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Coca-Cola Spills the (Honest) Tea; Industry Reacts

In what Honest Tea co-founder Seth Goldman called a “gut punch,” Coca-Cola announced Monday that it would discontinue the Honest Tea line.

The announcement was “a gut punch to all the sweat, tears and incredible passion that went into building our beloved brand,” Goldman said in a post on his LinkedIn account.

“My thoughts are with our longtime partners and friends, the organic and Fair Trade partners who helped develop their communities and protect their ecosystems with the tens of millions of pounds of tea, sugar, and spice they sold us,” Goldman wrote.

“I am grateful for the hundreds of amazing people who helped Barry Nalebuff and me grow this idea from five thermoses and an empty Snapple bottle into more than a billion bottles sold.”

“A sad day,” Nalebuff commented as he shared Goldman’s post. “But tis better to have bottled and lost than never bottled at all. Seth Goldman remains an inspiration to me and to the world. His thoughts below show his empathy, positivity, and honesty. Wish I could bottle that, too.”

“I too am crushed,” Ironmonger Brewery co-owner Tom Larsen commented.

Chuck Muth, founder of Aqua Cultured Foods called Honest Tea a “tremendous product” that he was proud to represent as a board member.

“If Coke had any vision they would have focused on Honest as the better long term play in tea,” Muth commented. “All in all a sad day.”

Industry executive and author Joe Dobrow commented that “Honest Tea has been a godsend for millions of consumers and farmers. But it was also the key that unlocked your unrivaled vault of inspiration, helping launch and grow countless other natural products entrepreneurs and companies. And dare I say, their collective impact on the world probably dwarfs that of Honest Tea.”

Dobrow wrote that Goldman worked hard to mentor others and “gave them the vision, game plan, and advice they needed to help change the world.”

“I know Coca-Cola did much to accelerate the growth of Honest Tea,” Dobrow wrote, “and for that I am grateful. But when the final chapter is written in the history of the natural foods movement – no idea who that author might be – we must admit that this is were legendary brands go to die. RIP, HT.”

“Shocking!” Steven MK Fader, executive leader of operations and purchasing for Whole Foods Market. “Honest was the trailblazer in this category and has helped change the way consumers think about what they drink.”

In a press release issued Monday, Coca-Cola said it “is challenging itself to think differently about how its brands help accelerate business transformation, reflect consumer choice and promote growth as a company. This means rationalizing its lineup of drinks and prioritizing fewer, bigger brands with the greatest potential for scale and profitable growth.

“While the HONEST Kids portfolio is quickly growing and will remain a successful part of the business, the HONEST teas product line will be phased out of The Coca-Cola Company’s beverage portfolio at the end of 2022.
“Gold Peak, a national brand, and the regional Peace Tea offering will now anchor the company’s ready-to-drink tea (RTD) strategy in North America,” the company said.
In his bio, Goldman said Coca-Cola acquired Honest Tea in 2011, “helping to further the reach and impact of Honest Tea’s mission by becoming the first organic and Fair Trade brand in the world’s largest beverage distribution system. Today, Honest Tea is the nation’s top selling ready-to-drink organic bottled tea and Honest Kids is the nation’s top-selling organic children/youth beverage. The brand is carried in more than 100,000 outlets in the United States, including Wendy’s, Chick-fil-A, McDonald’s and Subway restaurants.”

In 2016, became TeaEO emeritus and innovation catalyst for Coca-Cola’s Venturing & Emerging Brands business unit. Goldman is focusing on building his “beloved/mission-driven brands” Eat the Change, Beyond Meat and PLNT Burger.”

Nalebuff is the Milton Steinbach professor at Yale.
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