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2015 Mission Report - Honest Tea Mission Report Korakundah tea estate, Tamil Nadu, India Photo by...

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2015 Mission Report Korakundah tea estate, Tamil Nadu, India Photo by Theodore Kaye
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  • 2015 Mission Report

    Korakundah tea estate, Tamil Nadu, IndiaPhoto by Theodore Kaye

  • KEEPING IT HONEST | 2015 MISSION REPORT

    TABLE OF CONTENTS

    INTRODUCTIONLETTER FROM TeaEO . . . . . . . . . . . . . . . . . . . . 2LETTER FROM MISSION CONTROL . . . . . . 3

    CREATESOURCING SNAPSHOT . . . . . . . . . . . . . . . . . . 4SUPPLIER SPOTLIGHT . . . . . . . . . . . . . . . . . . . . 5PRODUCTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6PACKAGING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    CONNECTDONATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9CONSUMER ENGAGEMENT . . . . . . . . . . . . . 10CONTINUING THE CONVERSATION . . . . . 11

    CULTIVATEVOLUNTEERING . . . . . . . . . . . . . . . . . . . . . . . . . 12BETHESDA HQ . . . . . . . . . . . . . . . . . . . . . . . . . . . 13ACCELERATING IMPACT . . . . . . . . . . . . . . . . 14

    LETTER FROM THE TeaEOWelcome to our sixth annual Mission Report. You may ask, if Honest Tea has been in business since 1998, how come we only started putting out mission reports seven years ago? The answer has to do with the timing of our sale to The Coca-Cola Company. Of course, we tried to be mindful of our mission before we took in our first investment from Coke in 2008, but we realized that our stakeholders who gave us the benefit of the doubt when we were a small, independent company grew more skeptical when we became part of the worlds largest beverage company.

    So in 2009 we hired our first Director of Mission and started the annual discipline of reporting on how our enterprise impacts the ecosystem as well as our consumers. Though Im proud of our efforts as a mission-driven enterprise when we were an independent company struggling to survive, I can confidently state that our approach to our mission has been more comprehensive and effective since Coca-Cola's investment. Though scale is not the only way to measure the impact of our mission, its certainly notable that our brand has grown more than sevenfold in the seven years since Cokes first investment in Honest Tea.

    While we update the data around our organic and fair trade purchases consistently each year, we like to play around with the focus and format of each new Report so that it continues to function as a living document. This year we

    added my favorite new section, Real Talk, in which we get to highlight where we have come up short. Most corporate social responsibility reports take on the tone of cheerleading documents, but I find it more interesting to learn how a company is challenging itself. If we are being honest about where our world is in terms of diet and nutrition and environment and gaps in economic opportunity, its going to take a lot more real talk.

    We welcome your real talk too please let us know how you think we can improve this report and our efforts to more effectively address our mission.

    Honestly yours,

    Seth Goldman Co-founder and TeaEO

    | 2

  • KEEPING IT HONEST | 2015 MISSION REPORT | 3

    MISSION STATEMENTHonest Tea seeks to create and promote great-tasting, healthier, organic beverages. We strive to grow our business with the same honesty and integrity we use to craft our products, with sustainability and great taste for all.

    A MESSAGE FROM MISSION CONTROL

    This past Spring, I had the good fortune to travel to India to visit some of the estates where we source organic & fair trade black tea leaves. I was with a small team from Honest Tea & Coca-Cola made up of people from purchasing, marketing, mission and sales. The purpose of the trip was to connect, listen and learn about the ways life has improved and the challenges these communities still face.

    Organic and fair trade have always been core to the Honest Tea mission. 3rd-party certifications help us maintain trust and transparency with our partners, especially in remote, impoverished agricultural regions like northeast India. But this experience reminded me theres no substitute for developing personal relationships. We have the data to show certifications can help improve quality of life measures... Its another thing entirely to experience the mix of hope and uncertainty in the eyes of a tea plucker right in front of you.

    Our Brand Director, Ami Mathur, expressed this sentiment well in one of our monthly email newsletters:

    I left [India] inspired. And I left proud. Proud to work for a brand that is refreshingly honest and one that truly wants to leave a mark in this world and the lives of people."

