Coca-Cola Co. bought a 40% stake in Honest Tea for $43 million recently. Honest Tea was an independent ready-to-drink tea company started in 1998 by Seth Goldman and his university professor. “Coke plans to expand distribution of the company’s drinks into grocery stores, restaurants and other outlets. Coke will have the right to purchase the remainder of the company, currently valued at about $110 million, after three years.” - Betsy McKay - Wall Street Journal
What does this mean for both ready-to-drink iced tea companies and others who sell tea in teabags, loose leaf tea, etc. in North America? A lot more money spent on advertising tea in the U.S. will generate even more consumer interest in our products! Coca Cola will be spending their enormous resources to educate people on the benefits of tea, including health benefits which is great news for us! Coca Cola is competing with Pepsi’s Lipton product which is a top seller in the iced tea category in the U.S.
I would compare this development to the reason why our blends like the Goji Force Green Tea are such good sellers. The reason is the large amounts of resources spent on promotion of superfoods like goji berries, açai, and other superfoods. When a big player in the food/beverage industry decides to promote a single ingredient, the benefits are felt with every small business that has any stake in that particular market. In our case, other companies promoted goji berries so well, we don’t need to sell them to our customers - they have been educated on the benefits through the media and promotional materials from other brands.
Our blends include superfoods in every single blend: goji berries, seabuckthorn, blueberries, lingonberries, strawberries, blackcurrant, apples, etc. To view a list of our blends: Click Here!
- Katya Popoff