Celestial Seasonings

Celestial Seasonings is performing quite well. Tea sales in the U.S. are over $1 billion per year and it has captured 54% of the market. After its independence from Kraft, it made an IPO that brought in $38 million. Its marketing concept works and sustains loyalty by increasing customer involvement. Celestial Seasonings uses its penetration pricing strategy to have a competitive advantage over Lipton and Bigelow. It lost $3 million in 1993, but bounced back in 1994 with a $6.5 million net income. Its assets have grown to over $53 million while maintaining steady growth.…