The Coca-Cola Company announced it will phase out the HONEST teas product line out of its beverage portfolio by the end of 2022.
Gold Peak, a national brand, and the regional Peace Tea offering will now 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,” said Sabrina Tandon, group director, RTD Tea, Coca-Cola North America Operating Unit. “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.”
The company said it will continue to produce and distribute the HONEST Kids line of organic juice drinks and explore licensing ventures and innovation opportunities for the HONEST brand in other categories.
Coca-Cola cited decreased sales and supply challenges for glass bottles as reasons to discontinue HONEST Tea. The increased sales of brands like Gold Peak and Peace Tea puts them in a better position for growth.
“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.”
Tandon credits HONEST tea with helping the company create a new route to market into the natural foods channel, where brands like Simply, Topo Chico, Vitaminwater, and Smartwater remain.
The Coca-Cola Company’s coffee and tea portfolio include Fuzetea and several other brands sold overseas, including Ayataka, Costa Coffee, Dogadan, and Georgia.
