“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,” Sabrina Tandon, group director, RTD Tea, Coca-Cola North America Operating Unit, stated. “We believe Gold Peak and Peace Tea are best positioned to meet consumer preferences for high-quality brewed teas with different levels of sweetness and flavor.”
A supply chain crunch that arose in the pandemic has impacted the company’s ability to meet demand for brands like Gold Peak, Tandon added.
“Ongoing supply chain challenges mean we are having to prioritize production and distribution of certain product SKUs, and that we’ve been unable to meet consumer demand for Gold Peak,” Tandon added. “This, among other factors, helped drive this very difficult decision.”
Goldman, who founded the brand in 1998, and stayed with Coca-Cola following its acquisition through 2019, in a Twitter thread described the shutdown of Honest Tea as a “a gut punch to all the sweat, tears, and incredible passion that went into building our beloved brand,” including Fair Trade certified farmers and suppliers who provided product ingredients.