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    Kraft to Distribute Tazo Tea to Supermarkets

    Tazo Tea Co., a unit of Starbucks Corp., announced this week it has reached an agreement with Kraft Foods Inc. to bring Tazo's tea products to more U.S. grocery stores, Reuters reports.

    Tazo Tea Co., a unit of Starbucks Corp., announced this week it has reached an agreement with Kraft Foods Inc. to bring Tazo's tea products to more U.S. grocery stores, Reuters reports. The agreement would greatly accelerate bringing the premium tea brand to independent and chain groceries, according to the companies.

    Terms of the agreement were not disclosed.

    Kraft has been distributing Starbucks coffee since 1998, according to the report. The coffee is now distributed to 20,000 grocery stores, said Pat Riso, a Kraft spokeswoman.

    The tea will be available both in filter packs and whole. Tazo also will offer chai tea and tea latte in 32-ounce liquid containers, as well as bottled ready-to-drink beverages, a Tazo representative said.

    "Since Tazo's beginnings in 1994, our vision has been to fundamentally upgrade the tea experience by creating a super-premium tea brand," Tal Johnson, president of Tazo, said in a statement. "This agreement is an exciting next step in enhancing our growing grocery presence and a significant move toward building a new super-premium tea category in mainstream grocery channels."

    Tazo products are found internationally in more than 7,500 Starbucks stores.

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