Honest Tea is one of President Barack Obama’s favorite drinks. We all know about President Obama’s healthy fitness regimen and his preference of drinking Honest Tea Black Forest Berry is a type of endorsement that you just don’t buy. So, it is telling that in these Economic times when scrimping is the name of the game, Honest Tea sales are up by 60%.
CEO Seth Goldman tells CNBC that “I think one of the things that have helped us is that we’ve always maintained a minimal price premium. So it is premium, it is organic, but we’ve not been priced at 100 percent more than Snapple or the other drinks, it’s 10 or 20 percent. That keeps it within reach.”
Another factor that may have contributed to the Honest Tea’s growth this year is its partnership with Coca Cola, as the beverage giant purchased 40% stake of the company in February 2008. This means more distribution of the Honest Tea brand which has most likely contributed to its increased sales.
One thing is for sure, even as consumers cut back, they still want to experience some affordable luxuries like a good cup/bottle of iced tea. Not too sweetened, of course.
Can’t say I’ve ever seen this on the shelves of my local grocery store, but hey if Obama’s using AND it’s organic and cheap? Well, sounds like my kind of drink.
The mint tea is amazing. Refreshing!