Thumbs down: ”Will tea retailer Teavana perform like Starbucks?”

[JackieKeymaster @jackie]

We’ve discussed Teavana and just this question on the forum previously, the company always makes for interesting discussions. , 

Here’s a link to today’s thought provoking report written up by Bruno Navarro on CNBC.com. 

Short answer to the query: No. At least not according to “Mad Money”s Jim Cramer. He has us pretty much down for a nation of coffee drinkers, since that little tea incident in Boston a couple of hundred, say 238 years ago. 

His view; Starbucks brewed itself to success on “lifestyle” unlike Teavana which he compares to a “Williams-Sonoma for teapots.” Somehow that sounds unflattering.

Interesting: 56% of Teavana’s sales are loose leaf tea, 40% make up tea accessories, and 6% beverages. 

Not only does Cramer advise not buying any stock, he thinks you should hurry up and sell yours. Teavana’s stock has certainly taken a tumble!

Watch the video too, it’s pretty dramatic. When you’re done, head on over to the forum discussion I mentioned in my opening. “Seeking Alpha” were you so very wrong?

[Robert GoddenParticipant @thedevotea]

The article is odd.

Why doesn’t he compare a grocery shop to a café?

It looks to me like this guy is big on analysis, metrics and forecasting, all based on no understanding whatsoever of the difference between Teavana and Starbucks.

Starbucks is image. Teavana is image+good products.

I’ll wait to see what Xavier has to say before commenting further. He’s the economist.

[Author]

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