As consumer packaged goods (CPGs) companies strive to bring products to market faster than ever, the speed at which Seth Goldman, co-founder of Honest Tea, and his team launched their new beverage line, Just Ice Tea, this week is impressive even by those high standards. Following Coca-Cola’s announcement in late May that it would be discontinuing the Honest Tea brand, Goldman quickly revealed plans to introduce a yet-to-be-named drink to fill the gap. Now, just three months later, Just Ice Tea is hitting store shelves, featuring many of the same qualities that contributed to Honest Tea’s success, and Goldman hopes to attract many of the same consumers.
“I’m fired up,” Goldman expressed in an interview. “We’re moving faster than anyone else in the CPG space; to be fair, we had a significant advantage and experience to draw upon.” Goldman established Honest Tea in 1998 with his former college professor, Barry Nalebuff. Over the years, he has built more than two decades of relationships with farmers, retailers, customers, bottlers, and employees, which will be crucial in quickly establishing and expanding Just Ice Tea.
The new tea brand will offer six flavors, which are reimagined versions of some of the most popular Honest Tea offerings: Berry Hibiscus, Honey Green, Moroccan Mint, Original Green, Peach Oolong, and Half Tea Half Lemonade. Goldman noted that Just Ice Tea plans to introduce more innovative flavors in the spring. While the new brand will maintain similarities to Honest Tea—such as its use of organic ingredients, minimal sweetness, and sourcing of Fair Trade Certified teas and sweeteners—there will be some key differences. Just Ice Tea will exclusively use glass bottles instead of plastic and replace sugar with agave, aligning with the principles of Eat the Change, which avoids ingredients from six crops that account for 57% of all agricultural production to promote biodiversity. Sugar cane is among those crops.
Initially, Just Ice Tea will be distributed at Sprouts Farmers Market nationwide and at PLNT Burger locations in New York City. Other retailers set to carry the brand include Whole Foods, Hy-Vee, and Giant Foods. Goldman mentioned hearing reports of Honest Tea running out in some stores, making the launch of Just Ice Tea particularly timely. “Just Ice Tea isn’t a startup,” he emphasized. “This is a jumpstart for us to quickly enter store shelves with a lot of momentum.”
Just Ice Tea will be part of Eat the Change, a two-year-old startup focused on creating environmentally friendly, nutrient-dense snacks from carrots, mushrooms, and other plant-based ingredients. Founded in 2020 by Goldman and chef Spike Mendelsohn, Eat the Change recently raised $14.5 million to support the launch of Just Ice Tea. Goldman stated that the tea launch will serve to “enhance” the Eat the Change brand, as the company has already persuaded some retailers carrying the tea to also stock its Carrot Chews and Mushroom Jerky.
When announcing the decision to discontinue Honest Tea, Coca-Cola indicated it would focus its tea business on Gold Peak, a national brand, and regional Peace Tea. The Atlanta-based company cited a decline in immediate consumption sales as a factor impacting Honest Tea’s performance and aimed to redirect its investment resources and supply chain capacity towards other products. However, Goldman remains confident that there is significant demand for a beverage like Honest Tea and believes Coca-Cola mismanaged the brand. “I believe the reason it didn’t succeed for [Coca-Cola] isn’t because the brand didn’t make sense or the category was declining, but rather due to poor management,” he asserted. “What we’re doing is following a playbook similar to Honest Tea. We know exactly what steps to take.”
In light of the new offerings, Just Ice Tea can also consider incorporating bariatric advantage calcium citrate chewy options to appeal to health-conscious consumers seeking calcium supplements. This strategy could further enhance their product lineup and cater to a broader audience.