    We hope youll enjoy meeting the tea pluckers and estate workers from India (profiled in this report, on our website and on social media) as much as we did. Keep the conversation going and share your honest story with us.

    PROMOTING HEALTH & WELLNESS

    REDUCING OUR ENVIRONMENTAL FOOTPRINT

    CREATING ECONOMIC OPPORTUNITY

    MAINTAINING TRANSPARENCY

    BUILDING COMMUNI-TEA

    THE 5 PILLARS OF OUR MISSION

    WERE NOT PERFECT, JUST HONEST Weve always tried to be open and transparent about our business and products. We believe that you have a right to know about both our triumphs and our failures, and we hope that youll support us as we continue to evolve and improve. Luckily, research shows that 87% of global consumers believe its okay if a company isnt perfect, as long as it is honest about its CSR efforts (2015 Cone Comm./Ebiquity study). These REAL TALK call-outs are our way of highlighting some of our missed opportunities, in an effort to hold ourselves accountable and share lessons learned for others on a similar path.

    REAL TALK

    We may not always give the answer or make the decision you want, but we promise were listening.

    Honestly,

    Jenny Burns, Director, Mission

    Honest team members with tea pluckers, Assam, India

    https://www.honesttea.com/about-us/our-mission/

  • KEEPING IT HONEST | 2015 MISSION REPORT

    CHOOSING THE RIGHT IMPACT METRICSAlthough our sales increased in 2014, youll notice that our pounds of organic ingredients purchased did not increase at the same rate. This is due to some forward buying of ingredients in 2013 based on variable growing seasons and availability. Knowing this mis-match of purchases and production will become more common as we grow, we considered switching the way we report our ingredients from purchased to sold for each calendar year. But we want to keep the reporting as consistent as possible, so were sticking with purchases.

    REAL TALK

    CREATE | 4

    SOURCING SNAPSHOT

    261,154,335

    30%

    SERVINGS SOLD IN 2014

    6,722,336 LBS. ORGANIC INGREDIENTS PURCHASED IN 2014

    $200,124 FAIR TRADE PREMIUMS PAID IN 2014

    POUNDS OF ORGANIC INGREDIENTS

    6,722,336

    6,536,948

    4,938,868

    4,367,000

    3,900,000

    2,400,000

    FAIR TRADE PREMIUMS

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    0 $250,000

    $200,124

    $155,169

    $111,506

    $21,678

    $29,313

    $13,388

    $126,304

    $48,174

    $27,848

    $19,0422009

    2010

    2011

    2012

    2013

    2014

    0 8M

    CREATE

    UNIT SALES GROWTH IN 2014

  • KEEPING IT HONEST | 2015 MISSION REPORT

    REAL TALKTULSI AND FAIR TRADE CERTIFICATIONWe introduced our first bottled herbal tea made with organic tulsi, a sweet basil from South Asia, in 2012, and not long after that we created a freshly brewed version for restaurants, called Lemon Herbal Tea. Not only do we love tulsi's lightly sweet and flowery flavor, but we have also developed a close relationship with the farmer cooperation that supplies it.

    Tulsi is one of the only herbs we source that is not Fair Trade Certified through Fair Trade USA. We have initiated conversations with them about gaining certification. However, the effort and cost of certification only becomes feasible at a certain minimum purchase volumeand as of now, based on our sales of these varieties, we cannot commit to buying enough tulsi for this to happen. We will continue to look for ways to support this farmer group and we hope to share news of their certification in the future.

    school bus, and subsidize stoves for more community members.

    The Korakundah tea estate can be found in the blue mountains of Tamil Nadu, an Indian state roughly 2,000 miles south of Assam. Korakundahs general manager was one of the first fair trade officers in India over 25 years ago, helping to set and implement its standards. Today the community is flourishing. Workers use fair trade premiums for retirement plans and pension programs, as well as for university scholarships for high-performing youth at the local school. Premiums also have been used to help fund a hospital thats open to the broader community and an orphanage that cares for around 40 boys and girls.

    CHECKING IN WITH THE TULSI FARMERSIn 2012 Seth visited our organic tulsi suppliers in Bengaluru, India. He participated in a ribbon-cutting ceremony for a drying shed that would enable the farmers to earn 26x more value per kilo. When our Director of Mission, Jenny, visited the same community this past spring, the farmers proudly showed her two additional sheds that had been built to accommodate the growing demand for the herb. She also helped break ground on a permanent facility that will allow the community to process the leaves on site.

