A recently released third-quarter report from the brand indicates that numerous company's mall-based Teavana retail stores have been "persistently underperforming". The company said numerous Teavana stores, which are mainly based in malls, "have been persistently underperforming".
However, Starbucks reported disappointing revenue and comparable sales growth on Thursday in its third quarter earnings report with the Teavana chain partially to blame.
Teavana locations feature more than 100 varieties of teas.
Starbucks had also opened a few standalone Teavana-branded tea bars, but ended the experiment by converting these businesses into Starbucks cafes or closing them.
Starbucks acquired the US mall-based chain in 2012, with then-CEO Howard Schultz citing the huge potential for the tea market. But the frequency of customer visits was flat from a year ago.
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"Starbucks' growth potential in China is unparalleled", Johnson told the Tribune said during a phone interview Thursday.
Teavana hot and iced teas will still be sold in Starbucks' namesake stores.
In the USA, sales rose five per cent at established locations, also driven mostly by higher spending. Starbucks said it plans to be operating 5,000 stores in China by 2021.
Last year, it generated $8 billion in global revenues. The majority of brick and mortar Teavana stores are located inside of these former consumer hotspots, so it's no wonder Starbucks Corporation has chose to do away with the flailing company.
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