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Anheuser-Busch InBev has partnered with Starbucks for the production, bottling, marketing and distribution of Teavana ready-to-drink (RTD) tea in the US. The product is expected to be launched in the first half of next year.

In the partnership, Starbucks will make use of Teavana’s tea expertise, retail activation, and consumer engagement capabilities, while Anheuser-Busch will be responsible for production, bottling and distribution to retailers across the country.

Anheuser-Busch InBev chief executive officer Carlos Brito said: "This arrangement will bring together the strengths of two great companies, each with a long history of successful brand-building.

"This arrangement will bring together the strengths of two great companies, each with a long history of successful brand-building."

"Starbucks’ expertise and leadership in premium tea, combined with our world-class production capabilities and strong US distribution footprint, will position this new product well in what is an exciting and growing category.

"We are delighted to be in a position to offer this great product to our wholesalers and believe, with their support, we are ideally structured to maximize the sales opportunity for Teavana RTD tea across the US"

Starbucks chairman and CEO Howard Schultz said: "Tea has been an important part of Starbucks heritage since we opened our doors as Starbucks Coffee, Tea and Spices in the Pike Place Market in 1971.

"When we acquired Teavana in 2012, we saw a unique opportunity to do for tea what Starbucks has done for coffee and expand the Teavana brand across many customer experiences and products. We are excited to work with Anheuser-Busch to unlock the premium ready-to-drink market and further grow demand for the Teavana brand."

Anheuser-Busch and Starbucks expect to finalise the definitive agreements by the second half of this year.

According to Beverage Marketing Corporation, RTD tea segment grew by 16% CAGR in past five years and generated $1.1bn in sales.

Image: Anheuser-Busch partners with Starbucks for Teavana ready-to-drink (RTD) tea in the US. Photo: Courtesy of Starbucks Corporation.