2014 Mission Report

Keeping It Honest

pricing and fair trade premiums

we pay for organic and Fair
Trade Certified sugar benefit
the entire community and
allow them to invest in schools
for their children, modern farm
equipment, health care for the
workers, and even help provide a
safety net for older workers.

In May 2014, we sold our one

billionth
Honest
beverage.
The milestone provoked a few
reflections:

First, it means were no

longer just selling to people
we know, or selling cases
that we personally placed
in a store it often felt that
way 16 years ago.

Second, it is exciting to see our growth

accelerate. It took us ten years to sell our first
112 million bottles, but only six to sell the
next 888 million. Its no coincidence that the
inflection point in our growth coincides with
The Coca-Cola Companys first investment
in Honest Tea, back in March of 2008.

Our growth has fueled increased demand

for organic ingredients. In 2014 we expect to
purchase nearly 8 million pounds of organic
ingredients, which is ten times more than
we purchased in 2008.

This past Spring I also traveled to the Dominican

Republic where I came to appreciate how
organic agriculture can make a big difference
in a communitys economic viability. I visited
the town of Consuelo where I witnessed the
economic devastation that transpired when
the towns (non-organic) sugar mill closed
down.
Organic certification differentiates
some sugar from commodity sugar, which is
one way for our supplier communities to better
insulate themselves from the swings of changing
commodity market conditions.

Our growth has helped spur more suppliers

to join the organic movement. Now when
I visit tea-growing communities, they
know its not just some guy who started a
company out of his house in Bethesda, its a
representative of The Coca-Cola Company.

At the end of the day, making an organic product

can be about more than just great taste at a
competitive price it can also be about supporting
long-term investments in the environment, the
farmers and their communities. And thats our
mission.

In March of 2014 I made a journey to Paraguay to

gain a better understanding of how our organic
sugar cane is produced. Unlike the tea gardens
in India, where women generally do the picking,
the people harvesting the sugar stalks are
overwhelmingly men. This is primarily due to the
physical demands of the crop which requires a
powerful machete swing. But I saw that no matter
who is doing the actual labor, the premium

A TALE OF TWO SUGAR TOWNS

Letter from
the Tea EO

Honestly yours,

Seth Goldman
Co-founder and TeaEO

Mission Statement
Honest Tea seeks to create and promote
great-tasting, healthier, organic beverages.
We strive to grow our business with the same honesty
and integrity we use to craft our products,
with sustainability and great taste for all.

HONEST MISSION REPORT 2014

TABLE OF CONTENTS

Creae

A Message from Mission Control

At Honest Tea, we talk a lot about how
mission is at the core of our business. For
simplicitys sake, weve split that mission
into five complementary pillars that embody
our values. Our business model (aka our
mission in a bottle) is designed so that
profit and impact are tied together. It creates
a virtuous cycle: as we innovate, we grow our
salesand as sales grow, so does our impact.
But in the grand scheme of things, no matter
how much impact we have, we are still one
company with limited time and resources
(weve got a tea business to run after all!).
So we often look to partners with a proven
track record to help us deepen that impact
and advance causes beyond our scope of
expertise.
In the 12 or so months since the release of the
2013 mission report, Honest Tea has signed
new or expanded partnership agreements
with 10 non-profits:
FoodCorps

SOURCING . .

Fair Trade USA

VisionSpring

PRODUCT.

1% for the Planet

National Park Foundation
GreenBlue (How2Recycle)
Trees for the Future
Playworks
Montgomery County Corporate
Volunteer Council
We talk more about each of these
organizations throughout the report. They
differ considerably in size, location and focus
area, but the one thing they share is their
passion and dedication to making meaningful
change in the world. Its been a privilege and
an honor to be part of their work.

THE 5 PILLARS OF OUR MISSION

PROMOTING
HEALTH &
WELLNESS

REDUCING OUR
ENVIRONMENTAL
FOOTPRINT

CREATING
ECONOMIC
OPPORTUNITY

MAINTAINING
TRANSPARENCY

BUILDING
COMMUNI-TEA

. . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PACKAGING. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Connec
THE CONVERSATION .
AT THE STORE . .

6
8
10
12

. . . . . . . . . . . . . . . . . . .

14

. . . . . . . . . . . . . . . . . . . . . . . . .

16

HITTING THE STREETS . .

. . . . . . . . . . . . . . . . .

Cultivae
HEADQUARTERS .

17

. . . . . . . . . . . . . . . . . . . . . . .

20

. . . . . . . . . . . . . . . . . . . . . . . . . . .

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

EMPLOYEES . .
IMPACT . .

Jenny Burns
Director, Mission

Whole Kids Foundation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PRODUCTION .

Creae

Ingredient
Sourcing
ORGANIC

In 1999 Honest Tea introduced the first

organic ready-to-drink bottled tea and
in 2004 we converted all of our teas and
juice drinks to organic. We are dedicated
to expanding the demand and supply of
organic ingredients.

