Honest Tea's CEO Says Things Go Better With Coke

By Steve Kilar

Capital News Service

Coca-Cola's of Bethesda-based beverage producer Honest Tea continues to move forward, said Seth Goldman, the company's co-founder and CEO.

Goldman was the keynote speaker Wednesday at a Washington forum on sustainable business practices.

The Atlanta-based beverage giant purchased a minority share of Honest Tea in 2008. Since then, Honest Tea's distribution has expanded five-fold - from 15,000 to 75,000 sales outlets - and sales have tripled, Goldman said.

Honest Tea shareholders were formally notified Tuesday of Coca-Cola's plan to purchase the company's remaining shares. The company will remain headquartered in Bethesda, Goldman said in a blog post.

Goldman is optimistic about the acquisition - under which he will maintain an ownership stake - and hopes consumers will see the potential "green" advantages of wider distribution of Honest Tea's organic products.

"It's easy to fall into the 'big is bad, small is good' trap," Goldman said. But in addition to moving Honest Tea into a larger distribution network - helping fulfill the company's goal "to make organics democratized" - Coca-Cola also offers resources that can further sustainable business practices.

For instance, Goldman said, Coca-Cola is developing more eco-friendly bottles made from molasses, and its bottling plants waste less water than Honest Tea's other bottling facilities.

"Coke's (bottling) strategies are more advanced than ours," Goldman said.

Honest Tea, which also produces juices, is planning to expand beyond beverages and expects to launch a new fruit drink in about two months, Goldman said. "There's a lot more on the way."