Honest Tea
Encyclopedia
Honest Tea is a bottled organic tea company based in Bethesda, Maryland
. It was founded in 1998 by Seth Goldman
and Barry Nalebuff
. On February 5, 2008, the Coca-Cola Company announced its purchase of a 40% stake of the company at $43 million.
Honest Tea products started at a local Fresh Fields, later acquired by Whole Foods Markets. Honest Tea began with its first shipment of 15,000; ten years later the product is being distributed by the tens of thousands. Originally their products were notable for being almost entirely tea with a tiny amount of sugar. Since 2007 they have expanded their sweetened beverage line while distribution of their barely sweetened teas shrank.
In 2002 Honest Tea won seven SPINS awards. Honest Tea received its USDA organic certification in 2004, and was acknowledged as one of the 500 fastest growing private companies.
Honest Tea got an unpaid endorsement when The New York Times
revealed that the White House
is now stocking Honest Tea, as it is Barack Obama
's preferred beverage- specifically, the "Black Forest Berry" and "Green Dragon" flavors.
1999 New accounts with Whole Foods Market
, Wild Oats Markets
, Giant Food
, Harris Teeter
and The Food Emporium
were created. The year ended with sales at $1.1 million.
2000 Honest Tea created a tea bag line. SPINS announced that Honest Tea is the fastest-growing bottled tea brand in natural food stores. The year ends with $1.9 million in sales.
2001 In this year, 50% of Honest Tea's products were made with only certified organic products. Community Green Tea was introduced in partnership with City Year
. Fourth-year sales were $3.2 million.
2002 SPINS awarded Honest Tea seven awards, among which Honest Tea was announced to be the best-selling bottled tea brand in the natural foods industry. Seven of the top ten best-selling varieties were Honest Tea products. Year-end sales were $4.6 million.
2003 Peach Oo-la-long (Fairtrade certification), Green Dragon, and a new formula of Lori's Lemon were introduced to create a new line of "a tad sweet teas". The two new flavors were the two most successful new beverages launched in the natural foods industry in 2003. Honest Tea ranked #117 on the Inc. 500 list of the fastest growing private companies. Honest Tea was also given the "Dream Big Award" sponsored by Inc. (magazine)
and Visa Inc.. At the end of this year the sales were $5.5 million.
2004 In January, Honest Tea gained full USDA organic certification
on all products. The PET line was introduced, and year-end sales were $5.9 million.
2005 White teas were added to the PET and Glass lines: Mango White Tea, Pearfect White Tea, and Vanilla Mint White Tea. Heavenly Honey Green (later renamed Honey Green), and a new Ade line, Cranberry Lemonade and Limeade, were introduced as well. Sales hit $9.6 million.
2006 Pomegranate Blue was added to the Honest Ade line. Just Green Tea and Just Black Tea, two unsweetened fair trade teas, were added to the Glass line. The two additional glass teas were named a Clear Choice Award winner by Glass Packaging Institute
for excellence in packaging, and Consumer Reports
named Lori's Lemon as number one in its July feature story on bottled teas. Sales were $13.5 million.
2007 Honest Tea launched nine new flavors. These new flavors included an addition to the PET Tea line—Pomegranate White Tea with Acai, one addition to the PET Ade line—Orange Mango with Mangosteen, two additions to the Glass line—Sublime Mate and Pomegranate Red with Goji Berry(Fairtrade). A whole new line for children was introduced as well; Honest Kids was launched with three flavors. Honest Tea partnered with TerraCycle
to recycle the used drink pouches of Honest Kids to handbags and pencil pouches. Sales hit $23 million.
2008 – In the year of Honest Tea's tenth anniversary, Coca-Cola
purchased 40% of Honest Tea. Five new flavors were introduced: Citrus Green Energy Tea, Peach White Tea (Fairtrade), and Lemon Black Tea (Fairtrade) to the PET Tea line; Citrus Spice Decaf and Jasmine Green Energy Tea (Fairtrade) to the Glass line. Honest Tea helped found Bethesda Green, a non-profit in Bethesda, Maryland. Sales reached $38 million.
