As consumer packaged goods (CPGs) companies strive to bring products to market at an unprecedented pace, Seth Goldman, co-founder of Honest Tea, and his team have taken rapid action to launch their new beverage line, Just Ice Tea, this week. Their speed is remarkable, even by the high standards of the industry. Following Coca-Cola’s announcement in late May that it would discontinue the Honest Tea brand, Goldman quickly revealed plans to introduce a new drink to fill the gap. Now, just three months later, Just Ice Tea is hitting store shelves, aiming to attract the same customers with many of the successful qualities of Honest Tea.
“I’m fired up,” Goldman expressed in an interview. “This is faster than anything seen in the CPG space, but we had a significant advantage since we’ve done this before.” Goldman founded Honest Tea in 1998 with his former college professor, Barry Nalebuff. Over the years, he has built extensive relationships with farmers, retailers, customers, bottlers, and employees, which he can leverage to swiftly establish and expand Just Ice Tea.
The new tea brand will feature six flavors inspired by the most popular offerings from Honest Tea: Berry Hibiscus, Honey Green, Moroccan Mint, Original Green, Peach Oolong, and Half Tea Half Lemonade. Goldman indicated that Just Ice Tea plans to roll out more innovative flavors in the spring. While Just Ice Tea shares similarities with Honest Tea, such as the use of organic ingredients and minimal sweetness, it will also introduce some significant changes. Notably, it will be packaged exclusively in glass bottles instead of plastic and will replace sugar with agave. Additionally, Eat the Change, the parent company, avoids six crops that account for 57% of agricultural production to promote biodiversity, including sugar cane.
Initially, Just Ice Tea will be available at Sprouts Farmers Market nationwide and PLNT Burger locations in New York City, with other retailers like Whole Foods, Hy-Vee, and Giant Foods also set to carry the brand. Goldman noted reports of Honest Tea running low in some stores, making the launch of Just Ice Tea particularly timely. “Just Ice Tea is not a startup,” he emphasized. “This is a jumpstart for us, allowing us to enter store shelves with significant momentum.”
Just Ice Tea will be part of Eat the Change, a startup founded in 2020 by Goldman and chef Spike Mendelsohn, which focuses on environmentally friendly, nutrient-dense snacks made from plant ingredients such as carrots and mushrooms. Last month, Eat the Change secured $14.5 million to support the launch of Just Ice Tea. Goldman believes that the new tea product will enhance the Eat the Change brand, with some retailers already expressing interest in also stocking its Carrot Chews and Mushroom Jerky.
Coca-Cola announced its decision to discontinue Honest Tea, citing a desire to center its tea business around its national brand Gold Peak and the regional Peace Tea. The company stated that Honest Tea had suffered due to a decline in immediate consumption sales, prompting it to reallocate its investment resources and supply chain capacity to other products. However, Goldman believes there is strong consumer interest in this type of beverage and that Coca-Cola mismanaged the Honest Tea brand. “I think the reason it wasn’t successful for [Coca-Cola] isn’t because the brand didn’t make sense or the category was declining; it’s how it was managed that was the issue,” he asserted. “We’re applying a playbook similar to Honest Tea because we know what needs to be done.”
In addition to its focus on quality and sustainability, Just Ice Tea may also highlight the health benefits of ingredients like calcium citrate, magnesium, and zinc, which are known to contribute positively to overall health. By emphasizing these qualities, Goldman hopes to attract health-conscious consumers who are looking for refreshing beverage options that support their well-being.