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Site-Wide Activity › Forums › Tea News and Information › Review: Is Honest Tea any different after their purchase by Coca-Cola?
Tagged: coca cola, honest tea, smith tea maker, stash, steven smith, tazo
Interesting article in Business Insider.I can see Honest Tea’s argument that they can do better because they are now supported by big dollars but are they really still true to their original philosophy? Can you be when you’re owned and ruled by a conglomerate? I don’t drink this tea but @iheartteas does I think. Thoughts?
Good question.
It will depend on how Coca Cola manages the brand.
My experience with “bigger” or falling under a bigger flag is a mixed blessing. At the one hand there is more money available and in negotiations a bigger party is usually stronger and therefore getting a better deal.
The disadvantages of bigger are for example a larger distance to the top, who can have totally different priorities: money, prestige, (political) power, another part of the group is more important etc.
So in the end it all depends how things are managed, play out etc
I wrote a book on this subject. Honestly I did. And the answer is yes, they are different. It’s very rare that a purchase like this does not incrementally change the takeover target until it is unrecognisable and just another outpost of their masters.
@thedevotea a book? Where can I find it?
This one: http://www.amazon.com/Nights-Trans-Arabian-Corporations-Boardrorom-ebook/dp/B0038HEOMW/ref=sr_1_10?ie=UTF8&qid=1362295198&sr=8-10&keywords=robert+godden
In the first three chapters The Vampires represent Coca-Cola and Giselle represents Honest tea. Not very subtle
Darn, Kindle only?
No Bram, it is available as an actual book. I have some left .
I think if a brand wanted to stay firm to its core ideology and at the same time have a desire to play in the big leagues … they should do something like Steven Smith. Create a signature brand that you are the artisan (Smith Tea Maker) will have complete control over. Then to satiate the desire to make the big bucks create other brands (Stash / TAZO) — Reading the history of Honest Tea and the why and how clearly points to their desire to want to create something different and that had a higher level of quality from what was available. With the COCA COLA investment, there is no way to keep with original plan…
There is a way but it will only happen if Coca-Cola gives free reigns to the original team (not really likely but it can happen).