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U.S.-China Greener Consumption Forum March 22, 2013

The Journey Towards Sustainable Business

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• Co-founders Seth and Barry start operations out of Seth’s house in Bethesda, MD - February, 1998

• First sale was to Whole Foods regional office with five thermoses and empty Snapple bottle

• Introduced world’s first organic bottled tea – 1999; Introduced the world’s first Fair Trade Certified™ bottled tea – 2003

• February 2008 – The Coca-Cola Company makes a minority investment (40%) in Honest Tea

• March 2011 - The Coca-Cola Company acquired Honest Tea

“We Were Thirsty”

Company Background

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HONEST

Help spread Fair Trade labor standards in the developing world

Help eliminate billions of

calories from the American diet

Support the growth of organic

agriculture; promote

recycling Honest Tea

15 Years Ago…

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Why Honest Tea Works As a Brand

Authentic Ingredients

Authentic Taste

Authentic Relationships

Just A Tad Sweet

Authentic Marketing

Honest Company Culture

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Taking Mission to Scale

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Taking The Great Recycle to Scale

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Taking Community Impact to Scale

0 4000 lbs. recycled in year one

0 200,000 lbs. recycled in first two years

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• Honest Tea created a lower-calorie, less-sweet, organic thirst quencher for kids, but

• The material used to make these pouches is a multi-layer laminate, it isn’t recyclable and most end up in a landfill.

Honest Tea and TerraCycle teamed upto launch the Drink Pouch Brigades

Drink Pouch Brigades

March 2011

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• 1999 – introduced first organic certified bottled tea

• Partnered with I’tchik Herb, a woman-owned company on the Crow Reservation, to supply peppermint

Our Journey Toward Fair Trade

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Quenching Mission Before Taste

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Quenching Mission and Taste

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Organic & Fair Trade Tea Garden – Tamil Nadu, India

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2009

1/12 Varieties

2011*

* Tulsi is in the process of being converted to FT

19/19 FT Tea Varieties

2003

A Fair Trade Journey

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Early Stage Tulsi Agriculture – Organic but not yet FairTrade

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Proving Product First

•66% Annual Growth

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 •Sustainability is a journey•Products must be market-driven or market-driving: mission is not enough•Supply chain reliability is critical•Each community has different needs

Closing Thoughts

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