ORGANIC PURCHASES
YEAR IN REVIEW: 2013

6,536,948 lbs
32 %
CHANGE FROM
2012 TO 2013

ORGANIC VS LOCAL?
Weve heard the argument on buying organic
versus local and which is better. We believe
theyre different options with different
benefits, and that theres a role for both in
a sustainable food system. But with organic
representing less than 1% of farmland
(nationally and globally), we have some work
to do before that is a dilemma consumers
will have to address in their daily shopping
decisions.
Honest sources its top 20 ingredients from
different regions and climates around the
world. This ingredient list is calculated by
weight.

SUPPLIER PROFILE:
WHOLESOME SWEETENERS
Introducing Fair Trade Certified sugar!
Our Summer Refreshers and glass line of teas
now feature fair trade sugar supplied to us by
Wholesome Sweeteners, a Sugarland, Texasbased sweetener company. Wholesome is a
supplier that sources organic, fair trade, and
non-GMO certified sweeteners from around
the world.
In the spring of 2014 our co-founder and
TeaEO Seth Goldman visited Azucarera
Paraguaya (AZPA), Wholesomes primary

HONEST MISSION REPORT 2014

Honest sources its top 20 organic ingredients

(by weight) from regions and climates around
the world.
AGAVE SYRUP MEXICO
APPLE CONCENTRATE ARGENTINA, TURKEY
BLACKBERRY LEAVES BULGARIA
BLACK TEA (ALL TYPES) INDIA
CANE SUGAR PARAGUAY, USA
CONCORD GRAPE CONCENTRATE USA
FAIR TRADE HIBISCUS TEA EGYPT
FAIR TRADE OOLONG TEA INDIA
FAIR TRADE WHITE TEA CHINA
GREEN TEA (ALL TYPES) CHINA
HONEY BRAZIL
LEMON JUICE CONCENTRATE ARGENTINA
MANGO PUREE COLUMBIA
ORANGE JUICE CONCENTRATE MEXICO

source for fair trade sugar (see page 8).

AZPA, founded in 1910 in Tebicuary, about
120 miles from the capital city of Asuncin,
is the largest sugar producer in Paraguay.
In 2004, less than 10% of AZPAs annual
sugar production was organic. By 2014, this
amount had increased to 70%. The farmers
who grow the sugar processed by AZPA
receive a 25-30% fair trade premium on top
of the market price of organic sugar. The
farmers have invested these premiums to
improve productivity and ultimately increase
their incomes. Now thats a sweet deal.

PEACH PUREE USA

POMEGRANATE JUICE CONCENTRATE USA
RICE SYRUP PAKISTAN
STRAWBERRY JUICE CONCENTRATE USA
TULSI INDIA
WHITE GRAPE CONCENTRATE TURKEY

HONEST MISSION REPORT 2014

FAIR TRADE YEAR IN REVIEW: 2013

Honest Tea supports farmers and workers
through our purchases of Fair Trade Certified
tea, sugar, and select herbs. According to
Fair Trade USA, fair trade certification
guarantees better prices and wages, safe
working conditions, sustainable production
and investments in the communities of our
farmers and workers.
When we purchase Fair Trade Certified
ingredients, we pay the market price for
the ingredient plus an additional premium
that supports farming improvements
and community development. Our 2013
premiums equaled $155,169, which was
invested in projects such as a new tea
processing facility in China and access to
clean-burning cooking equipment and fuel
for tea workers in India. In addition to
these premiums, Honest Tea pays an annual
service fee and certification fees to Fair
Trade USA to cover administrative costs.

SUPPLIER PROFILE:
WUYUAN XITOU TEA FARMERS'
ASSOCIATION
Wuyuan County, Jianxgi, China
600 members

ABOUT
Wuyuan Xitou, located in the heart of China's
"Golden Tea Triangle", was one of the first
tea producers in China to become Fair Trade
Certified. Since its initial certification in
2005, Wuyuan Xitou has transformed into
a vibrant, democratic producer organization
focused on producing high-quality teas for
the international market.

FAIR TRADE IMPACT

Children of members benefit from the on-going
allocation of premiums to provide scholarships
for university studies. Additionally, the tea
producers voted to commit premiums to a
long-term investment in the establishment of
a new primary processing facility.

Trip to Origin:
Seth Travels to Paraguay
Most Fair Trade Certified sugar comes from smallholder farmers, many of whom
have invested their fair trade premiums in new equipment to ease transport
and improve quality. Organic farming practices include green cutting to add
nutrients to the soil and breeding tiny wasps that control destructive cane worms.
To learn more about Seths trip and Fair Trade Certified sugar, check out this
video of the trip:
http://www.youtube.com/HonestTea

HONEST MISSION REPORT 2014

ASSAM EYE CARE INITIATIVE

We wanted to find a way to deepen our
connection and impact within the fair trade
communities from which we source our tea.
In partnership with Fair Trade USA, we set
aside a dedicated fund to address needs that
a community had identified but had not yet
been able to cover with their annual fair trade
premiums. Our first pilot program, which
supported our supplier the Tonganagaon Tea
Estate in Assam, addressed the communitys
needs for eye care.
Assam is a state in Northeast India known for
its black tea and lush hillsides, although it is
also one of the most impoverished tea regions
in the world. As with many tea growing
regions, specialized healthcare is not always
readily accessible. Access to optometrists
is particularly important in these areas
because tea pluckers rely heavily on eyesight
to pick quality leaves. Since poor eyesight
can negatively affect the long-term earning
potential and quality of life of tea pluckers,
we asked VisionSpring to develop a program
to bring on-site eye care to the community.

