Honest Tea
| Company type | Subsidiary |
|---|---|
| Industry | Beverage |
| Founded | 1998 |
| Founder | Seth Goldman, Barry Nalebuff |
| Defunct | December 31, 2022 |
| Fate | Production halted; brand discontinued by parent company |
| Headquarters | Bethesda, Maryland , United States |
Area served | United States, Australia (trademark owned by Springleaf) |
Key people | Seth Goldman, Barry Nalebuff |
| Products | Bottled organic teas, Honest Kids organic juice line (maintained) |
| Parent | The Coca-Cola Company |
Honest Tea was a U.S.-based company specializing in bottled organic teas, headquartered in Bethesda, Maryland. Established in 1998 by Seth Goldman and Barry Nalebuff, it eventually became a fully owned subsidiary of The Coca-Cola Company before halting production on December 31, 2022.
History
The inception of Honest Tea dates back to 1998 when Seth Goldman, an alumnus of Harvard and Yale School of Management, developed the concept during his business studies. The company prioritized creating organic beverages with reduced sweetness while adhering to fair trade standards. Goldman collaborated with Yale professor Barry Nalebuff to secure $500,000 in initial funding from friends and family.
Their first significant retail partnership was with Fresh Fields, a natural foods grocer on the East Coast that was later absorbed by Whole Foods Market. By 2006, Honest Tea had achieved revenues of $13.5 million and distributed around 1.5 million cases each year.
In 2008, The Coca-Cola Company purchased a 40% ownership stake for $43 million and acquired the remaining shares by 2011, fully incorporating Honest Tea into its brand lineup.
The brand gained notable attention in 2009 when it was reported to be President Barack Obama’s favorite drink.
In Australia, the Honest Tea trademark is owned separately by Springleaf. After legal challenges, original trademark owner Annabel Young successfully defended the Honest Tea name against Coca-Cola’s claims in 2015.
Coca-Cola expanded the Honest Tea range in 2021 by introducing Honest Yerba Mate, aimed at consumers interested in traditional South American brewed tea varieties.
On May 23, 2022, Coca-Cola declared plans to discontinue Honest Tea products by the end of that year to concentrate on its primary tea brands—Gold Peak Tea and Peace Tea—citing supply chain difficulties and shifting consumer tastes. The company intended to maintain the Honest Kids organic juice line. Honest Tea was among approximately 200 brands that Coca-Cola phased out between 2020 and 2022.
Following this announcement, founders Seth Goldman and Barry Nalebuff teamed up with celebrity chef Spike Mendelsohn to launch Just Ice Tea in September 2022, marking their return to the bottled tea industry.