Coke to Invest in Honest Tea?

[GhostModder]

According to a late December CNNMoney.com article, Coca-Cola Co., Atlanta, GA, is close to making an investment in up-and-coming beverage company Honest Tea, Bethesda, MD, for an undisclosed amount, according to a published report. CNNMoney.com claims the move, first reported by Beverage Digest, would allow Coca-Cola to “expand its beverage selection amid slumping cola sales.” Honest Tea is a pioneer in organic tea drinks, posting over $13 million in its eight year of business. John D. Sicher, editor of Beverage Digest, told CNNMoney.com in an e-mail last week that "Honest is a very small brand, but has attracted attention due to its organic positioning…Linking up would be a positive for Coke."

So far, Coke boasts a nutraceutical beverage portfolio that includes brands like Vitaminwater, Fuze and V8 Splash.

The CNNMoney.com article went on to say that although Coca-Cola sells Nestea and Gold Peak tea drinks, it still remains behind PepsiCo, privately held Arizona, and Cadbury Schweppes in take-home market share for the segment.


More...