In February 2014, VisionSpring enlisted

a local non-profit organization, ERC Eye
Care, to travel to Tonganagaon. Knowing
the language and the cultural customs of the
region aided ERC Eye Care in screening 5,127
tea pluckers and community members. 2,400
of those screened were given a prescription
for corrective lenses and a free pair of
glasses. In March a follow-up survey revealed
encouraging results. We hope to extend this
effort to other tea gardens in the region (or
nearby) in the coming year.

Another new partner offered the opportunity

to evaluate the effectiveness of the program.
With a grant from the U.S. Agency for
International Development (USAID), Labor
Link by Good World Solutions delivered
mobile phone surveys to the eye care
recipients shortly after the screenings.

SURVEY QUESTIONS

RESULTS

Are your VisionSpring eyeglasses the first

pair of eyeglasses you have ever owned?

Yes
No

71%
29%

Thinking about your new eyeglasses,

how useful would you say they are in
your daily life?

Very useful
Somewhat useful
Not useful

59%
36%
5%

Do you believe your new glasses have helped

you perform better at work or school?

Yes
No
Do not attend work or school

72%
25%
3%

Are you a man or a woman?

Woman
Man

53%
47%

Which is the main reason you did not

purchase eyeglasses earlier?

Had not had eye check-up

49%
No vision problems before
39%
Could not afford glasses
5%
No optical shop nearby
5%
Stigma associated with wearing glasses 2%
How long have you worked at the
tea estate?

6+ years
Less than 1 year
1-3 years
4-6 years
Unanswered

34%
23%
17%
17%
9%

* LABORLINK SURVEY, MARCH 2014, ADMINISTERED BY

MOBILE PHONE
* N=148; TOTAL NUMBER OF VALID RESPONSES VARIES BY
QUESTION

10

HONEST MISSION REPORT 2014

Production
While our ingredients come from
around the world, the finished products
are bottled at plants across the U.S.
In 2011 we performed a life cycle analysis
of our top two selling varieties to better
understand the environmental impact of the
manufacturing and distribution of two of
our top-selling varieties. If youre interested
in this information, please see our 2011
Mission Report.
More recently, many of our products have
been integrated into the sourcing, bottling,
and distribution systems of The Coca-Cola
Company. This means that much of our
production-related impact data is rolled up
into the overall reporting of The Coca-Cola
Company which can be viewed at: http://
www.coca-colacompany.com/sustainability/

Product
This year has seen several exciting new
additions to our family of beverages.

SUMMER REFRESHERS
In May 2014 Honest Tea released a new
line of Summer Refreshers available
exclusively at Whole Foods Market. These
limited-edition beverages are organic
and sweetened with Fair Trade Certified
sugara first for Honest. The purchase of
fair trade sugar for these drinks benefits

sugar farmers in Paraguay. One challenge

in developing this line was coming up with
a sweetness formulation that would appeal
to a wide audience. Because of its inherent
tartness, lemonade is a tricky drink to make
just a tad sweet. We learned this firsthand
with our Zero Calorie Lemonade, which
was discontinued in 2013. We ended up
with a formulation of 70 calories per 8 fluid
oz serving for all 5 varieties which is also
sweeter than any drink we have previously
offered under the Honest brand.

HONEST MISSION REPORT 2014

INTRODUCING
RADIANT RASPBERRY TEA

11

RASPBERRY TEA
Our Raspberry Tea in 16.9 fluid oz PET
bottles is now available nationwide! After a
successful test pilot in the New York region,
we listened to feedback from our customers
and tinkered with the formula and the label
design to get it just right. To see a video of
where we source the black tea for this recipe,
visit: http://www.youtube.com/HonestTea

We loved raspberry with tea so much, we

made two! Our new Radiant Raspberry Tea
in the 16 fluid oz glass bottle is made with
organic, fair trade tea and sugar. And to give
it a little something special, weve brewed it
with organic blackberry leaves for a subtle
earthiness that complements the black tea
and helps balance the bold fruit.

it's so hard to say goodbye...

