A-B’s Teavana Deal: Tied House Concerns?

Dear Client:Earlier this month we broke news that A-B has inked a preliminary deal with Starbucks to produce, bottle, and distribute through its wholesaler network a premium tea, Teavana Ready-to-Drink (RTD) tea, in the U.S., with an expected launch date occurring in the first half of 2017. Teavana is the specialty premium loose leaf non-alc tea brand Starbucks purchased in 2012 and sells through its stores (but not currently at other retailers). But then people started emailing with a query: