Honest Tea (US) is a bottled organic tea company based in Bethesda, Maryland. It was founded in 1998 by Seth Goldman and Barry Nalebuff. It is a wholly owned subsidiary of The Coca-Cola Company.

 

Honest Tea is also a tea brand in Australia, a trademark of Teavolution Pty Ltd- a small company based in Sydney founded in 2004 by businesswoman Annie Young. In 2007, Teavolution won a legal challenge from the US firm, confirming the company's rights to the brand in the Australian market. Costs were awarded to Teavolution and paid by Honest Tea, however Coca Cola in Australia is re-challenging Teavolution once again over the brand, following the sale by the founders of Honest Tea (US) to the multinational. The action is for alleged non-use of the Honest Tea brand in Australia, however the business remains active and selling tea in the Australian market.

 

Honest Tea US products started at a local Fresh Fields, later acquired by Whole Foods Markets. Honest Tea US began with its first shipment of 15,000; ten years later the product is being distributed by the tens of thousands. Originally their products were notable for being almost entirely tea with a tiny amount of sugar. Since 2007, they have expanded their sweetened beverage line while distribution of their barely sweetened teas shrank. Honest Tea received its United States Department of Agriculture (USDA) organic certification in 2004, and was acknowledged as one of the 500 fastest growing private companies.

 

The Coca-Cola Company purchased a 40% stake of the US company at $43 million in 2008.It bought the rest of the company in 2011.

 

In 2009, Honest Tea US got an unpaid endorsement when The New York Times revealed that the White House is now stocking Honest Tea, as it is President Barack Obama's preferred beverage- specifically, the "Black Forest Berry" and "Green Dragon" flavors.