The Coca-Cola - Honest Tea Deal: Promoting Sustainability or Corporate Greenwashing?


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Case Details:

Case Code : BECG113
Case Length : 22 Pages
Period : 1998-2009
Pub Date : 2010
Teaching Note : Available
Organization : Honest Tea / Coca-Cola Company
Industry : Non-carbonated Beverages
Countries : US

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

The Stake Sale

In spite of its encouraging revenue growth, Honest Tea continued to struggle in terms of distribution. The company had an insignificant presence in supermarkets and convenience stores. While it had a presence in a few niche stores in the urban areas, the company did not have any presence in the overseas markets...

Customers Question Honest Tea's Honesty

However, consumers, who had been loyal to Honest Tea over the years and had helped the brand grow, were taken aback by the deal. One of the consumers wrote in Goldman's blog that she would not buy Honest Tea, as it had sold itself out to Coca-Cola...

Looking Ahead

Industry analysts were of the view that Coca-Cola was taking a diversion from its normal route of completely acquiring companies, and instead opting to invest in equity of companies like Glacéau and Honest Tea...

Exhibits

Exhibit I: Different Types of Tea and its Harmful Effects
Exhibit II: Organic Products as Defined by USDA
Exhibit III: How is Bottled Tea Made?
Exhibit IV: Honest Tea - Key Milestones (1999-2008)
Exhibit V: Honest Tea -- Mission Statement and Aspirations for CSR
Exhibit VI: Label of Honest Tea
Exhibit VII: Office of Honest Tea
Exhibit VIIIA: Some Natural Product Companies Acquired by Big Corporations and the Aftermath
Companies Where Social and Environmental Causes Took a Beating
Exhibit VIIIB: Some Natural Product Companies Acquired by Big Corporations and the Aftermath Companies that Continued to Operate in a Responsible Manner


  

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