Honest Tea
Product brand
UnclaimedA U.S. organic bottled-tea brand built around lighter sweetness, natural ingredients, and fair-trade sourcing.
Last updated August 26, 2026
Overview
Honest Tea was a United States beverage brand founded in 1998 by Seth Goldman and Barry Nalebuff. The founders sought to create a bottled drink that used organic ingredients, substantially less sugar than many mainstream soft drinks and teas, and a business model informed by fair-trade principles. Goldman developed the initial concept while studying at Yale, where Nalebuff was one of his professors. They raised approximately $500,000 from friends and family and launched the company as the U.S. ready-to-drink tea market was beginning to expand beyond conventional sweet tea and soda. The brand’s first documented customer was Fresh Fields, an East Coast natural-food grocery chain later acquired by Whole Foods Market. Honest Tea’s early distribution emphasized natural-food retailers and other channels associated with health-conscious consumers. The company also gained visibility through sales on Independence Air flights. Its core proposition was a brewed, organic tea with a restrained sweetness level, presented as an alternative to heavily sweetened bottled beverages. This positioning helped it establish a distinctive place within the natural and organic beverage segment. By 2006, Honest Tea was reported to have generated $13.5 million in revenue and sold approximately 1.5 million cases annually. Coca-Cola acquired a 40 percent stake in the company in 2008 for $43 million and purchased the remaining interest in 2011, making Honest Tea a wholly owned subsidiary of The Coca-Cola Company. Under Coca-Cola ownership, the portfolio included bottled organic teas and Honest Kids, an organic fruit-drink line aimed at children. The brand’s public profile also increased after The New York Times reported in 2009 that it was a preferred beverage of President Barack Obama, although this was an unpaid endorsement rather than a formal campaign. Honest Tea expanded its beverage range over time, including the introduction of Honest Yerba Mate in 2021. Its brand identity continued to emphasize organic credentials, moderate sweetness, environmental and social responsibility, and transparent communication. The phrase and trademark also became the subject of a separate dispute in Australia, where the local company Springleaf and entrepreneur Annabel Young contested Coca-Cola’s rights to use the Honest Tea name. On May 23, 2022, Coca-Cola announced that it would stop carrying Honest Tea beverages after December 31, 2022. Coca-Cola said it wanted to concentrate its tea resources on Gold Peak and Peace Tea, which it viewed as better positioned for consumer preferences across sweetness and flavor profiles. The company also cited production and distribution prioritization during supply-chain constraints, including difficulty meeting demand for Gold Peak. Honest Tea products ceased production at the end of 2022, although Coca-Cola stated that it intended to continue carrying Honest Kids organic fruit drinks. After the discontinuation announcement, Goldman and Nalebuff returned to the ready-to-drink tea category with chef Spike Mendelsohn through the launch of Just Ice Tea in September 2022.
