DAVIDsTEA Expands Wholesale Channel into U.S.

Initial launch of four flavours across Stop & Shop supermarket chain

MONTREAL, Nov. 20, 2023 (GLOBE NEWSWIRE) -- DAVIDsTEA Inc. (TSX-Venture: DTEA) (“DAVIDsTEA” or the “Company”), a leading tea merchant in North America, announced today its initial expansion into the U.S. wholesale market.

DAVIDsTEA recently launched four flavours of premium tea sachets at 150 Stop & Shop supermarket stores of the 400-plus locations in the northeastern U.S. This regional chain of grocery stores operates throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. 

The curated offering dedicated to Stop & Shop buyers includes best-selling flavours such as the sleep-aid Valerian Nights, classic Cream of Earl Grey (organic), herbal, caffeine-free Forever Nuts, and herbal, caffeine-free Cold 911 (organic). They rank among DAVIDsTEA’s strongest flavours for the wholesale market as well as in other channels. On a smaller scale, the Company recently introduced five flavours at Roche Bros. supermarkets. This family-owned business operates in 20 locations across Massachusetts.

DavidsTea previously operated 23 stores in the region and maintains brand awareness and customers who are looking for an easier way to access their favourite tea products. The Company continues to sell online in the United States but prefers to have easy-to-grab options available as part of an omni-channel experience.

“We believe in the potential of expanding our offering wherever our customers are,” explained Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA. “Our strategy involves step-by-step launches along the U.S. east coast to gauge consumer tastes and gradually replicate the success we have enjoyed in Canada. North of the border, we have already established a strong wholesale presence by selling our premium tea products and accessories into more than 3,800 doors. We will continue to meet our customers where they live.”

Earlier this year, DAVIDsTEA signed a distribution agreement with United Natural Foods, Inc. (UNFI), a wholesale distributor of healthy and specialty foods in the U.S. and Canada. UNFI supplies more than 30,000 locations throughout North America including natural product superstores, independent retailers, conventional supermarket chains, and food service customers.

About DAVIDsTEA

DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform at www.davidstea.com and the Amazon Marketplace, its wholesale customers which include over 3,800 grocery stores and pharmacies, and 18 company-owned stores across Canada. The Company offers primarily proprietary tea blends that are exclusive to the Company, as well as traditional single-origin teas and herbs. Our passion for and knowledge of tea permeates our culture and is rooted in an excitement to explore the taste, health and lifestyle elements of tea. With a focus on innovative flavours, wellness-driven ingredients and organic tea, the Company launches seasonally driven “collections” with a mission of making tea fun and accessible to all. The Company is headquartered in Montréal, Canada.