The Controversial Acquisition of Teavana
In 2012, Starbucks acquired Teavana, a retailer of loose-leaf tea, to boost its tea variety. The coffee giant paid $620 million cash for Teavana even after it was discovered that the retailer’s most popular teas had poisonous pesticide residue. 77% of these products didn’t meet the required pesticide import standards in EU due to high levels of pesticide contamination. Most of them showed traces of Endosulfan, a chemical that causes infertility and birth defects.