A few of the tea varieties that we retired
this year were long-time contributors to our
mission. Were making efforts to preserve
their impact where possible.
Through a partnership with Whole
Foods Market, proceeds from Raspberry
Fields were directed toward the Whole
Planet Foundation. Our new Radiant
Raspberry Tea is made with Fair Trade
Certified tea and sugar, which supports
the sourcing communities behind both
ingredients directly.

you
s
s
i
m
l
We'l
xoxo

BUT WITH THE INTRODUCTION OF NEW PRODUCTS COMES THE

RETIREMENT OF OTHERS. WE LOVED THEM WHILE THEY WERE AROUND!

We purchased Renewable Energy

Certificates annually to offset the power
used to produce Jasmine Green Energy.
Now that The Coca-Cola Company either
owns or audits our production plants,
we are working to align our operations
with the company's goal to reduce CO2
emissions embedded in every drink

across its entire production chain by

25% by the year 2020.
Despite the phase out of Community
Green (which featured the City Year logo
& mission on the label), we continue to
support City Year through its annual
Martin Luther King, Jr. Day of Service
event.

12

HONEST MISSION REPORT 2014

Packaging
Our tea-m has been working hard to
update our label graphics to reinforce and
more clearly communicate our Mission.

FAIR TRADE LABELING UPDATE

Fair Trade USA recently revised its labeling
policy, designed to provide more impact to
farmers & workers while being clearer to
consumers. One of the key changes is that
products containing between 20% and 100%
Fair Trade Certified ingredients (as a portion
of total ingredients, by weight) are required to
list that percentage on the label in addition to
using the Fair Trade Certified logo. Products
containing less than 20% fair trade ingredients
cannot use the Fair Trade Certified logo at all
(but may state that the product is made with
Fair Trade Certified ingredients).
The first products to adopt this new labeling
system include our Summer Refreshers and
our Heritage line of teas in 16 fluid oz glass
bottles. The other products will follow in the
coming year.
We have mixed feelings about this policy, as
percentages by weight are easier to understand
on solid products like granola bars than they are
on liquid products like brewed tea or lemonade,
and were concerned it may cause more
confusion about the products contents than
it does clarify. This is especially challenging
with tea leaves, which represent the primary
flavor in our drinks, but are such a lightweight
ingredient. Honest products will continue
to identify whether an ingredient is organic
and/or fair trade on the back of the label. For
every ingredient listed as fair trade, you can
feel confident that 100% of the volume of that
particular ingredient purchased is fair trade.

1% FOR THE PLANET

1% for the Planet connects businesses,
consumers, and nonprofits to drive positive
environmental change. In the last 10 years,
1,200 businesses worldwide have donated
more than $100 million to sustainabilityoriented nonprofits. Honest Tea has
committed to donate the equivalent of at
least one percent of sales from our tea line
in 16 fluid oz glass bottles to organizations
within the 1% For the Planet network.
In 2013, nonprofit organizations benefiting
from Honest Teas contribution include:
Fair Trade USA, National Park Foundation,
FoodCorps, Bethesda Green, Trees For The

Future, National Wildlife Federation, Rodale

Institute, Social Venture Network, William
James Foundation, and Green America.

HOW2RECYCLE
We think recycling should be simple. Thats
why we voluntarily hopped on board with
How2Recycle, a program developed by nonprofit GreenBlue in an effort to clarify the
recycling process. Since its founding in 2008,
the project has worked with businesses to
adopt a set of simple, standardized consumer
recycling instructions (for more details see
http://www.how2recycle.info/). Honest Tea
is excited to announce that in the coming
year, the majority of our labels will bear the
How2Recycle guidelines.

HONEST MISSION REPORT 2014

The labels on our glass bottles were

updated to bring the origins and
inspiration behind each tea variety to life.

Terracycle

13

In 2007, we were a founding member of the

TerraCycle Drink Pouch Brigade established
to help keep pouches out of landfills.
COLLECTION
LOCATIONS
CUMULATIVE
SINCE 2007

75,944
5,000
212,365,094
LOCATIONS
ESTABLISHED
IN 2013

DRINK POUCHES COLLECTED

(CUMULATIVE SINCE 2007)

2,336,016 lbs
*

OF DRINK POUCHES DIVERTED FROM

LANDFILLS (CUMULATIVE SINCE 2007)

$4.1 Million
*

OF CHARITABLE DONATIONS GENERATED

BY THE DRINK POUCH BRIGADE
(CUMULATIVE SINCE 2007)
*AS OF JUNE 30, 2014

FOR MORE INFORMATION VISIT:

WWW.TERRACYCLE.COM/EN-US/

Connec

The
Conversation

Our goal is to have open and honest

communication with as many people
who contact us as possible whether its
with a question, comment, or complaint.