    CREATE | 5

    SUPPLIER SPOTLIGHT A TALE OF TWO TEA ESTATESMembers from our tea-m traveled to India this past May to visit with farmers and learn more about the communities needs. The Tonganagaon and Korakundah estates both grow organic and fair trade black tea, but thats where the similarities end.

    Tonganagaon is located in a remote area of Assam in northeast India. The estate has a long history that began under the British and then transferred to Indian ownership after the country gained its independence. The community was almost decimated in the 1990s after the owners declared bankruptcy, living with little income or social services for over a decade.

    A family-owned company purchased the estate in 2008 and set out to revitalize it by introducing organic and fair trade standards. The workers were initially skeptical that the new management would deliver on the promise of fair trade certification, but they have since come to trust and appreciate it as theyve experienced the benefits. The workers voted to use the premiums for mosquito nets, cooking staples, bicycles, and gas cooking stoves. They are working on plans to build a permanent school house, purchase a

    Tonganagaon tea estate, Assam, India

    Korakundah tea estate, Tamil Nadu, India

    Harvesting organic lemon tulsi

    CREATE

  • KEEPING IT HONEST | 2015 MISSION REPORT

    NEW PRODUCTS: WATERMELON LEMONADEThis year we added Watermelon Lemonade to our Summer Refreshers line. Along with the rest of the Refreshers, Watermelon Lemonade is sweetened with Fair Trade Certified sugar, supporting our sugar farmers in Paraguay.

    UNSWEETENED HERBAL TEASIn early 2015 we unveiled two new unsweetened, caffeine-free herbal iced teas as part of our glass-bottle line. Cinnamon Sunrise and Ginger Oasis Herbal teas both use brewed organic herbs to create a bold and satisfying taste. These refreshing zero-calorie drinks also support the American Beverage Association's commitment to cut beverage calories consumed per person by 20% by 2025.

    CREATE | 6

    PRODUCTS A NEW PARTNERSHIP WITH WENDYSThis year we took a big step in our journey to make organic products accessible to more people. In May 2015, over 5,800 Wendys locations across the country began exclusively offering our brewed Tropical Green Tea. The tea leaves and cane sugar are both certified organic and fair trade, and contains around 120 calories per 20 fl. oz. serving. This partnership will also have a significant impact on our global supply chain: in 2015, we estimate that we will purchase approx. 1 million pounds of organic ingredients for the Wendys product alone. Compare this with our organic purchases across all of our products in 2007 ( just before Coca-Cola invested in us) of approx. 800,000 pounds in total.

    TRANSITIONING TO FAIR TRADE CERTIFIED CANE SUGAR ACROSS OUR PORTFOLIOIn 2014 we transitioned the organic cane sugar in our 16 fl. oz. glass bottled teas and 32 fl. oz. summer refreshers to Fair Trade Certified. We source it from a farming cooperative in Paraguay that uses its fair trade

    premiums to support healthcare services, farming equipment, schools, and microloans.

    Were excited to announce that earlier this year we completed the transition of cane sugar to fair trade in the freshly brewed iced teas we offer at restaurants and cafeterias as well. Were now working to convert the cane sugar in our teas in 16.9 fl. oz. plastic bottles, and hope to have that finished within the year. Well update the information on our labels and website accordingly.

    CONVERTING HONEST FIZZ TO CERTIFIED ORGANICEarlier this year we transitioned all of our zero-calorie Honest Fizz varieties to USDA organic. We had launched the line in 2013 using conventional zero-calorie sweeteners because organic sweeteners would have made our sodas twice as expensive as non-organic options. However, over the last few years the cost of conventional sweeteners has risen while the price of organic sweeteners has decreased. Using organic sweeteners still increases our costs by roughly 70%, but we found a way to realize packaging savings by shifting from a slim can to a more standard soda can.

    In addition to the organic conversion, we also introduced a new variety Golden Ginger Ale.

