ATLANTA -- Coca-Cola may be close to snagging interest in a boutique tea company.
Trade journal Beverage Digest, citing sources familiar with the matter, said Coke is close to "making an investment" in Honest Beverages, a Bethesda, Md.-based maker of organic teas and juices under the brand Honest Teas, reports the Atlanta Journal-Constitution.
"It is not known at this time how big a stake Coke is taking or if there will be any change in Honest's distribution," John Sicher, Beverage Digest's publisher, wrote Monday in [image-nocss] an alert on the possible deal.
Coke spokesman Dana Bolden declined to comment on the report to the Journal-Constitution on Wednesday. Honest Beverages representatives could not be reached for comment.
If the Honest move proves true, it could help Coke beef up its noncarbonated mix to better compete with archrival Pepsi. While Coke sells Nestea and Gold Peak, its share of the market lags behind Pepsi and other competitors, including Cadbury and Arizona.
The beverage industry in general has been looking for new drinks to entice consumers who are more and more turning away from carbonated sodas such as Coke Classic and Diet Coke.
Last year, Coke bought Fuze and glaceau, the maker of vitaminwater, to try to strengthen its portfolio in the growing energy drink and water categories. The company has told analysts it plans to look at other acquisitions to further broaden its lineup.
Honest Tea, founded in 1998, had sales of $23 million in 2007 and has 52 employees. The brand's teas and juiceswith names such as Heavenly Honey Green, Pomegranate Blue and Mango Acai Whiteare sold at Kroger, Target and Whole Foods.
The privately held company had total volume of just under 2 million 192-ounce cases in 2006.
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