2010 Honest Tea launches a guerrilla marketing effort called “Honest Cities.” Unmanned kiosks filled with Honest Tea products were set up in Atlanta, Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C. Payment was based on the honor system, with hidden cameras set up to capture the action.
Bethesda, Maryland
Bethesda is a census designated place in southern Montgomery County, Maryland, United States, just northwest of Washington, D.C. It takes its name from a local church, the Bethesda Meeting House , which in turn took its name from Jerusalem's Pool of Bethesda...
. It was founded in 1998 by Seth Goldman
Seth Goldman (businessman)
Seth Goldman is president and TeaEO of Honest Tea, which he co-founded in 1998 with his former business school professor, Barry Nalebuff.Before launching Honest Tea, Goldman was Vice President of the Calvert Group, which created the Calvert Social Index...
and Barry Nalebuff
Barry Nalebuff
Barry Nalebuff is Milton Steinbach Professor of Management at Yale School of Management. He is an expert in business strategy and game theory, as well as many other topics.-Education:Graduated Highschool at Belmont Hill School...
. On February 5, 2008, the Coca-Cola Company announced its purchase of a 40% stake of the company at $43 million.
Honest Tea products started at a local Fresh Fields, later acquired by Whole Foods Markets. Honest Tea began with its first shipment of 15,000; ten years later the product is being distributed by the tens of thousands. Originally their products were notable for being almost entirely tea with a tiny amount of sugar. Since 2007 they have expanded their sweetened beverage line while distribution of their barely sweetened teas shrank.
In 2002 Honest Tea won seven SPINS awards. Honest Tea received its USDA organic certification in 2004, and was acknowledged as one of the 500 fastest growing private companies.
Honest Tea got an unpaid endorsement when The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
revealed that the White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
is now stocking Honest Tea, as it is Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
's preferred beverage- specifically, the "Black Forest Berry" and "Green Dragon" flavors.
Honest Tea and Ade 16.9 oz. PET
Mango Green Tea, Pomegranate White Tea with Açai, Honey Green Tea, Lemon Black Tea, Peach White Tea, Cranberry Lemonade, Pomegranate Blue, Orange Mango with Mangosteen, Superfruit Punch and Limeade.Honest Tea 16 oz. Glass
Assam Black, Black Forest Berry. Community Green, Green Dragon, Jasmine Green Energy, Just Black, Just Green, Lori's Lemon, Mango Açai White, Moroccan Mint, Peach Oo-la-long, Pearfect White, Pomegranate Red with Goji Berry, and Sublime Mate.Honest Kids 6.75 oz Pouch
Berry Berry Good Lemonade, Goodness Grapeness, Appley Ever After, Super Fruit Punch, and Tropical Tango PunchHistory
1998 Five varieties appeared on a local Whole Foods Store (then Fresh Fields). Tea Production was moved to Buffalo, New York. The company ended the year with sales of $250,000.1999 New accounts with Whole Foods Market
Whole Foods Market
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the U.S...
, Wild Oats Markets
Wild Oats Markets
Wild Oats Markets was an operator of natural foods stores and farmers markets in North America. The stores offered dry grocery, meat, poultry, seafood, dairy, frozen, prepared foods, bakery, vitamins and supplements, health and body care, and household items. As of February 21, 2007, it operated...
, Giant Food
Giant Food
Giant Food as a supermarket chain may refer to:* Giant-Carlisle or Giant Food Stores LLC, a subsidiary of Ahold* Giant-Landover or Giant Food LLC, also an Ahold subsidiary* Giant Food Markets of Broome County, New York...
, Harris Teeter
Harris Teeter
Harris Teeter is a chain of supermarkets based in Matthews, North Carolina, just outside Charlotte. , the chain operates 207 stores in eight Southern states: North Carolina, South Carolina, Virginia, Georgia, Tennessee, Florida, Maryland, Delaware, and the District of Columbia.Harris Teeter is a...
and The Food Emporium
The Food Emporium
The Food Emporium is a chain of grocery stores originally part of Shopwell Inc. Acquired in 1986 by The Great Atlantic & Pacific Tea Company , The Food Emporium operated approximately 30 stores as of December 31, 2010, in Manhattan, Westchester County, New York, and Fairfield County, Connecticut...
were created. The year ended with sales at $1.1 million.
