Coke given green light to purchase Honest Tea
The Federal Trade Commission has announced that Coca-Cola's deal to purchase Honest Tea would meet antitrust approval. The beverage giant bought a 40% stake in the bottled tea and juice company for $43 million in 2008, with an option to buy the remaining share this year. This allowed Honest Tea to benefit from Coke's nationwide distribution network. According to sources close to the matter, discussions are now under way, although no deal has been reached so far. This deal was the first major acquisition by Coke's Venturing and Emerging Brands unit, which oversees several other similar projects. Seth Goldman, the founder of Honest Tea, is expected to stay at the company after the purchase is completed.