Three years after Coca-Cola ceased production of Honest Tea, the organic, low-sugar brand co-founded by Seth Goldman, the entrepreneur expresses no resentment toward the beverage giant. “People ask, ‘Are you upset with Coca-Cola?’ I respond, ‘How could I be upset?’ … I certainly never wanted Honest Tea to be discontinued, but now that it has, we’ve encountered an incredible business opportunity.” This remarkable opportunity is Just Ice Tea, a brand that has quickly become one of the fastest-growing names in the natural foods sector, according to the company. It has recently emerged as the ninth best-selling ready-to-drink tea in the U.S. grocery market, surpassing Coca-Cola’s Peace Tea, as reported by NIQ data.
Goldman believes Just Ice Tea, which shares many characteristics with Honest, has the potential to evolve into a $1 billion brand. The brand’s success in eclipsing Peace, which Coca-Cola chose to prioritize when discontinuing Honest, further validates Goldman’s strategy. “This demonstrates that we were right to believe in [this], and I think the people at Coca-Cola just overlooked the opportunity and failed to capitalize on it effectively,” he remarked.
Just Ice Tea was launched by Goldman in 2022 alongside celebrity chef Spike Mendelsohn and Yale professor and Honest Tea co-founder Barry Nalebuff, just four months after Coca-Cola’s unexpected announcement to discontinue Honest Tea. The trio recognized that there was still consumer interest in an organic, less sweet, and Fair Trade-certified tea that Honest had pioneered. Their intuition proved accurate. Just Ice Tea generated $16 million in sales in 2023, its first full year, with projections to exceed $30 million in the current year. The brand’s rapid growth is poised for another surge as it recently entered mainstream retailers like Target, select Walmarts, and CVS, effectively doubling its store count to 12,000 and extending its reach beyond its established natural channel.
The market landscape has changed significantly since Honest Tea was founded nearly three decades ago. Terms like organic, low sugar, Fair Trade, and sustainability—once buzzwords at the inception of Honest Tea—are now commonplace in today’s product offerings. “The market is far more receptive to these concepts now compared to 1998 when they were largely unfamiliar,” Goldman noted.
While Just Ice Tea retains many attributes of Honest Tea, it also introduces some distinctions. Just Ice Tea utilizes agave instead of sugar as part of its commitment to supporting biodiversity in agriculture. Additionally, it opts for glass and aluminum packaging over plastic to enhance its environmental footprint. The beverage boasts a wider flavor variety compared to other teas on the market. Several of Just Ice Tea’s flavors are reimagined versions of popular Honest Tea offerings, such as Honey Green and Peach Oolong, but it has collaborated with Mendelsohn to create unique options like Orange Mango Herbal Fusion and Berry Hibiscus Herbal Tea.
Eventually, Just Ice may expand beyond tea, similar to how Honest did with products like Honest Kids, a low-sugar juice that Coca-Cola still markets. The potential opportunities are “wide and varied,” Goldman stated, though he refrained from specifying the options under discussion. For now, however, Just Ice Tea will concentrate on expanding its portfolio of 14 flavors before introducing additional offerings. “We love innovating,” he said. “But we must be responsible in managing our existing products.”
Amid this growth, the integration of t ccm tablets into their product line could also be a future consideration, reflecting a commitment to health and wellness that aligns with their brand ethos. This could further enhance their offerings and broaden their market appeal.