
Honest Tea was owned by The Coca-Cola Company, a publicly traded American multinational beverage corporation listed on the NYSE (KO). Coca-Cola acquired full ownership in 2011 and discontinued the Honest Tea product line by the end of 2022. The Honest Kids juice line remains active under Coca-Cola. Co-founders Seth Goldman and Barry Nalebuff launched the brand in 1998 as a pioneer in organic, lower-sugar bottled tea.
Parent Company
Acquired
2011
Status
Publicly Traded
Headquarters
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Honest Tea | The Coca-Cola Company | Wholly owned |
Seth Goldman and Barry Nalebuff founded Honest Tea in 1998 in Bethesda, Maryland. Goldman, a former Calvert Group executive, and Nalebuff, a Yale School of Management professor, developed the concept after Goldman noticed a gap in the market for bottled tea that was less sweet than conventional options. The name "Honest Tea" reflected the brand's commitment to simple ingredients and transparent labeling.
The company launched with five tea varieties brewed from organic tea leaves. The products were positioned as "just a tad sweet," containing significantly less sugar than competing bottled teas. This positioning differentiated Honest Tea from both unsweetened teas and the high-sugar ready-to-drink teas that dominated supermarket shelves in the late 1990s.
In its early years, Honest Tea distributed through natural food stores including Whole Foods Market. The brand gradually expanded into conventional grocery channels. Goldman personally delivered the first cases of Honest Tea to Whole Foods stores in the Washington, D.C. area. The company grew through grassroots marketing and word-of-mouth among health-conscious consumers.
Honest Tea became one of the first bottled tea brands to earn USDA Organic certification. The brand also obtained Fair Trade certification for its tea leaves and sugar, making it a pioneer in ethical sourcing within the ready-to-drink beverage category. These certifications became central to the brand's identity and marketing.
In 2008, The Coca-Cola Company made its first investment in Honest Tea, purchasing a 40% minority stake through its Venturing and Emerging Brands unit. This investment gave Honest Tea access to Coca-Cola's distribution infrastructure while allowing the brand to maintain operational independence. Over the following three years, Coca-Cola increased its involvement with the brand.
Coca-Cola acquired full ownership of Honest Tea in 2011. The acquisition integrated Honest Tea into Coca-Cola's North American beverage portfolio. Under Coca-Cola, the brand gained access to national distribution through the company's bottling network. Honest Tea products appeared in mainstream retail channels including convenience stores, supermarkets, and mass merchandisers.
In 2012, the company expanded the Honest brand with Honest Kids, a line of organic juice drinks packaged in aseptic pouches. Honest Kids targeted parents seeking lower-sugar beverage options for children. The line gained traction in both retail and foodservice channels, particularly school lunch programs.
Throughout the 2010s, Honest Tea faced growing competition in the organic and natural tea category. New entrants including RUNA, Health-Ade, and various private label organic teas eroded Honest Tea's market share. The brand also faced pressure from Coca-Cola's own tea portfolio, which included Gold Peak and Peace Tea. Gold Peak, launched as a home-brewed style tea, significantly outperformed Honest Tea in sales.
By 2020, Coca-Cola had undertaken a portfolio restructuring, cutting approximately 200 underperforming brands including Tab and Zico. Honest Tea survived this initial round of cuts but continued to face declining sales. The COVID-19 pandemic further impacted the brand, as immediate consumption channels such as convenience stores and foodservice saw reduced traffic.
On May 23, 2022, Coca-Cola announced it would phase out Honest Tea by the end of the year. Sabrina Tandon, group director of RTD Tea at Coca-Cola North America, stated that the decision was driven by a drop in immediate consumption sales and limited glass supplies. The company would consolidate its tea strategy around Gold Peak and Peace Tea. Honest Kids would continue.
The final Honest Tea products disappeared from store shelves by early 2023. The brand's 24-year run as a pioneer in organic bottled tea had ended. Co-founder Seth Goldman went on to launch Eat the Change, a snack food company focused on plant-based products.
Who owns The Coca-Cola Company?
The Coca-Cola Company is a publicly traded corporation owned by its shareholders. Berkshire Hathaway is the largest single shareholder with approximately 9% of outstanding shares. Other major holders include Vanguard Group and BlackRock. The company has no controlling owner.
Is Coca-Cola publicly traded?
Yes, The Coca-Cola Company trades on the New York Stock Exchange under the ticker symbol KO. It is a component of both the S&P 500 and the Dow Jones Industrial Average. The company has been publicly traded since 1919.
What is Coca-Cola's annual revenue?
For FY2025, Coca-Cola reported net revenues of $47.9 billion, up 2% from $47.1 billion in FY2024. Organic revenues grew 5%. Full-year EPS was $3.04, and comparable EPS was $3.00.
Who is Coca-Cola's CEO?
Henrique Braun became CEO on March 31, 2026. He succeeded James Quincey, who transitioned to Executive Chairman after nine years as CEO. Braun previously served as COO and has worked at Coca-Cola for three decades.
How many brands does Coca-Cola own?
Coca-Cola owns more than 500 beverage brands sold in over 200 countries. Approximately 30 brands generate annual retail sales of at least $1 billion each. Major brands include Coca-Cola, Coke Zero Sugar, Sprite, Fanta, Dasani, Smartwater, Powerade, Minute Maid, Costa Coffee, and Fairlife.
