Starbucks posts disappointing sales figure, will sell Tazo

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Starbucks Empire State Building_386987

FILE – This Dec. 20, 2010 file photo shows signage at a Starbucks store in New York’s Times Square. Starbucks will start offering delivery within New York City’s Empire State Building Tuesday, Oct. 13, 2015, giving office workers in the skyscraper the option of paying a $2 fee to avoid making a trip to the […]

NEW YORK (AP) – Starbucks is reporting disappointing sales growth at its coffee shops around the world and says it will sell its Tazo tea brand to Unilever for $384 million.

Shares of Starbucks Corp. fell 6 percent in after-hours trading Thursday.

Starbucks, which bought Tazo about 18 years ago for $8.1 million, says it will now focus on its Teavana line. It says the tea category in Starbucks stores is growing, though earlier this year had announced plans to shut Teavana stores.

The coffee chain also said Thursday that fourth-quarter sales rose 2 percent at its established locations worldwide. Analysts had expected a rise of 3.3 percent, according to FactSet.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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