    Honest Tropical Green Tea in 5,800 Wendy's locations

    CREATE

  • KEEPING IT HONEST | 2015 MISSION REPORT

    REAL TALK

    CREATE | 7

    GOODBYE TO SKUSIts always hard to say goodbye to our products:

    BERRY HIBISCUS LEMONADE

    (NOT TOO) SWEET TEA

    FROM HONEST ADE TO HONEST TEAIn January, we reformulated our 3 Honest Ade varieties into herbal teas by infusing brewed ingredients such as hibiscus, orange peel and lemon balm. This move brought us closer to our roots as a brewed tea company while providing a similarly great "just a tad sweet" taste.

    As we grow and reach a wider breadth of tea drinkers, we occasionally decide to update some of our recipes. Rest assured that we do not take this lightly (check out Seths article about the trials and tribulations of "firing" a product).

    We reformulate products for two main reasons: 1) we run into challenges sourcing a particular ingredient, or 2) we believe we're improving the taste. We know not everyone will like every change we make, but we try to be as responsive as possible to the feedback.

    In one instance earlier this year, we changed our Half Tea and Half Lemonade recipe to include stevia. Our research had told us the change would be well received but as soon as the new formulation hit the shelves we quickly heard from fans that it was not. So many people contacted us to share their disappointment that we switched the recipe back within a month.

    Other times, the reviews are more mixed. We also reformulated our Peach White Tea to black Peach Tea to give the drink a more robust tea base and a juicier peach flavor, bringing the sugar levels in line with our other black teas in the plastic bottle. We received many letters praising the change, but also received many filled with confusion and frustration.

    We decided to stick with the new Peach Tea recipe, but regret that so many of our loyal fans felt blindsided. We should have done a better job communicating the changes. Meanwhile, the sales of our Peach Tea have grown since the reformulation.

    UPDATING OUR RECIPES

    CREATE

    Have you recently changed the formulation of this product? I think it used to be called "White" tea or peach. This is about the only bottled beverage I drink and I noticed a change in the flavor, calorie content (about 5 grams more sugar) and the label graphics. I have to say, I LOVE the new formulation!! I can taste the peach flavor much more than in the previous formulation. I'm really pleased with the change. I think the new one tastes better than the older one and I thought that one tasted pretty good! Thanks for making a great product even better!"

    This is just a sad lament that Peach White Tea is gone. It was my favorite iced tea in the world, and I had an Amazon subscription for a case a month. Then you changed it to Peach Tea and made it sweeter. I have tried to get used to it, but I can't. Last Wednesday I had a bottle of old Peach White Tea that I found in a store, and that only confirmed my judgment that the two teas are substantially different products. I canceled my subscription. Apparently I am in the minority, and most people prefer a sweeter drink, but for me it was perfect when it was truly Just a Tad Sweet."

    https://www.honesttea.com/blog/seth/i-love-you-youre-fired/

  • KEEPING IT HONEST | 2015 MISSION REPORT

    REAL TALK

    CREATE | 8

    PACKAGING HONEST KIDS ALSO COMES IN A BOXThis year we launched new packaging for our Honest Kids line in club and food service locations after a successful test in the northeast. The new aseptic Tetra Brik is recyclable in over 50% of U.S. municipalities, helping to address our concerns about the recyclability of the pouch packaging. It is also easier to hold and open, and provides a better value per case. We expect to transition more than a quarter of the Honest Kids business to the aseptic container, and plan to keep the remaining business in pouches that are a better fit for some markets for the time being.

    THE PLASTIC IN OUR 16.9 FL OZ BOTTLE Our line of teas in 16.9 fl. oz. plastic bottles has gone through a number of redesigns over the last few years. Weve made some mistakes along the way (we heard from you loud and clear about that dome on the bottom), but we have learned from each of them.

    This year, we introduced a total package redesign featuring updated ingredient imagery and a taller bottle. While the bottles are made from recyclable #1 PET plastic, they do not feature any recycled or plant-based plastic material.

    As a company selling most of our product in single-serve containers, we are painfully aware that one of our significant environmental impacts is our packaging. But one of the major barriers to incorporating recycled or plant-based plastic material comes from the fact that we brew our tea right before filling the container. The bottle must be designed to withstand a lot more heat and pressure than beverages filled at colder temperatures.

