Coke buys Honest, aims to preserve entrepreneurial culture
Coca-Cola has finally bought out Honest Tea for an undisclosed amount, after having acquired a 40% stake in the organic beverage company in 2008. The move is seen as an opportunity for Coke to expand its presence in the ready-to-drink tea market, where it lags its main competitor PepsiCo. Since the beverage giant bought into the company three years ago, the number of retail outlets stocking Honest Tea has multiplied by five and now stands at 75'000. Its sales have tripled in the same period to reach $72 million. Despite the expansion, the company plans to continue to rely on "guerrilla" marketing tactics, which have been proven effective in the past. This strategy involves field marketing, innovative demos, genuine media coverage and a strong social media presence. Honest Tea will continue to operate as a separate business within Coke's Venturing and Emerging Brands unit.