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	<title>Comments on: Coke Swallows Honest Tea</title>
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	<description>This blog is about the impact of business on society.</description>
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		<title>By: The Ethicurean: Chew the right thing. &#187; Blog Archive &#187; Digest - Blogs: Hogger blogger wild, rural buh-byes, trashing the Clintons</title>
		<link>http://www.marcgunther.com/2008/02/05/coke-swallows-honest-tea/comment-page-1/#comment-39378</link>
		<dc:creator>The Ethicurean: Chew the right thing. &#187; Blog Archive &#187; Digest - Blogs: Hogger blogger wild, rural buh-byes, trashing the Clintons</dc:creator>
		<pubDate>Wed, 27 Feb 2008 01:30:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=323#comment-39378</guid>
		<description>[...] Integri-Tea: Coca-Cola is buying a 40% share of Honest Tea, one of the few bottled teas that isn&#8217;t mostly high-fructose corn syrup. Will they give up their principles and dump HFCS into the tea? Marc Gunther is optimistic the answer&#8217;s no after talking with numerous Coke executives, and so (we think) is Sam Fromartz after a thought-provoking interview with company CEO Seth Goldman. [...]</description>
		<content:encoded><![CDATA[<p>[...] Integri-Tea: Coca-Cola is buying a 40% share of Honest Tea, one of the few bottled teas that isn&#8217;t mostly high-fructose corn syrup. Will they give up their principles and dump HFCS into the tea? Marc Gunther is optimistic the answer&#8217;s no after talking with numerous Coke executives, and so (we think) is Sam Fromartz after a thought-provoking interview with company CEO Seth Goldman. [...]</p>
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		<title>By: Rodney North</title>
		<link>http://www.marcgunther.com/2008/02/05/coke-swallows-honest-tea/comment-page-1/#comment-37203</link>
		<dc:creator>Rodney North</dc:creator>
		<pubDate>Thu, 07 Feb 2008 16:01:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=323#comment-37203</guid>
		<description>For a reason I&#039;ll get to in a moment, I&#039;d like to remind us of some of the other small, but fast-growing green companies that have been snapped up in recent years:) Green &amp; Black, Dagoba, Tom&#039;s of Maine, Silk, The Body Shop (ok, not so small), Burt&#039;s Bees, Annie&#039;s Homegrown.
(Phil Howard maps most of this in great &lt;a href=&quot;http://www.msu.edu/~howardp/organicindustry.html&quot; rel=&quot;nofollow&quot;&gt;detail&lt;/a&gt;

Something we can all lose when these kinds of firms get bought up is a diversity of voices. When you consider the lax regulatory environment it has been up to civil society and often small, mission-driven companies to raise awareness over issues like bovine growth hormone, GMO&#039;s, animal welfare or the poverty of farmers in developing countries - and to do the very hard work of creating the first market niches for alternative products that addressed these problems. (Just as Seth made a market for organic bottled tea.)

The large corporations have consistently been either on the wrong side of these issues, or on the sidelines, or had to be embarrassed into taking action, often merely token. 

So when I see Honest Tea get bought out I have to acknowledge, yes, they&#039;ll buy &amp; sell more organic tea - a good thing - BUT Iâ€™m also going to assume we&#039;ll not hear Seth use his new vantage point to speak out against, say, the evils of GMO&#039;s (as most of Coke&#039;s corn syrup is probably derived from GMO corn). 

Admittedly, it did not seem Seth was outspoken on controversial issues before (correct me if I&#039;m wrong) but other green entrepreneurs, like Steve Demos were, and when Steve&#039;s values clashed with his new corporate bosses at Dean he was effectively silenced. 

Overall, I think these transactions have the effect of &quot;quieting&quot; the marketplace, and thereby overall slowing the pace of change. A conclusion that I admit cannot be quantified or tested.
By the way, back in 2000 Marjorie Kelly (author of &quot;The Divine Right of Capital&quot;) wrote a great &lt;a href=&quot;http://www.esopbuilders.com/articles/the-legacy-problem.pdf&quot; rel=&quot;nofollow&quot;&gt;article&lt;/a&gt; about all of this. 

The only thing that I think has really changed since then is that both society and the marketplace have become more green, etc, which in turn has given folks like Gary Hirschberg, Seth and Tom Chappell a stronger position to negotiate from when selling. Still, even if thatâ€™s true, that amounts to only incremental change, and I think many of us in this line of work still think we can and should aim higher. 