2000 Honest Tea created a tea bag line. SPINS announced that Honest Tea is the fastest-growing bottled tea brand in natural food stores. The year ends with $1.9 million in sales.
2001 In this year, 50% of Honest Tea's products were made with only certified organic products. Community Green Tea was introduced in partnership with City Year
City Year
City Year is an education-focused nonprofit organization that partners with public schools to provide full-time targeted intervention keeping students in school and on track to graduate...
. Fourth-year sales were $3.2 million.
2002 SPINS awarded Honest Tea seven awards, among which Honest Tea was announced to be the best-selling bottled tea brand in the natural foods industry. Seven of the top ten best-selling varieties were Honest Tea products. Year-end sales were $4.6 million.
2003 Peach Oo-la-long (Fairtrade certification), Green Dragon, and a new formula of Lori's Lemon were introduced to create a new line of "a tad sweet teas". The two new flavors were the two most successful new beverages launched in the natural foods industry in 2003. Honest Tea ranked #117 on the Inc. 500 list of the fastest growing private companies. Honest Tea was also given the "Dream Big Award" sponsored by Inc. (magazine)
Inc. (magazine)
Inc. magazine, founded in 1979 and based in New York City, is a monthly publication focused on growing companies. The magazine publishes an annual list of the 500 fastest-growing private companies in the U.S., the "Inc...
and Visa Inc.. At the end of this year the sales were $5.5 million.
2004 In January, Honest Tea gained full USDA organic certification
Organic certification
Organic certification is a certification process for producers of organic food and other organic agricultural products. In general, any business directly involved in food production can be certified, including seed suppliers, farmers, [food] processors, retailers and restaurants.Requirements vary...
on all products. The PET line was introduced, and year-end sales were $5.9 million.
2005 White teas were added to the PET and Glass lines: Mango White Tea, Pearfect White Tea, and Vanilla Mint White Tea. Heavenly Honey Green (later renamed Honey Green), and a new Ade line, Cranberry Lemonade and Limeade, were introduced as well. Sales hit $9.6 million.
2006 Pomegranate Blue was added to the Honest Ade line. Just Green Tea and Just Black Tea, two unsweetened fair trade teas, were added to the Glass line. The two additional glass teas were named a Clear Choice Award winner by Glass Packaging Institute
Glass Packaging Institute
The Glass Packaging Institute is a trade association for the U.S. glass container industry. Headquartered in Washington, DC, GPI lobbies on behalf of its members, while providing them with technical, promotional and public relations support...
for excellence in packaging, and Consumer Reports
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...
named Lori's Lemon as number one in its July feature story on bottled teas. Sales were $13.5 million.
2007 Honest Tea launched nine new flavors. These new flavors included an addition to the PET Tea line—Pomegranate White Tea with Acai, one addition to the PET Ade line—Orange Mango with Mangosteen, two additions to the Glass line—Sublime Mate and Pomegranate Red with Goji Berry(Fairtrade). A whole new line for children was introduced as well; Honest Kids was launched with three flavors. Honest Tea partnered with TerraCycle
TerraCycle
TerraCycle is a private U.S. small business headquartered in Trenton, New Jersey, which specializes in making consumer products from pre- and post-consumer materials....
to recycle the used drink pouches of Honest Kids to handbags and pencil pouches. Sales hit $23 million.
2008 – In the year of Honest Tea's tenth anniversary, Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
purchased 40% of Honest Tea. Five new flavors were introduced: Citrus Green Energy Tea, Peach White Tea (Fairtrade), and Lemon Black Tea (Fairtrade) to the PET Tea line; Citrus Spice Decaf and Jasmine Green Energy Tea (Fairtrade) to the Glass line. Honest Tea helped found Bethesda Green, a non-profit in Bethesda, Maryland. Sales reached $38 million.
2010 Honest Tea launches a guerrilla marketing effort called “Honest Cities.” Unmanned kiosks filled with Honest Tea products were set up in Atlanta, Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C. Payment was based on the honor system, with hidden cameras set up to capture the action.