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 towards the beverage giant. “People often ask, ‘Are you upset with Coca-Cola?’ and I respond, ‘How could I be upset?’ … While I certainly never hoped for Honest Tea to be discontinued, the situation has opened up an incredible business opportunity for us.” That incredible opportunity is Just Ice Tea, a brand that has quickly become one of the fastest-growing names in the natural foods sector, as claimed by the company. It recently emerged as the ninth best-selling ready-to-drink tea in the U.S. grocery market, surpassing Coca-Cola’s Peace Tea, according to 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 over Peace, which Coca-Cola chose to focus on instead of Honest, further validates Goldman’s approach. “This demonstrates that we were right to have faith in this concept, and I think Coca-Cola missed a significant opportunity and failed to capitalize on it properly,” he remarked.
Just Ice Tea was launched by Goldman in 2022 in collaboration with 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 was convinced that there remained consumer demand for an organic, less sugary, and Fair Trade-certified tea, which Honest pioneered.
Their instincts proved correct. Just Ice Tea generated $16 million in sales during its first full year on the market in 2023, with projections indicating it will exceed $30 million this year. The brand’s impressive growth is poised for an additional boost, as Just Ice Tea has recently entered mainstream retailers such as Target, select Walmarts, and CVS, effectively doubling its store presence to 12,000 and expanding its reach beyond its natural channel stronghold.
The marketplace has transformed significantly since Honest Tea’s inception nearly 30 years ago. Terms like organic, low sugar, Fair Trade, and sustainability—which were once niche concepts in 1998—are now commonly used for products today. “The market is far more receptive to these ideas now than it was back in 1998 when they were unfamiliar notions,” Goldman explained.
While Just Ice Tea retains many of Honest Tea’s attributes, it also differentiates itself in some ways. For instance, Just Ice Tea incorporates calcium magnesium citrate and agave instead of sugar, aiming to enhance agricultural biodiversity. Additionally, it opts for glass and aluminum packaging over plastic, thereby improving its environmental footprint. The beverage also offers a wider array of flavors compared to other teas available on the market. Although several of Just Ice Tea’s flavors are reimaginings of popular Honest Tea offerings, such as Honey Green and Peach Oolong, it has collaborated with Mendelsohn to create unique flavors like Orange Mango Herbal Fusion and Berry Hibiscus Herbal Tea.
Eventually, Just Ice Tea could expand beyond tea products, similar to how Honest branched out into offerings like Honest Kids, a low-sugar juice that Coca-Cola continues to market. The possibilities for growth are “wide and varied,” Goldman noted, though he refrained from detailing specific options being considered. For now, however, Just Ice Tea will concentrate on expanding its portfolio of 14 flavors before introducing additional products to the market. “We love innovating,” he stated, “but we need to be responsible in promoting our existing offerings.”