Coca-Cola looking for Honest Tea
Coca-Cola is close to investing in Honest Tea - the up-and-coming healthy drink maker. With sales of $13.5 million last year, the company from Bethesda, MD is the soft drink giants latest target in search of diversification into the growing non-carbonated beverage industry. The appeal of Honest Tea lies in its comprehensive range of products that includes tea drinks and juices, as well as a line low-sugar thirst quenchers aimed at children - all of them certified organic and Fair Trade. The acquisition would give the company, in its 10th year of existence, strategic access to the mainstream market, whereas Coca-Cola would gain exposure to the booming ready-to-drink tea and coffee category with an estimated 28% annual growth.
Neville Isdell, CEO of Coca-Cola, identified tea as a priority area in context of lagging soft drink sales, indicating that the company is looking for acquisitions to bolster its offer of drinks oriented towards health-conscious consumers.