History
Honest Tea began in 1998 when Seth Goldman and Barry Nalebuff developed a concept for a bottled beverage that combined organic ingredients with significantly less sweetness than many conventional soft drinks and ready-to-drink teas. Goldman had been thinking about a beverage business while at business school, and Nalebuff, a Yale professor, became his collaborator. Their approach also included fair-trade principles, reflecting the founders' intention to address both the formulation of the product and the social and sourcing practices behind it. The founders raised approximately $500,000 from friends and family to establish the company. The business secured its first order from Fresh Fields, an East Coast natural-food grocery chain that was later acquired by Whole Foods Market. This early retail relationship helped place the brand within the expanding natural and organic food channel. Honest Tea also sold products on Independence Air flights, giving it an unusual early distribution outlet and additional exposure beyond specialty grocery stores. The company differentiated itself through organic certification claims, a brewed-tea identity, restrained sweetness, and packaging and communications that presented the product as a more straightforward alternative to conventional sweetened beverages. The brand grew during the 2000s as demand increased for organic and better-for-you drinks. By 2006, reported revenue had reached $13.5 million, with annual sales of approximately 1.5 million cases. Coca-Cola entered the company as a minority investor in 2008, purchasing 40 percent for $43 million. This gave Honest Tea access to the resources and distribution capabilities of a major international beverage company while leaving the emerging brand with its own identity. Coca-Cola bought the remaining ownership interest in 2011, after which Honest Tea became wholly owned by Coca-Cola. Under Coca-Cola, Honest Tea remained associated with organic, low-sugar and lightly sweetened beverages. The broader portfolio included bottled teas and Honest Kids, a line of organic fruit drinks designed for children. Public recognition increased in 2009 when The New York Times reported that President Barack Obama preferred the brand. The report was not described as a paid endorsement, but it gave Honest Tea considerable cultural visibility. The brand also pursued additional product opportunities, including Honest Yerba Mate, introduced in 2021. Yerba mate is traditionally prepared from the leaves and stems of the yerba mate plant and allowed the company to extend its identity into another tea-adjacent beverage category. Honest Tea's name encountered a separate legal and commercial complication in Australia. The company lost an attempt in 2007 to claim rights to the phrase there. In 2015, Annabel Young won a case against Coca-Cola and retained the Honest Tea brand name in Australia. Springleaf, a separate small company, controls the trademark in that market. This issue affected territorial trademark control rather than the brand's principal U.S. business. The brand's U.S. bottled-tea operations ended as part of Coca-Cola's portfolio restructuring. On May 23, 2022, Coca-Cola announced that it would stop carrying Honest Tea beverages after December 31 of that year. The company stated that it would concentrate its tea portfolio on Gold Peak and Peace Tea, which it considered better placed to satisfy consumer preferences across different sweetness and flavor profiles. Coca-Cola also cited the need to prioritize production and distribution amid supply-chain constraints, including an inability to meet demand for Gold Peak. Honest Tea beverages ceased production on December 31, 2022. Coca-Cola said it planned to continue selling Honest Kids organic fruit drinks, leaving that line with a different status from the discontinued bottled-tea brand. The founders subsequently re-entered the category. In September 2022, before the production end date, Goldman and Nalebuff launched Just Ice Tea with celebrity chef Spike Mendelsohn. This follow-on venture demonstrated the continuing relevance of the founders' original lightly sweetened and socially conscious bottled-tea concept, but it was a separate brand and did not restore Honest Tea production.
- 2022
Bottled-tea production ends
[1]Coca-Cola ends production of Honest Tea beverages on December 31 while indicating that Honest Kids would continue.
- 2021
Honest Yerba Mate launches
[1]The brand expands beyond conventional bottled tea with a yerba mate beverage.
- 2011
Coca-Cola becomes sole owner
[1]Coca-Cola purchases the remaining interest and converts Honest Tea into a wholly owned subsidiary.
- 2008
Coca-Cola takes a minority stake
[1]The Coca-Cola Company acquires 40 percent of Honest Tea for $43 million.
- 2006
Company reaches significant early scale
[1]Reported revenue reaches $13.5 million and annual case sales reach approximately 1.5 million.
- 1998
Honest Tea is founded
[1]Seth Goldman and Barry Nalebuff establish Honest Tea around organic ingredients, moderate sweetness, and fair-trade-oriented business principles.
Products and positioning
Health-conscious, organic, lightly sweetened, natural, and socially responsible beverage branding.
Ready-to-drink organic tea · 1998
Honest Tea bottled teas
The core Honest Tea range consisted of bottled brewed teas positioned around organic ingredients and lower sweetness than many mainstream tea and soft-drink products. The line served as the principal expression of the brand's health-oriented and natural-food positioning. Coca-Cola discontinued production of the bottled-tea range at the end of 2022.
Organic children's fruit drink
Honest Kids
Honest Kids was an organic fruit-drink line created for children and distributed within the broader Honest portfolio. Although Coca-Cola ended the main Honest Tea beverage line, it stated that it intended to continue carrying Honest Kids, giving the product line a different status from the discontinued bottled teas.