OUR RELATIONSHIP WITH

THE COCA-COLA COMPANY:
A THEORY OF CHANGE
At Honest Tea we strive to make organic
products accessible to all consumers. Yet,
given that organics today represent 4% of
total US food sales (and 1% of US farmland)*,
we know theres a lot of work that needs to be
done to make that happen.
Looking at our relationship with The CocaCola Company, we have seen the positive
impact it has made on the growth of organics
in the U.S. This partnership has allowed us
to increase our sales six-times over since
the initial investment in 2008, increasing
the amount of organic ingredients weve
purchased to 6.5 million pounds in 2013 (from
800,000 pounds in 2007). Additionally, we
have been able to expand our availability to
over 100,000 outlets and in doing so have
increased organic awareness and knowledge
among consumers. There are inevitable
challenges that come along with being a part
of a larger family of brands, but overall our
partnership with Coca-Cola has been integral
to our efforts in achieving our mission.

HONEST FEEDBACK
Ben L
June 3

Honest Tea

You should consider a gallon size for grocery stores

Like Comment Share

Honest Tea Hi Ben, we thought youd never

ask. We have select 59 FL OZ varieties of
our teas available at Target and Whole Foods
near you--perfect for a summer picnic or
storing in the fridge at home!
June 4 at 6:10am

Diana L
May 21

Honest Tea

I won't be buying your products, or any of your

brands, until you stop fighting GMO labeling.
Like Comment Share

Honest Tea Hi Diana, happy to clarify,

Honest Tea is not fighting against transparent
labeling. If you pick up any of our beverages,
you'll find the "No GMOs" logo prominently
displayed. Simply stated: if there's an
ingredient sourced through biotechnology,
we don't use it. Cheers!
May 22 at 6:13am

*Note: In addition to our No GMOs label on each bottle,

our teas are all certified organic. USDA regulations stipulate
that cropsincluding teaare not grown with genetically
modified organisms (GMOs), synthetic fertilizers, prohibited
pesticides, irradiation or sewage sludge.

From: Zach
To: sethandbarry@honesttea.com
Subject: Love what you're doing...
I buy a bottle of Peach White Tea or Unsweetened
just about every day on my way to work. I love
what you guys are doing - keeping tea organic, fair
trade, and without GMOs. I honestly just wanted to
write an email to thank you. I do have one question.
Is your product available by the case or 6 pack?
From: Honest Tea
To: Zach
Subject: Love what you're doing...
While most retailers sell our products in individual
bottles, cases sizes can always be special-ordered,
and some stores (such as Whole Foods Markets)
will offer case discounts as well.

*ORGANIC FOODS & BEVERAGES MARKET ANALYSIS,

GRAND VIEW RESEARCH, 2014; GROWTH PATTERNS, USDA, 2013

81%

INQUIRIES
14,390 TOTAL

INGREDIENTS - 50%
AVAILABILITY - 3.8%
PROMOTIONS - 1.4%

4%

COMPLIMENTS
723 TOTAL

HONEY GREEN TEA - 12%

HALF TEA & HALF LEMONADE - 6%
POMEGRANATE BLUE - 6%

15%

COMPLAINTS
2,674 TOTAL

(NOT INCLUDING GMO LETTERS)

INGREDIENTS - 12%
PRODUCT QUALITY - 13%
PACKAGE QUALITY - 11%

NOTE: We received many form letters regarding

current campaigns related to GMO labeling laws;
without including those 4,425 complaints, the
number of total complaints was 2,674.

HONEST MISSION REPORT 2014

MY WELLNESS PLEDGE
Through social media, Honest Tea supported
individuals in achieving their New Years
Resolutions. In the month of February, we
encouraged people to share their resolutions
online using #MyWellnessPledge and enter
for a chance to win a 30-day supply of
Honest Tea. Over 1,000 people posted their
resolutions via Twitter. Hopefully this helped
them to keep it top of mind and stick to it.

15

USING SOCIAL MEDIA TO SPREAD

OUR MESSAGE AND OUR MISSION
Our social media presence has continued
to grow. As of August 2014 we reached
over 452,000 Facebook fans and 29,400
Twitter followers, up from 320,000 and
19,000 in May 2013 (respectively).

452,000 29,400
FANS

Honest Compliment
A little appreciation can go a long way. Inspired by the power of expressing kindness, we launched
a movement to share Honest Compliments. Since June 2013 we have invited participants
nationwide to visit one of our Honest Compliment Booths and receive a genuine, one-of-akind compliment. We have also taken our enthusiasm for positivity to the cybersphere, hosting
a Twitter celebration of National Compliment Day on January 24th. Over 3,600 compliments
were exchanged, as recipients spread the love to friends using #honestcompliment.

FOLLOWERS

GIVING TUESDAY TWITTER PARTY

Each year on the Tuesday after Thanksgiving,
92nd St Y encourages people to celebrate
volunteering and giving back on Giving
Tuesday. On December 2nd (the day before
Giving Tuesday) Honest Tea, FoodCorps,
Applegate, Happy Family, Stonyfield, and
Earthbound Farms, joined by the United
Nations Foundation, held a Twitter party
and invited anyone passionate about
food. During the conversation, the hosts
and expert panelists shared meal ideas,
discussed locally-grown produce, and
encouraged attendees to donate to our
partner FoodCorps on Giving Tuesday.

AN HOUR IN TWITTER
1,636
9.5

TWEETS

MILLION
IMPRESSIONS

16

HONEST MISSION REPORT 2014

At the Store

PRODUCE BUNDLES
Our produce bundles were such a success
last year that we did it again! This year,
over 33,000 consumers redeemed coupons
to receive a discount when purchasing an
Honest Tea product with organic produce.

Through the creativity and dedication

of our Marketing and Sales teams,
consumers are able to interact with our
Mission in the stores where they shop for
our products.

EARTH MONTH &

NATIONAL PARK FOUNDATION
To celebrate Earth Month and to encourage
people to get out and enjoy nature, we teamed
up with the National Park Foundation to
promote our mutual appreciation for the
environment on social media. We encouraged
people to take a selfie outside and share it
using #ParkYourThirst. In doing so they were
automatically entered for a chance to win
an Annual Park Pass and a 30 day supply of
Honest Tea. We also jointly hosted a Twitter
Party, inviting participants to share personal
stories illustrating what national park meant
to them. To culminate this partnership,
Honest Tea donated $25,000 to the National
Park Foundation to support their mission of
safeguarding Americas heritage and inspiring
future generations of national park enthusiasts.

UPCYCLED COOLERS & YOGA MATS

In partnership with Natural Grocers by
Vitamin Cottage, Honest Tea gave away 90
yoga mats and 80 bike cooler bags. The yoga
mats were made from sustainably harvested
rubber and the bike pannier coolers were
fashioned out of upcycled banners &
billboards and recycled plastic.

BIKE PROGRAM
Through various in-store competitions
across the country, including during Earth
Month, Honest Tea gave away over 770 bikes
this year.

INDOSOLE
We partnered with Indosole for the second
year in a row to give away over 400 pairs
of Honest Tea branded shoes on college
campuses and in hospitals. Indosoles are
made by hand in Bali from repurposed
materials, including motorbike tires. To
date, Indosole has kept over 216,000 tires
out of Indonesian landfills.

HONEST MISSION REPORT 2014

ROCK THE LUNCHBOX

Honest Tea teamed up with several
partners to help parents and kids Rock the
Lunchbox! Honest Tea and several brand
partners created a website for the program
with encouragement and tips for packing
fun, wholesome on-the-go lunches. As in
previous years, we gave away 30 reusable
lunch sacks containing lunch-appropriate
items from the brand partners.

Hitting the
Streets
Through
experiential,
educational,
and fun interactions with people in the
communities where we sell Honest Tea,
we are able to share our products and
communicate our Mission.

THE GREAT RECYCLE GROWS

By selling millions of single serve bottles
of Honest Tea, we generate a large amount
of packaging material. We are also aware
that national recycling rates hover around
30%, so much of what we produce will not
find its way to recycling bins. In 2011 we
launched the interactive Great Recycle
campaign to improve national recycling
participation. Our field tea-m has organized
more than a hundred events with giant blue
bins in cities across the US, and at festivals,
retailers and campuses to educate people
about the importance and ease of recycling.
Participants are incentivized to redeem
their recyclable bottles in exchange for
great rewards like iPads and bikes. Between

the great recycle HIGHLIGHTS:

2014
HANG OUT FESTIVAL

2014
EARTH DAY NYC

CONTAINERS
COLLECTED

TOTAL APRIL 2012 OCT 2014

113,400 18,157 537,000+

17

April 2013 and April 2014 we collected over

210,000 containers, a 200% increase from
the same period a year earlier. This year we
also introduced two mini-bins in each of our
three regions to be able to hold more events
than ever before.

THE GREAT RECYCLE & TREES FOR

THE FUTURE
Trees for the Future, a Maryland-based
nonprofit, shares our passion for strong
ecosystems. They are dedicated to planting
trees with rural communities in the
developing world, enabling them to restore
their environment, grow more food, and
build a sustainable future (trees.org). We
are working with Trees for the Future to
build on the positive environmental impact
of our Great Recycle events. Now, when
people bring their bottles and cans to recycle
in our big blue bins, they have the option to
redeem their recycling points for an Honest
Tea donation to Trees for the Future at a rate
equivalent to 1 point=$1=10 trees .

18

HONEST MISSION REPORT 2014

SWEETGREEN IN SCHOOLS

NO MORE HYBRIDS

SAMPLING CUPS

Sweetgreen in Schools works in D.C., MD,

VA, and NYC to educate students about
wellness and healthy eating. For twenty
fourth graders, the curriculum culminated
in May at the Sweetlife Festival, where the
Honest Tea-m was on hand to teach a lesson
about edible plants. The students got to
touch and taste real tea leaves and sugarcane,
learning how many of the ingredients used
in products they see in stores everyday are
made from plants. For more information on
sweetgreen, visit http://sweetgreen.com/.

This year we switched our Honest fleet to

14 cargo vans. While this is a sad transition
from our formerly hybrid-powered fleet, it
was a necessary move for the business. Our
old fleet and the current hybrid options did
not have large enough cargo space, and would
have required almost double the trips to move
product and materials from point A to point B.
Well continue to explore alternative vehicle
options that can meet our teams needs.

Last year we were excited to switch our tasting

cups from a paper to a compostable plantbased plastic resin. The clear plastic really let
the color and character of our beverages shine
through, especially for people unfamiliar with
them. Unfortunately, the new cups didnt stand
up to the grueling test of field marketing and
melted in the heat! We made the decision to
switch back to a sturdier paper cup. The cups
are made from Forest Stewardship Council
Certified paper that is bleached without
using elemental chlorine, feature a US-grown
plant-based lining and can be composted in a
commercial facility (appropriate facilites may
not exist in all areas).

1,518

Type of sampling Events

27%

424 ACTIVE EVENTS

24%

360 HEALTH EVENTS

21%

307 FOOD EVENTS

10%

153 MUSIC EVENTS

9%

139 ECO EVENTS

TOTAL EVENTS

9%

135 COLLEGE EVENTS

HONEST MISSION REPORT 2014

19

PRODUCT/IN-KIND DONATIONS

national honesty index

The National Honesty Index is our lighthearted social experiment to gauge the state of Americas
honesty. For 4 years running we have traveled around the country to see how people respond to
pop-up kiosks offering a bottle of tea for one dollar on the honor system. 2013 was our biggest
experiment yet. We visited all 50 states and Washington D.C. We were happy to discover that
overall, 92% of people in the U.S. still think honesty is the best policy. Those folks helped raise
$13,600 from the suggested $1 per bottle, which was all donated to FoodCorps.

3,397

TOTAL CASES DONATED

In 2013 Honest Tea donated over 3,300 cases

of Honest beverages. Some of the donation
recipients included:

$13,600
With this donation, FoodCorps Service Members were able to....

TEACH handson nutrition

EDUCATION
ACTIVITIES
TO NEARLY

1,000

KIDS FROM
LIMITED-RESOURCE
COMMUNITIES

BUILD OR
REVITALIZE

ADMINISTER
CAFETERIA
TASTE-TESTS

WITH fresh,
garden PRODUCE

HELP SUPPORT
CHANGE IN SCHOOL
CAFETERIAS BY
INTRODUCING

2
40

ENGAGE

new, local

INGREDIENTS
TO MENUS

volunteers,

SPREADING THE WORD

Throughout 2013 and 2014, Seth continued
to spread the Honest Tea story and Mission
across the country. Some of his speaking
engagements included:
American Wind Energy Association
Annual Conference
Social Enterprise Alliance
Annual Conference
Maryland University of
Integrative Health
The 2014 Beverage Forum
Crop Life America National
Policy Conference
Net Impact Annual Conference

school
gardens

TEDx Mid-Atlantic
WHO ADVOCATED TO BRING HEALTHIER
SCHOOL FOOD TO THEIR COMMUNITIES

Business for Social Responsibility

Conference

Cultivae

Headquarters

Our Mission starts from within the walls

of our Bethesda headquarters.

CERTIFIED GREEN BUSINESS

For the last few years, Honest Tea has
been a Montgomery County Certified
Green Business. This voluntary initiative of
Montgomery County Maryland emphasizes
the sustainability of company office space
and of day-to-day operations and policies.
Requirements include establishing waste
reduction and recycling policies, providing
recycling containers in the office, and
establishing green sourcing policies, among
others. For more information, visit http://
mcgreenbiz.org/.

PLANT WALL

Our headquarters is green in more ways

than one- we have lots of plants. Our newest
addition is a Florafelt vertical garden, which
is made from recycled PET bottles. Not
only is this technology upcycling plastic
drink bottles, but the plants it holds help to
improve air quality in the office and make
Honest Tea an even happier and healthier
place to work.

Awards
We think a little appreciation can go a long
way. That is why we created our Honest to
the Core and Fire in the Belly awards over
7 years ago. Voted on by members of their
department, the winners are recognized at
our annual company meeting in November.

HONEST TO THE CORE

UNITED STATES
HEALTHFUL FOOD COUNCIL
Through realigning the food industrys
incentives with consumers health interests,
the non-profit United States Healthful Food
Council aims to fight diet-related disease.
The organization presents annual REAL
Food Innovator Awards to leaders in the
field contributing to the production and
consumption of healthful and sustainable
food. In 2014, the inaugural year of this
award, Honest Teas TeaEO Seth Goldman
was recognized as an innovator in this field,
specifically for beverages.

TREE-FREE SUGAR CANE PAPER

The Bethesda office switched to TreeFrog
printer and copy paper. This paper is 100%
tree-free, so is not made from wood or
recycled paper, but from a sugarcane fiber.
In terms of improving our sustainability
beyond reducing deforestation, were also
limiting the waste in the sugar industry by
productively using more of the sugarcane
plant (the source of one of our most
important ingredients). And its recyclable.
Given that this paper costs 12% more than
our current paper, we have set an office goal
of reducing our paper consumption by 12%.

