Coca-Cola to phase out Honest tea product line

May 25, 2022
Gold Peak and Peace Tea brands to anchor the company’s ready-to-drink tea strategy in North America.

According to a company statement, The Coca-Cola Company is prioritizing brands with the greatest potential for scale and profitable growth. The Honest teas product line will be phased out of The Coca-Cola Company’s beverage portfolio at the end of 2022.

Gold Peak, a national brand, and the regional Peace Tea offering, will anchor the company’s ready-to-drink tea (RTD) strategy in North America. 

“Shifting from a three-brand tea portfolio to a prioritized two-brand tea lineup will free up investment resources and supply chain capacity to better meet consumer needs and capture share in the category,” Sabrina Tandon, group director, RTD Tea, Coca-Cola North America Operating Unit, said in the announcement. “We believe Gold Peak and Peace Tea are best positioned to meet consumer preferences for high-quality brewed teas with different levels of sweetness and flavor.” 

“We are phasing out the Honest teas product line, but are not selling the Honest brand,” Tandon clarified in the statement. 

According to the announcement, Gold Peak and Peace Tea are driving growth of the RTD tea category. Honest teas, which are primarily offered in single-serve bottles with a strong concentration in the Northeast and along the West Coast, have been negatively impacted by a drop in immediate consumption sales and limited glass supplies. 

“Ongoing supply chain challenges mean we are having to prioritize production and distribution of certain product SKUs, and that we’ve been unable to meet consumer demand for Gold Peak,” Tandon added in the statement. “This, among other factors, helped drive this very difficult decision.” 

Tandon added, “We see endless runway with Gold Peak and are excited to expand the trademark with new product and packaging innovations that will appeal to the Honest Tea consumer.” 

The Honest brand was founded in 1998 by Seth Goldman and Barry Nalebuff. In 2008, The Coca-Cola Company took a 40% investment stake in Honest before fully acquiring the brand in 2011.

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