Honest Tea Sales Are Humming as Summer – and Cutover to First Coke Bottlers – Approaches    Tho Honest Tea is still putting finishing touches on 1st, still undisclosed transitions to Coca-Cola bottling network, it’s already reaping benefits of its place in Coke orbit, teaming with soft drink giant (and 40% investor) on ecological initiatives such as Bethesda Green in home Md market and moving kids’ line into Minute Maid system.  While lotsa niche bevs that end up in hands of multinational giants work hard to obscure tie, Honest Tea co-founder Seth Goldman said he has no intention of doing so with Coke: given brand’s mission to democratize organics, “we’re absolutely proud to be associated with them,” he declared. 

Given brisk growth rate, Coke execs probably are just as proud to be associated with tea brand.  Seth said May shipments clocked in at 5 mil+ cases, more than double 2.3 mil cases of May 07 despite rainy weather in much of country.  Apr had enjoyed similarly sharp uptick, +113%.  With cutover to initial Coke bottlers not planned until summer, burgeoning sales all are from existing DSD network, along with increasingly prominent chain presence including now-national role in Safeway.  To fill demand, Bowman Apple in Va has cranked up output thanks to major investment by Honest Tea that enables copacker to produce plastic-bottle line at double rate brand has managed in past.  Reducing reliance on product produced on W Coast in turn should trim freight costs running at $3K per truck, he said. 

Given goal of making organics price-accessible to mainstream consumers, Seth said he’s eager to leverage efficiencies of Coke system ASAP.  Honest Kids healthy-juice line will move next mo to Minute Maid system nationally, with KO unit also offering production help on pouched line.  Coke is also stepping in to help fund – and brand – initiatives such as Bethesda Green.  Tho another Coke affiliate, Vitaminwater, has become ubiquitous TV-ad presence since acquisition, Goldman said Honest Tea will stick by guerrilla marketing approach that’s served brand well so far, with 20+ interns recruited for sampling teams around US.  It’s involved in John Mayer tour this summer and is reprising Janis bike giveaway from last summer, this time offering 1,000 of the bikes.