After Coca-Cola ceased production of Honest Tea three years ago, co-founded by Seth Goldman, the entrepreneur holds no grudge against the beverage giant.
“People ask, ‘Are you angry at Coca-Cola?’ I reply, ‘How could I be upset?’ … I never wanted Honest Tea to be discontinued, but now that it has, we have an incredible business opportunity.”
This opportunity is Just Ice Tea, now one of the fastest-growing brands in the natural foods industry. It has become the ninth best-selling ready-to-drink tea in the U.S. grocery channel, surpassing Coca-Cola’s Peace Tea, according to NIQ data.
Goldman envisions Just Ice Tea, with similar qualities to Honest, becoming a $1 billion brand. The brand’s success over Peace Tea, which Coca-Cola favored over Honest, validates Goldman’s strategy.
“This demonstrates that we were right to believe in [this], while the Coca-Cola team missed the opportunity and failed to capitalize on it,” he stated.
Just Ice Tea Continues Honest’s Legacy
Just Ice Tea was founded by Goldman in 2022 with celebrity chef Spike Mendelsohn and Yale professor and Honest Tea co-founder Barry Nalebuff, just four months after Coca-Cola’s unexpected decision to discontinue Honest Tea.
The team believed there was still a demand for an organic, less sweet, and Fair Trade-certified tea, similar to what Honest pioneered.
Their belief proved accurate. Just Ice Tea sales reached $16 million in its first year (2023) and are projected to exceed $30 million this year.
The brand’s rapid growth received a boost as Just Ice Tea entered mainstream retailers like Target, selected Walmarts, and CVS, expanding its reach beyond the natural channel it dominates.
The landscape has evolved significantly since Honest Tea’s inception almost three decades ago.
“The market is more receptive now than it was back in 1998 when all these concepts were unfamiliar,” noted Goldman.
While Just Ice Tea shares many characteristics with Honest Tea, it also boasts some distinctions.
Just Ice Tea uses agave instead of sugar to promote biodiversity in agriculture. It opts for glass and aluminum over plastic to enhance its environmental impact.
The beverage offers a wider range of flavors compared to other teas on the market.
While some flavors mirror popular Honest Tea offerings like Honey Green and Peach Oolong, collaborations with Mendelsohn have produced unique options such as Orange Mango Herbal Fusion and Berry Hibiscus Herbal Tea.
In the future, Just Ice could expand beyond tea, similar to Honest’s ventures like Honest Kids, a low-sugar juice still sold by Coca-Cola. Goldman hints at diverse opportunities without specifying details.
For now, Just Ice Tea concentrates on enhancing its portfolio of 14 flavors before introducing more to the market.
“We love to innovate,” he expressed. “But we must be responsible in promoting our existing offerings.”