever used this as a real marketing tool. He has not used a prior report that coffee curbs suicide risks. If a CEO will not use that for an opportunistic gain, then this may be left behind as well.

Starbucks hit a new all-time high of $82.50 on Wednesday and the coffee empire’s market value is now some $61 billion. Maybe Howard Schultz knows he can simply stick with the continued notion that his products taste good and that his stores should be a daily destination for millions of Americans.

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

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