Stephanie L. Reyes Intro to Entrepreneurship M6. Case Analysis- Honest Tea June 27, 2016 Honest Tea Honest Tea’s competitive advantages is that it has a different product that is hard to find anywhere else. They offer a “very strong brand that is consistent with what is in the package and is very meaningful to customers”. Another advantage is that Honest Tea is the only bottled tea company whose products are all 100% USDA organic certified and it uses up to two-thirds less sugar in its teas unlike its competition. Honest Tea’s biggest competition includes Snapple, Lipton, and Arizona Iced Tea because they also offer tea beverages just like Honest Tea. Their competitive advantages are that its big and popular, and that they have …show more content…
Honest tea uses less sugar and its product is also organic. That to me as a consumer is a huge plus. If I were Seth’s advisor I would advise him to keep on enhancing and to market the features that make honest tea a special and unique product. The “Honest” in Honest Tea Led to Honest Tea’s own focus on social responsibility. It extended more than just its ingredients. Seth went into great lengths to educate consumers about the company’s ethical and socially responsible business practices. The Honest Tea company engaged in its Packaging Systems Optimization program to create a better club-store box. Seth Goldman modeled this acquisition by coke after a success and partnership of Groupe Danone, a large European food company and stony field farm. The farms mission was organic milk, yogurt and ice cream, therefore it was very similar to Honest Tea in many different …show more content…
"When we made the investment in Honest Tea, we did so because we saw that it had great potential to be a significant brand of the future. Three years after, the brand truly reflects where consumer demand is today and we are excited about being on the verge of still more growth," said Deryck van Rensburg, president and ceneral Manager, Venturing and Emerging Brands (VEB), Coca-Cola North America. "Beyond growth, having the unique vantage point of a minority investee and watching Honest Tea has helped our company in many other ways, from encouraging Coca-Cola to obtain organic certification at three of our facilities, to establishing a state of the art tea brewing and filtration system at a bottling plant. Additionally, it enabled us to participate with Honest in a number of sustainability initiatives on recycling. All of these efforts reflect why VEB has chosen to invest in entrepreneurs like the team at Honest—they provide a source of innovative ideas and energy that enhance our own efforts." - See more at Reference: