Honest tea Essay

6615 Words Oct 3rd, 2013 27 Pages
ACADEMIC ABSTRACT
The Honest Tea case is about an entrepreneur, Seth Goldman, who built a successful social venture in the alternative beverage industry. After building Honest Tea to become an industry leader, Seth faced with the decision of whether to merge with Coca-Cola and how to successfully manage the post-merger transition. Information about the alternative beverage industry and
Seth’s use of social media is presented to help determine how Honest Tea can continue to grow after merging with Coke yet maintain the core principles that their stakeholders value.

USASBE_2011_Proceedings-Page0108

EXECUTIVE SUMMARY
Seth Goldman believed that building a successful brand meant that the company would need to demonstrate that a
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But when we buy ten times that amount, we help create a market that multiplies far beyond our own purchases. When we sell 32 million bottles and drink pouches with less than half the calories of mainstream alternatives, as we did in 2007, we help displace 2,400,000,000 empty calories.
That’s important, but when we sell ten times that number, we help lead a national shift toward healthier diets.”
Despite its benefits, a merger with Coke may have its share of costs, some unique to social ventures. Once Honest Tea merges with Coca-Cola, will Honest Tea be able to continue fulfilling its social mission? Most importantly, how can Seth persuade stakeholders, both internal and external, to support Honest Tea’s merger with Coke? Most of Honest Tea’s stakeholders including employees, consumers and independent distributors are socially focused and steadfast in their support of socially responsible companies. How might they react to the news that Honest Tea has merged with a national distributor and especially one with so much negative connotation associated with it? Will they be as committed to the Honest Tea brand?
Goldman has built a solid following to his personal blog site. However, even if Seth is transparent with customers through social media about the challenges Honest Tea faces will it be
enough

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