Coca-Cola Company phasing out one of its longtime beverages

U.S.

Coke products are on display in a store in Miami, Florida. The Coca-Cola Company announced this week that one of its ready-to-drink tea beverages will be phased out by 2023. (Joe Raedle/Getty Images)

(NEXSTAR) – Coca-Cola is reading the tea leaves — and they aren’t too optimistic about Honest Tea.

The beverage, which was founded in 1998 and acquired by the Coca-Cola Company in 2011, will be phased out of Coca-Cola’s portfolio by the end of the year, the company confirmed earlier this week.

Coca-Cola cited decreasing sales, as well as supply challenges for glass bottles, as reasons for its decision to discontinue Honest Tea. The company also believes its other ready-to-drink tea brands — Gold Peak and Peace Tea — are better positioned for growth.

“Shifting from a three-brand tea portfolio to a prioritized two-brand tea lineup will free up investment resources and supply chain capacity to better meet consumer needs and capture share in the category,” said Sabrina Tandon, the group director of ready-to-drink teas for Coca-Cola North America, stated in a press release.

The Coca-Cola Company purchased a 40% stake in Honest Tea in 2008, ten years after the brand was founded. Honest Tea was fully acquired by Coca-Cola in 2011. (Aaron Davidson/Getty Images for SOBEWFF®)

Despite dropping Honest Tea from its portfolio, Coca-Cola will continue to produce its Honest Kids line of beverages. The company will also retain ownership of the Honest Tea brand, despite phasing out its products.

Aside from Honest Tea, Gold Peak and Peace Tea, the Coca-Cola Company’s coffee and tea portfolio includes Fuzetea and several brands sold largely overseas, including Ayataka, Costa Coffee, Dogadan and Georgia.

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