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Cramer: Could this celebrity partner boost Starbucks?

(Click for video linked to a searchable transcript of this Mad Money segment)

Jim Cramer is a big fan of Starbucks. He thinks the company has a very shrewd and forward thinking CEO in Howard Schultz.

And on Wednesday, Schultz may have done something that moves the needle, pretty quickly.

He partnered with Oprah Winfrey.

At the company's shareholder's day in Seattle, Schultz and Winfrey announced jointly that, beginning April 29, the company will sell Teavana Oprah Chai in both Teavana stores and Starbucks stores across the U.S. and Canada, with Starbucks making a donation for each product sold to the Oprah Winfrey Leadership Academy Foundation to benefit educational opportunities for youth.

Oprah Winfrey personally developed the tea with Teavana's leading teaologist Naoko Tsunoda. The distinctive blend of tea, which features a bold infusion of cinnamon, ginger, cardamom and cloves, blended with loose-leaf black tea and rooibos, will be made available to customers in time for Mother's Day in the U.S. and Canada in handcrafted latte and loose-leaf tea formats.

Of all the celebrities in the world with whom to partner, Jim Cramer says Schultz picked a winner. "There's something called the Oprah effect," he said. "She has the ability to increase sales almost single-handedly."

However, beyond the additional profits that may be generated through the partnership, Cramer believes the deal achieves something much more valuable; it raises the profile of the company's Teavana chain.

And Cramer believes the profit potential in Teavana, a chain at least 300 separate stores that sell tea, is considerable.

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"It's a $90 billion global category – twice the size of coffee," explained Starbucks CEO Howard Schultz during an interview with "Mad Money." "We are going to reinvent and create an opportunity for a new source of revenue and profit."

Although Cramer didn't mentioned the stock specifically on Wednesday, in the past he's told investors he's a long-term Starbucks bull. "The long-term move higher is far from over," he said.

Jim Cramer talking with Starbucks CEO Howard Schultz at the company's annual shareholder's day
Source: Vildana Hajric | CNBC
Jim Cramer talking with Starbucks CEO Howard Schultz at the company's annual shareholder's day

Reuters contributed to this report
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