    We found the high level of engineering and quality testing required to incorporate a new type of plastic in time for this redesign was prohibitivebut we are actively working on it for the future.

    In the meantime well continue to encourage our consumers to recycle their bottles through programs like the Great Recycle, and by placing the How2Recycle logo on our labels.

    TERRACYCLEHonest Tea was a founding member of the TerraCycle Drink Pouch Brigade established in 2007 to help keep pouches out of landfills. To learn more, visit www.terracycle.com. Numbers as of June 22, 2015.

    4,775 NEW COLLECTION LOCATIONS ADDED IN 2014

    82,001 COLLECTION LOCATIONS

    TERRACYCLE CUMULATIVE SINCE 2007

    235,480,339 DRINK POUCHES COLLECTED

    OF ALL BRANDS

    2,590,284 POUNDS OF DRINK POUCHES

    DIVERTED FROM LANDFILLS

    $4,500,000 OF CHARITABLE DONATIONS GENERATED

    BY THE DRINK POUCH BRIGADE

    CREATE

    https://www.terracycle.com/en-US/

  • KEEPING IT HONEST | 2015 MISSION REPORT

    PROGRAMSPOTLIGHT

    ENABLING PRODUCE GARDENS AND NUTRITION EDUCATION IN SCHOOLSAs part of our mission, we support organizations that aim to teach kids where their food comes from, often by growing and harvesting it themselves. This past year, we sponsored $61,000 worth of programs run by FoodCorps and Whole Kids Foundation.

    Through donations in part from our National Honesty

    CONNECT | 9

    DONATIONSIn 2014, we joined more than 1,200 businesses as members of 1% For the Planet. In doing so, we committed to donate the equivalent of at least one percent of sales from our tea line in 16 fl. oz. glass bottles to organizations within the 1% For The Planet network. We are now proud to report that we exceeded our commitment in the 2014 calendar year.

    IN-KIND DONATIONSWe donated over 11,500 Honest Tea products and wearables (e.g. gardening gloves) to non-profits across the country.

    3.2% OF 2014 SALES EQUIVALENT DONATED FROM OUR GLASS BOTTLED TEA LINE

    CONNECT

    Jackson, MS

    Washington D.C.

    I had my last lesson with the after school club I've been serving for two years. I was really proud to see the kids feel at home in the garden, knowing the names of the vegetables they pulled, excited about being out there. I have really seen this group grow and learn so much and I was happy to see some evidence that I had made a difference in a few kids' lives." -FoodCorps service member, Guildford County, North Carolina

    Through donations in part from our National Honesty Index campaign, we enabled FoodCorps to make schools healthier places for kids to eat, learn and grow by providing hands-on nutrition education and school gardens for nearly 3,000 students. We also sponsored (and participated in) a national service day for their Corps members in 16 states and D.C. last November. More than 150 volunteers participated in a variety of projects, from pulling the last carrots of the fall harvest, to winterizing a school garden, to gleaning, harvesting and processing meals for food-insecure neighbors. The event served as a reminder of how doing community service for even just a few hours can impact the community in a positive way, said FoodCorps service member Krizl Soriano.

    Whole Kids Foundation used scan-back donations from the sale of our Honest Kids pouches in Whole Foods Market to provide school gardens and salad bars at schools across the country. We also awarded a garden grant to a school near Austin, Texas as part of a store display contest we held last summer.

    http://bethesdagreen.org/http://www.cityyear.org/dchttp://onepercentfortheplanet.org/https://greenschoolsnationalnetwork.org/https://www.wholekidsfoundation.org/http://nourishnow.org/http://www.playworks.org/http://growingsoul.org/https://www.foodcorps.org/http://dcgreens.org/https://netimpact.org/

  • KEEPING IT HONEST | 2015 MISSION REPORT

    NATIONAL HONESTY INDEX 2014

    CONNECT | 10

    CONSUMER ENGAGEMENT AT THE STORE AND ON THE STREETOur mission extends beyond our products, thanks to the efforts of our regional sales and marketing teams. Here are some highlights.

