HerbalEGram: Volume 5, Number 3, March 2008

Coca-Coca, the world’s largest beverage company, now has a 40% share in Honest Tea®, a fast-growing tea and beverage manufacturer founded in 1998.^1,2 This decision was announced on February 5, 2008. The amount of the investment was not disclosed.

According to TeaEO of Honest Tea, Seth Goldman, Coca-cola first approached him about the agreement in August of 2007. It is ironic that it was during a Coke v. Pepsi case study discussion in a Yale business class that Goldman and his future co-founder first agreed that there was a need for drinks that weren’t super-sweet or basically flavored water.³ Barry Nalebuff was Goldman’s professor at that time, and who would have guessed that they had happened on an idea that Coca-Cola would invest in a few years later? Not Goldman. He wasn’t even in the tea business at the time. “But so many wild things have happened since the start of Honest Tea that I wasn’t shocked either,” said Goldman. “Though there have certainly been some ‘pinch-me’ moments.”

Honest Tea is part of a minority of bottled teas made from real tea leaves, according to Goldman. Many bottled teas make their drinks from things like powders and tea solids because such practices are more cost effective, but customers will find that “they can have it all great taste, less calories, and organic. Honest,” said Nalebuff, co-founder and chairman of Honest Tea, in a recent press release.² Now, with the help of Coca-Cola’s investment, Honest Tea’s brand and mission can reach a wider and more mainstream audience.^1,2

What is Honest Tea’s mission? To create healthy alternative beverages with much less sugar than most bottled drinks.³ They’ve worked toward this goal with Honest Tea, Honest Ade® thirst quenchers, and Honest Kids^TM , a line of low-sugar drinks for kids sold in pouches. They also try to support a more sustainable form of agriculture, such as organic and Fair Trade certified, when possible.² According to Goldman, it's certified organic by USDA and Pennsylvania Certified Organic,  it's certified kosher by the Orthodox Union and those varieties that are Fair Trade certified are certified by Transfair USA.

More information about Honest Tea and Coca-cola are available on their Web sites: http://www.honesttea.com/ and http://www.thecoca-colacompany.com/.

—Kelly E. Saxton

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