Yerba mate beverage · 2021
Honest Yerba Mate
Introduced in 2021, Honest Yerba Mate extended the brand into a beverage made from or inspired by the leaves and stems of the yerba mate plant, a traditional South American drink. It represented an expansion of Honest Tea's tea-adjacent portfolio before the later discontinuation of the main beverage line.
Marketing campaigns
- 2009Presidential preference publicity
United States
The New York Times reported that President Barack Obama preferred Honest Tea. The exposure functioned as unpaid publicity rather than a formal paid endorsement campaign.
Outcome. Increased public visibility for the brand.
Brand decisions
2022
Discontinue Honest Tea beveragesStrategyBackground
Coca-Cola said it wanted to focus its tea portfolio on Gold Peak and Peace Tea and cited supply-chain limitations, including difficulty satisfying demand for Gold Peak.
Action taken
Coca-Cola announced on May 23 that it would stop carrying Honest Tea beverages after December 31, 2022, prioritizing production and distribution of other drinks.
Aftermath
Honest Tea beverage production ended on December 31, 2022. Coca-Cola said Honest Kids would continue to be carried.
2021
Launch Honest Yerba MateProduct launchBackground
The brand sought to extend its organic and tea-oriented identity into an adjacent traditional beverage category.
Action taken
Coca-Cola introduced Honest Yerba Mate.
Aftermath
The launch broadened the portfolio before the subsequent decision to end Honest Tea beverage production.
2011
Complete Coca-Cola acquisitionM&ABackground
Following its minority investment, Coca-Cola acquired the remainder of Honest Tea.
Action taken
The company became a wholly owned Coca-Cola subsidiary.
Aftermath
Honest Tea continued operating within Coca-Cola's beverage portfolio, alongside extensions such as Honest Kids.
2008
Accept Coca-Cola minority investmentM&ABackground
Honest Tea had developed a meaningful natural-beverage business and Coca-Cola sought an interest in the growing brand.
Action taken
Coca-Cola purchased a 40 percent stake for $43 million.
Aftermath
The investment preceded Coca-Cola's full acquisition of Honest Tea three years later.
Purchase price for 40 percent stake. $43 million (2008)
Recent events
- 2022
Coca-Cola announces the discontinuation of Honest Tea beverages[1]
Product generation
Coca-Cola announced that it would stop carrying Honest Tea beverages after December 31, 2022, while continuing to carry Honest Kids. The decision was linked to portfolio prioritization and supply-chain pressures.
- 2022
Honest Tea beverage production ends[1]
Other
The bottled-tea brand ceased production on December 31, 2022.
- 2022
Founders launch Just Ice Tea after Honest Tea discontinuation[1]
Product launch · Leadership change
Seth Goldman and Barry Nalebuff returned to the bottled-tea market with chef Spike Mendelsohn by launching Just Ice Tea.
- 2021
Honest Tea expands into yerba mate[1]
Product launch
Coca-Cola introduced Honest Yerba Mate, extending the brand into a beverage category associated with South American yerba mate leaves and stems.
- 2015
Australian rights dispute over the Honest Tea name[1]
Lawsuit
Annabel Young prevailed in an Australian trademark dispute involving Coca-Cola and retained the Honest Tea brand name there. A separate small company, Springleaf, controls the mark in Australia.
- 2011
Coca-Cola completes its acquisition of Honest Tea[1]
M&A
Coca-Cola purchased the remaining ownership interest and made Honest Tea a wholly owned subsidiary.
- 2009
Honest Tea receives reported presidential preference publicity[1]
Other
The New York Times reported that President Barack Obama preferred Honest Tea. The exposure was described as unpaid endorsement rather than a formal advertising campaign.
- 2008
Coca-Cola acquires a minority stake in Honest Tea[1]
M&A
The Coca-Cola Company purchased a 40 percent interest in Honest Tea for $43 million, beginning the brand's integration into the Coca-Cola beverage portfolio.
Sources2 sources
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