Coffee will always be king. But I'm interested in this concept. I know lots of people who drink tea, especially old folks who can't stomach coffee anymore.
that said, if the youth don't embrace it, its curtains for Teavana. If I see the slightest sign of this being cool for the high school/college student, I'm all over this stock. But in the interim, this could easily see single digits.
I own an independent tea store. I will tell you - Teavana is good for business. They lure people into buying their high priced tea in malls, but when people get into it - they look for alternatives and find that they can get the exact same thing for 1/2 the price, and not have to deal with annoying, pushy sales people.
Tea is on a double digit upswing year after year. But like the craft beer market, it still is a small market. However, with more baby boomers switching to tea, and more people getting into it for health reasons, there is high upside potential.
However, I don't teavana will become a starbucks by any means. Their mall strategy is one of the main weaknesses.