With its roots in Canadian entrepreneurship and a bold vision for tea culture, DAVIDsTEA is once again steeping success. The Montreal-based retailer, once a fast-growing darling with over 240 stores across North America, is now navigating a new chapter under the leadership of CEO Sarah Segal, daughter of the late co-founder Herschel Segal.
In an interview, Sarah Segal shared the company’s revitalized approach to product development, community engagement, and thoughtful retail expansion.
“DAVIDsTEA was never just about tea—it was about creating something new, energetic, and inclusive,” Segal explained. The company’s founding story is as vibrant as its teal branding. Herschel Segal, the renowned Canadian retail entrepreneur behind Le Château (who recently passed), partnered with his nephew David Segal to build a brand that would challenge the tea industry’s status quo.
“I always say we were the ‘fashion tea company,’” said Segal. “The early approach mirrored the fashion world—frequent new drops, seasonal excitement, and a strong focus on design.”
The first DAVIDsTEA store, opened in 2008, was a modest 300-square-foot space carved out of a Le Château storefront on Queen Street in Toronto. “From day one, the energy was incredible,” Segal recalled. “It immediately resonated with people.”
Rapid Growth, Then Reinvention
After explosive expansion, DAVIDsTEA went public in 2015. But by 2020, the company faced a major crossroads. Amid the pandemic, DAVIDsTEA filed for creditor protection and closed nearly all of its physical stores—including all U.S. locations. “It was a reset,” said Segal. “We had to rethink everything.”
The company pivoted swiftly to e-commerce and select wholesale partnerships, including an innovative shop-in-shop concept with Rexall pharmacies across Canada. “Our partnership with Rexall has been fantastic,” said Segal. “It’s a curated selection that introduces new customers to our brand in a welcoming setting.”
Today’s Retail Footprint—and What’s Ahead
DAVIDsTEA currently operates 20 stores in Canada, up from 18 at the end of 2020. Two new stores opened in the past year, and more are on the horizon.
“We’re evaluating new opportunities but doing so strategically,” Segal said. “It’s about re-entering the communities where we had strong engagement and seeing how consumers shop today.”
That includes leveraging e-commerce, which remains a key channel for the brand. “We don’t obsess over the online vs. in-store split,” she explained. “Instead, we focus on being present wherever customers want to find us—whether that’s in a store, online, or through grocery retail.”
Innovation Through Blends and Origins
If there’s one area where Segal lights up most, it’s product development. “That’s what gets me going,” she said with a smile. “We launch over 100 new products a year. It’s about discovery, seasonality, and fun.”
DAVIDsTEA’s innovation isn’t limited to adding flavours—it also includes exploring new origins, health benefits, and functional blends. “We’ve been investing in matcha for over 15 years,” Segal noted. “In fact, we’re about to be onsite for a harvest in Japan.”
The product pipeline now includes teas aimed at wellness, immunity, sleep, women’s health, and energy. “Mighty Aphrodite, our women’s health blend, sold out three times,” she said. “We also launched probiotic teas like Vanilla Parfait. We’re responding to the real needs of customers in fun, accessible ways.”
Proudly Canadian, Globally Minded
Throughout the conversation, Segal returned often to the company’s Canadian roots—not as a marketing gimmick, but as a cultural anchor. “We’ve always been proudly Canadian,” she said. “Our headquarters and distribution centre are still in the same three-block radius in Montreal. And our team reflects Canada’s multicultural, multilingual spirit.”
Yet despite the local focus, DAVIDsTEA remains committed to serving customers across North America. “We still ship to the U.S. and have loyal customers there,” Segal added. “The demand for tea is growing everywhere.”
That’s good news for DAVIDsTEA, which views tea as more than a beverage—it’s a lifestyle. “We’ve seen interest grow as people reduce alcohol and caffeine or look for better sleep and anxiety relief,” she said. “Tea can play a role in all of that.”
The Colour of Calm
The brand’s now-iconic teal hue, soft and inviting, wasn’t chosen at random. “My father actually saw the colour in a Ryerson fashion program’s student project,” Segal said. “There was science behind it—how it evoked calm and positivity. That became our signature.”
This blend of youthful vibrancy and emotional resonance became central to DAVIDsTEA’s appeal. “We wanted to be approachable, never intimidating,” she added. “Tea can be complex, so our design and tone were rooted in friendliness and warmth—very Canadian values.”
Giving Back, One Cup at a Time
Beyond commerce, DAVIDsTEA has made social impact part of its mission. “For every transaction, we donate a cup of tea to someone in need,” Segal shared. “It could be a teacher, a nurse, a patient—it’s part of how we stay connected to our communities.”
In May, for example, DAVIDsTEA is offering free tea to nurses in honour of their service. “It’s small in the moment, but when you zoom out and realize we’re on track to donate three million cups of tea—it’s powerful,” said Segal.
Learning from the Pandemic
The pandemic forced the company to become more agile. “We had to change how we worked, how we delivered products, how we bought them,” Segal said. “We leaned heavily into listening mode. Our customers told us what they needed—and we acted on it.”
That included everything from building a digital-first supply chain to rethinking store placement. “Even in a city like Toronto, people’s movement patterns have changed. We’re studying that closely to determine how many stores are needed to truly serve an area.”
The Road Ahead: Brand Reconnection and Tea’s Rise
So what does the future hold?
“We’re in a period of reconnection,” Segal said. “People are rediscovering DAVIDsTEA—and tea in general. Our goal is to remain a platform for that discovery and continue offering fun, natural, and innovative products that fit into people’s lives.”
The brand is also exploring expansion opportunities—both online and through physical retail—with a measured, customer-first approach.
“As demand for tea grows, we’re ready,” said Segal. “We’ve always been passionate about this space. Now more people are joining that journey—and we’re excited to welcome them.”