Note: we at Equal Exchange speak about this from personal experience. As a 100% Fair Trade, worker-owned co-operative specializing in organic food &amp; beverages, with $29M in sales, we, too, are at that â€œawkwardâ€ stage for independent food companies, let progressive ones. But weâ€™re convinced that there have to better options than selling out. If nothing else, farmer-owned co-operatives like Organic Valley ($250M and growing) suggest it can be done.</description>
		<content:encoded><![CDATA[<p>For a reason I&#8217;ll get to in a moment, I&#8217;d like to remind us of some of the other small, but fast-growing green companies that have been snapped up in recent years:) Green &amp; Black, Dagoba, Tom&#8217;s of Maine, Silk, The Body Shop (ok, not so small), Burt&#8217;s Bees, Annie&#8217;s Homegrown.<br />
(Phil Howard maps most of this in great <a href="http://www.msu.edu/~howardp/organicindustry.html" rel="nofollow">detail</a></p>
<p>Something we can all lose when these kinds of firms get bought up is a diversity of voices. When you consider the lax regulatory environment it has been up to civil society and often small, mission-driven companies to raise awareness over issues like bovine growth hormone, GMO&#8217;s, animal welfare or the poverty of farmers in developing countries &#8211; and to do the very hard work of creating the first market niches for alternative products that addressed these problems. (Just as Seth made a market for organic bottled tea.)</p>
<p>The large corporations have consistently been either on the wrong side of these issues, or on the sidelines, or had to be embarrassed into taking action, often merely token. </p>
<p>So when I see Honest Tea get bought out I have to acknowledge, yes, they&#8217;ll buy &amp; sell more organic tea &#8211; a good thing &#8211; BUT Iâ€™m also going to assume we&#8217;ll not hear Seth use his new vantage point to speak out against, say, the evils of GMO&#8217;s (as most of Coke&#8217;s corn syrup is probably derived from GMO corn). </p>
<p>Admittedly, it did not seem Seth was outspoken on controversial issues before (correct me if I&#8217;m wrong) but other green entrepreneurs, like Steve Demos were, and when Steve&#8217;s values clashed with his new corporate bosses at Dean he was effectively silenced. </p>
<p>Overall, I think these transactions have the effect of &#8220;quieting&#8221; the marketplace, and thereby overall slowing the pace of change. A conclusion that I admit cannot be quantified or tested.<br />
By the way, back in 2000 Marjorie Kelly (author of &#8220;The Divine Right of Capital&#8221;) wrote a great <a href="http://www.esopbuilders.com/articles/the-legacy-problem.pdf" rel="nofollow">article</a> about all of this. </p>
<p>The only thing that I think has really changed since then is that both society and the marketplace have become more green, etc, which in turn has given folks like Gary Hirschberg, Seth and Tom Chappell a stronger position to negotiate from when selling. Still, even if thatâ€™s true, that amounts to only incremental change, and I think many of us in this line of work still think we can and should aim higher. </p>
<p>Note: we at Equal Exchange speak about this from personal experience. As a 100% Fair Trade, worker-owned co-operative specializing in organic food &amp; beverages, with $29M in sales, we, too, are at that â€œawkwardâ€ stage for independent food companies, let progressive ones. But weâ€™re convinced that there have to better options than selling out. If nothing else, farmer-owned co-operatives like Organic Valley ($250M and growing) suggest it can be done.</p>
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		<title>By: Mark</title>
		<link>http://www.marcgunther.com/2008/02/05/coke-swallows-honest-tea/comment-page-1/#comment-37156</link>
		<dc:creator>Mark</dc:creator>
		<pubDate>Wed, 06 Feb 2008 23:52:58 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=323#comment-37156</guid>
		<description>Having worked with PepsiCo for years and changed directions (180 degrees) since then, I can tell you this is inevitable in the beverage industry.  Distribution eventually makes it essential to grow any more and the only game is Coke or Pepsi.
Odwalla did this year&#039;s ago with Coke (albeit for financial distress reasons) and eventually found it&#039;s footing again.  But, don&#039;t be fooled, this all about volume and profit for both Coke and Pepsi and they are some of the smartest marketers in the world.  They will convince you that they are looking to green, but not mention that only as long as it does not eat into the margins of the bubbly sugar water.</description>
		<content:encoded><![CDATA[<p>Having worked with PepsiCo for years and changed directions (180 degrees) since then, I can tell you this is inevitable in the beverage industry.  Distribution eventually makes it essential to grow any more and the only game is Coke or Pepsi.<br />
Odwalla did this year&#8217;s ago with Coke (albeit for financial distress reasons) and eventually found it&#8217;s footing again.  But, don&#8217;t be fooled, this all about volume and profit for both Coke and Pepsi and they are some of the smartest marketers in the world.  They will convince you that they are looking to green, but not mention that only as long as it does not eat into the margins of the bubbly sugar water.</p>
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		<title>By: Sam Fromartz</title>
		<link>http://www.marcgunther.com/2008/02/05/coke-swallows-honest-tea/comment-page-1/#comment-37121</link>
		<dc:creator>Sam Fromartz</dc:creator>
		<pubDate>Wed, 06 Feb 2008 15:13:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=323#comment-37121</guid>
		<description>Marc, Interesting Post. I need to talk to Seth and get more detail, but for the moment I give him the benefit of the doubt. The key though is convincing customers - and industry watchers like me - he&#039;s on the right path. Which means learning more about Coke. Still, this will be a bitter tonic for his hard core natural food customers</description>
		<content:encoded><![CDATA[<p>Marc, Interesting Post. I need to talk to Seth and get more detail, but for the moment I give him the benefit of the doubt. The key though is convincing customers &#8211; and industry watchers like me &#8211; he&#8217;s on the right path. Which means learning more about Coke. Still, this will be a bitter tonic for his hard core natural food customers</p>
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		<title>By: betsy teutsch - money changest things</title>
		<link>http://www.marcgunther.com/2008/02/05/coke-swallows-honest-tea/comment-page-1/#comment-37114</link>
		<dc:creator>betsy teutsch - money changest things</dc:creator>
		<pubDate>Wed, 06 Feb 2008 13:38:58 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=323#comment-37114</guid>
		<description>Interesting.  It sort of covers the Coke defectors who want something healthier, I suppose.  Here&#039;s a link about Coke partnering with RecycleBank here in philly. 
http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=8369&amp;SubjectID WHo&#039;d imagine you could make 41 million $ selling healthy tea?  
Maybe Camp JRF will have an Honest Tea Pavillion?!</description>
		<content:encoded><![CDATA[<p>Interesting.  It sort of covers the Coke defectors who want something healthier, I suppose.  Here&#8217;s a link about Coke partnering with RecycleBank here in philly.<br />
<a href="http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=8369&#038;SubjectID" rel="nofollow">http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=8369&#038;SubjectID</a> WHo&#8217;d imagine you could make 41 million $ selling healthy tea?<br />
Maybe Camp JRF will have an Honest Tea Pavillion?!</p>
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