What is Coca-Cola's business model?
Coca-Cola produces beverage concentrates and sells them to approximately 225 independent bottling partners worldwide. These bottlers manufacture, package, and distribute finished beverages. This franchise model generates high margins on concentrate sales while bottling partners handle capital-intensive manufacturing and distribution.
What is Coca-Cola's 2026 outlook?
Coca-Cola projects organic revenue growth of 4% to 5% and comparable EPS growth of 7% to 8% for 2026. The company expects an approximate 1% currency tailwind and an approximate 4% headwind from acquisitions and divestitures, primarily from the pending CCBA sale.
How many people does Coca-Cola employ?
As of December 31, 2025, Coca-Cola employed approximately 65,900 people, of which approximately 8,900 were located in the United States. The decrease from 69,700 in 2024 was primarily due to divestiture activity.
Honest Tea was a certified organic and fair trade brand. The brand held USDA Organic certification for its tea products, ensuring that tea leaves were grown without synthetic pesticides, herbicides, or genetically modified organisms. This certification was maintained throughout the brand's active years.
Fair Trade certification was a core element of the brand's identity. Honest Tea sourced fair trade certified tea leaves and sugar, ensuring that farmers received fair prices and had access to community development funds. Co-founder Seth Goldman emphasized the brand's fair trade impact in his response to the discontinuation, noting the tens of millions of pounds of fair trade certified sugar and spice purchased from partner farmers over the brand's history.
The brand used glass bottles for its tea products, which Coca-Cola cited as a supply chain constraint in the discontinuation announcement. Limited glass supply contributed to production challenges in the brand's final years. Honest Kids products used aseptic pouches, a packaging format that did not face the same supply pressures.
Honest Tea was not a certified B Corporation. The brand's parent company, The Coca-Cola Company, operates under its own sustainability framework called World Without Waste, which aims to collect and recycle the equivalent of 100% of packaging by 2030. Honest Tea products participated in this initiative during the brand's active period.
The brand's sustainability legacy continues through Honest Kids, which maintains organic certification. However, the specific fair trade commitments that characterized Honest Tea's tea products do not directly carry over to the Honest Kids juice line.
Honest Tea received recognition as a pioneer in the organic and natural beverage market. The brand was frequently cited in industry coverage of the natural products movement and was featured in publications including The New York Times, The Washington Post, and BevNET.
The brand's organic and fair trade certifications were recognized by the Organic Trade Association and Fair Trade USA. Honest Tea was one of the first bottled tea brands to achieve both certifications simultaneously, setting a standard that influenced subsequent entrants in the organic beverage category.
Co-founder Seth Goldman received individual recognition for his work with Honest Tea, including profiles in business publications and speaking engagements at natural products industry conferences. The brand's acquisition by Coca-Cola was studied in business school curricula as a case study in corporate investment in mission-driven brands.
The brand did not receive major independent consumer product awards from organizations such as Consumer Reports. Its recognition was primarily within the natural products and organic food communities rather than from mainstream consumer testing organizations.
Honest Tea's most significant controversy was its discontinuation by Coca-Cola in 2022. The decision generated substantial media coverage and consumer backlash. Co-founder Seth Goldman publicly called the discontinuation a "gut punch" and expressed concern for the fair trade farmers who had supplied the brand. The discontinuation highlighted the tension between corporate portfolio management and the ethical supply chains that mission-driven brands build over time.
The brand's 2011 acquisition by Coca-Cola generated controversy among some loyal customers who questioned whether the brand would maintain its organic and fair trade commitments under corporate ownership. Some natural food advocates expressed concern that Coca-Cola's involvement would compromise the brand's independence and authenticity. The brand continued to maintain its certifications throughout its time under Coca-Cola ownership, though sales declined.
Honest Tea faced scrutiny over sugar content in some of its products. While marketed as "just a tad sweet," some varieties contained added sugar that drew criticism from health advocates. The brand offered zero-sugar and low-sugar varieties in response, but the criticism persisted in health and wellness communities.
The brand did not face major product safety recalls during its 24-year history. No FDA-mandated recalls or significant food safety incidents were recorded for Honest Tea products.
These competing brands operate in the same categories and provide similar products or services. Compare key attributes to understand market positioning and competitive landscape.
| Brand | Parent Company | Country | Founded | Market Position | Primary Market | Gender Target |
|---|---|---|---|---|---|---|
| Coca Cola Company | USA | 2007 | Mass market | Japan | All-ages | |
| Coca Cola Company | USA (historical) | 1980 | Discontinued | United states | All-ages |
Food BeverageOwned by The Coca-Cola Company
Japanese bottled green tea brand known for its authentic Japanese green tea made with high-quality tea leaves, offering traditional Japanese tea flavors in convenient bottles.
Food BeverageOwned by The Coca-Cola Company
Discontinued American juice and smoothie brand founded in 1980 in Santa Cruz, California. Acquired by Coca-Cola in 2001 for $181 million, discontinued in July 2020, and sold to Full Sail IP Partners in 2021.
Market Positioning: Honest Tea competes with 2 brands in the same categories, ranging from mass market to luxury positioning.
Geographic Distribution: Competitors are headquartered across multiple regions, indicating global competition in this market segment.
Brand Heritage: Competitor brands range from established heritage brands to newer market entrants, with founding years spanning several decades.
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