    National Honesty Index - Hoboken NJ

    $12,792 COLLECTED & DONATED

    TO FOODCORPS

    The Great Recycle - Union Square NYC

    THE GREAT RECYCLE

    376,373

    560,894 CONTAINERS COLLECTED IN 2014

    CONTAINERS COLLECTED IN FIRST 3 YEARS (APRIL 2012 - APRIL 2015)

    BIKE GIVEAWAYS

    756 BIKES WON BY FANS IN STORE DRAWINGS

    (JUNE 2014-MAY 2015)

    ROCK THE LUNCHBOX

    100REUSABLE LUNCH SACKS WON BY FANS

    CONTAINING LUNCH-APPROPRIATE ITEMS FROM BRAND PARTNERS IN 2014

    CONNECT

    95%PARTICIPANTS WERE HONEST

    20,000 TREE PLANTINGS FUNDED IN RURAL COMMUNITIES AROUND THE GLOBE

    (JAN 2014 - DEC 2015)

    TREES FOR THE FUTURE

    Moringa seedlings

    TREES.ORG

    https://www.honesttea.com/nationalhonestyindex/http://www.rockthelunchbox.com/http://www.trees.org/

  • KEEPING IT HONEST | 2015 MISSION REPORT

    Timeline Photos

    Like . Comment 72.3k

    CONNECT | 11

    CONTINUING THE CONVERSATIONIn 2014 and 2015, Seth continued to spread the Honest Tea story across the country. Some of his speaking engagements included:

    Sustainable Business & Social Impact Conference- Fuqua Duke Net Impact

    Bethesda Green Investor Luncheon Inner City 100 Symposium Halcyon Incubator Series BevNet Live Conservation International Winter Fancy Food Show Chicago Department of Health

    Private Company Governance Summit

    SOCIAL MEDIAOur goal is to have open and honest communication with as many people who contact us as possible whether its with a question, comment, or complaint.

    We also enjoy communicating with our fans on Facebook, Twitter, and Instagram as our online presence continues to grow.

    82% INQUIRIES (17,589 TOTAL)

    CALL CENTER FEEDBACK

    3% COMPLIMENTS (633 TOTAL)

    15% COMPLAINTS (3,184 TOTAL)

    525,733 FANS IN JULY 2015,

    UP FROM 452,000 FANS IN AUGUST 2014

    TWITTER ENGAGEMENT (IN CALENDAR YEAR 2014):

    FACEBOOK ENGAGEMENT (IN CALENDAR YEAR 2014):

    45,697 FOLLOWERS IN JULY 2015,

    UP FROM 29,400 FOLLOWERS IN AUGUST 2014

    20,285 COMMENTS 866,753 LIKES

    108,533 SHARES 800 POSTSPost

    10,088 RETWEETS18,346 TWEETS

    This past year our call center received over 21,000 phone calls, letters, and emails from our consumers. We saw a 19% increase in complaints over prior year. Numbers from June 2014 - May 2015.

    CONNECT

    78% - INGREDIENTS

    7% - AVAILABILITY

    98% - PRODUCT & BRAND

    1% - LABELING/GRAPHICS

    47% - PRODUCT & BRAND

    25% - INGREDIENTS

    15% - PACKAGE

    Timeline Photos

    Like . Comment 72629

    https://www.facebook.com/HonestTeahttps://twitter.com/honesttea

  • KEEPING IT HONEST | 2015 MISSION REPORT CULTIVATE | 12

    VOLUNTEERINGWe sponsored and participated in four Honest Tea group volunteer days in 2014. Honest Tea employees volunteered a total of 260 hours at these four events.

    Corporate Volunteer Council Service Day: Honest Tea co-hosted a park and stream clean up through the Montgomery County CVC. Activities benefited Rock Creek Conservancy and Montgomery Parks.

    FoodCorps Service Day: Honest Tea employees partnered with FoodCorps in service days across 16 states (and D.C.). Activities focused on feeding nutritious meals to food insecure communities.

    Honest Tea Annual Service Day: Honest Tea employees across the country volunteered their time at 7 local community farms, including the K Street Farm in D.C.

    Martin Luther King Day Service Day: Honest Tea employees, friends, and families served with City Year at Eastern High School in Southeast D.C. The tea-m helped paint murals, prepare sandwiches for a local food bank and write thank you letters to U.S. troops.

    REAL TALKENCOURAGING EMPLOYEE SERVICE One of the perks that we offer our employees is two personal volunteer days to be taken during working hours, in addition to company service days. We were really excited to offer this benefit, since we know that our employees enjoy volunteering and often do so outside of working hours. We thought it would give them more flexibility to serve organizations they are passionate about.

    However, when we evaluated the numbers, we found that only two people took advantage of this opportunity in 2014. We heard from our employees that while the benefit is nice in theory, they find it difficult in practice to take the time off. They also prefer to serve in a group with their colleagues. In response, weve offered more structured service opportunities on a quarterly basis.

    Corporate Volunteer Council Service Day

    FoodCorps Service Day

    Honest Tea Annual Service Day

    CULTIVATE

  • KEEPING IT HONEST | 2015 MISSION REPORT CULTIVATE | 13

    BETHESDA HQ SNAPSHOTWeve experienced some changes here at Bethesda HQ over the last year. You may have noticed that our number of employees has dropped from roughly 150 to 40. Not to worry many roles were moved into groups within Coca-Cola North America to work with multiple brands in addition to Honest. We believe collaborating with other brands can help magnify our impact.

    HONEST TEA EMPLOYEE FEEDBACKThis year we conducted an anonymous survey to get feedback on our business and culture from Honest Tea employees. Heres a look at what our employees have to say about working here.

    What excites you about the direction Honest Tea is taking?

    The world/business of Honest Tea is ever evolving. The brand has showed consistent growth and innovation since I started, opening new doors for me and allowing me to face new challenges.

    What do you find most motivational about working for Honest Tea?

    Strong values, ethics, clear direction, support from above the positive impact of our business on consumers and on the environment and our supplier communities

    How could Honest Tea help you do things more efficiently and better?

    360 reviews and role reversals could help solidify job respectability and responsibilities with less micromanagement.

    What changes in direction would you like Honest Tea to make?

    To have more knowledge on where the company is going and where my future is headed with the company.

    REDUCING HQ PAPER USAGE Since 2012, we have decreased our paper use in the Bethesda office per person by 48%. In 2012 we printed 20 pages per day per person, assuming an average of 35 people in the office. Over this past year (July 2014-June 2015), we printed 10.3 pages per day per employee, assuming an average of 25 people in the office. We continue to use paper made from sugar cane waste to further reduce our footprint.

    AWARDSWere proud to be recognized for our commitment to our consumers, employees, and community.

    Washington Business Journal: 2014 Healthiest Employers

    Beverage World Magazine: 2015 #1 Beverage Disruptor; Seth Goldman

    Montgomery County Corporate Volunteer Council: 2014 Corporate Community Service Award

    Maryland Dept. of the Environment: 2015 Maryland Green Registry Leadership Award

    Q:

    Q:

    Q:

    Q:

    A:

    A:

    A:

    A: 2014 CVC Corporate Community Service Award

    AS OF JUNE 2015

    40TOTAL NUMBER OF

    EMPLOYEES

    62.5% WOMEN

    30%MINORITY

    BIKES GIVEN TO HONEST EMPLOYEES

    IN 2014

    11 OUT OF 28 EMPLOYEES BASED IN THE BETHESDA

    OFFICE WHO COMMUTE BY BIKE OR METRO

    37

    CULTIVATE

  • KEEPING IT HONEST | 2015 MISSION REPORT

    ACCELERATING IMPACTOur mission continues to scale as our brand grows.

    Take a look at our current impact compared to the year before The Coca-Cola Company first invested in Honest Tea.

    ANNUAL SERVINGS SOLD

    34,033,275 2007 2014

    261,154,335

    CULTIVATE | 14

    CULTIVATE

    ANNUAL POUNDS OF ORGANIC INGREDIENTS PURCHASED

    790,000 2007 2014

    6,722,336

    ANNUAL POUNDS OF FAIR TRADE INGREDIENTS

    PURCHASED

    72,000 2007 2014

    1,550,856

    $29,313 2007 2014

    $200,124

    ANNUAL FAIR TRADE PREMIUMS GENERATED

  • 4827 Bethesda Avenue | Bethesda MD 20814800 865 4736 | www.honesttea.com

    @honesttea facebook.com/honesttea 2014 Honest Tea Company Meeting Hot Springs, VA

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