The employee receiving this award embodies

the core values that Honest Tea is built
upon: honesty, integrity, a commitment to
health and wellness, social responsibility
and a community partner both near and far.
4 employees across each of our geographic
regions are honored each year.

FIRE IN THE BELLY

This person has exhibited the following
qualities: determination, passion, drive,
ambition, and a true team member. 6
employees across each of our departments
are honored each year.

HONEST MISSION REPORT 2014

Employees

21

Snack Packs: For the past several years, Honest Tea employees
have received a bag chock full of tasty goodies three times a
year. Beginning in June, we introduced snack packs 2.0!
Employees now receive gift cards to purchase their own healthy
snacks on the go.

We do what we can to support the wellbeing of our employees and encourage

them to live the Mission inside and
outside of the office.

YOGA IN THE OFFICE

Occasionally the Honest Tea headquarters
becomes a Zen yoga studio. Employees are
invited to get their asana on at a business
casual class. It can be helpful to limber up in
the middle of the workday every now and then!

EMPLOYEE WELLNESS
Wellness Wednesdays: Every Wednesday,
employees are sent a weekly missive from
our very own Wellness Coach with advice
on health, fitness and mental wellbeing.

happy anniversary

31

EMPLOYEES
OVER 5 YEARS
TENTURE

A vegetarian with an enthusiasm for physical

activity, family time and just a tad sweet tea,
our TeaEO Seth makes health a lifestyle.
In the summer of 2013 we tried to see

SINCE

1998

EMPLOYEES

what would happen if the rest of the tea-m

followed suit. Over 40 employees recorded
every Goldman-esque activity they engaged
in and were awarded points accordingly.

1999 2001 2002 2004 2005 2006 2007 2008 2009

*NUMBERS BASED ON WORK-ANNIVERSARIES BASED ON JULY 1, 2014

13

22

HONEST MISSION REPORT 2014

volunteering

Giving back to the communi-tea where

we live and work is an important part
of our culture at Honest Tea.

ANNUAL HONEST SERVICE DAY

Every year in September the entire company
volunteers on the same day, nationwide.
This year, employees focused on the theme
of access to healthy food, volunteering at

local farms and in food pantries and soup

kitchens. In all, our volunteers supported 28
organizations across the country.

MLK DAY OF SERVICE

Honest Tea often participates in City Years
Martin Luther King Jr. Service Day. Last
January, several Bethesda-based employees
volunteered at Coolidge High School in
D.C. by helping to remove old furniture and
storage items to make way for the new.

EARTH MONTH SERVICE DAY

As part of the Montgomery County Corporate
Volunteer Council Circle of Leadership, we
have worked throughout 2013 to engage
local businesses in service. We also hosted
an event of our own in honor of Earth Month.
In conjunction with Montgomery Parks, the
MC-CVC and Bethesda Green, we organized
a morning clearing invasive plants from 16
acres of nearby park land.

PLAYWORKS
Playworks believes in the power of play
to bring out the best in every kid. Welltrained, enthusiastic volunteers partner
with low-income schools in urban areas
to foster independence & leadership and
teach conflict resolution on the playground.
This year we supported Playworks D.C. by
fielding a champion Rock Paper Scissors
team at a benefit tournament in March and
competing in a kickball round-robin charity
event against other local companies in June.

HONEST MISSION REPORT 2014

By the numbers:

refreshing facts

Since Honest Tea was launched out of Seths

kitchen in 1998, we put into market

105

VARIETIES OF BEVERAGES

OF THOSE VARIETIES,

101

CERTIFIED
ORGANIC

Accelerating Impact

Honest Tea crossed a major milestone in June of 2014: we sold our billionth beverage! Heres a
look at our current impact, and how weve grown since just before The Coca-Cola Company first
invested in Honest Tea in 2008.

2007

(CONSISTS OF BOTTLED TEAS, TEA BAGS, JUICE DRINKS,

KOMBUCHA, A CACAO-BASED DRINK, SODAS AND MOST
RECENTLY, LEMONADES AND A LIMEADE).

58

FAIR TRADE
CERTIFIED

15

ZERO
CALORIE*

23

SERVINGS SOLD

34,033,275

2013

226,326,504

ANNUAL POUNDS OF ORGANIC INGREDIENTS PURCHASED

790,000

6,536,948

ANNUAL FAIR TRADE PREMIUMS GENERATED

*ZERO-CALORIE EITHER UNSWEETENED OR SWEETENED

WITH ORGANIC STEVIA

VARIETIES FROM 1998 ARE STILL

IN MARKET

$30,000

$155,169

ANNUAL POUNDS OF FAIR TRADE INGREDIENTS PURCHASED

72,000

550,853
NOTE: NUMBERS ARE FOR FULL CALENDAR YEAR

HONEST TEA, INC.

4827 BETHESDA AVENUE BETHESDA, MD 20814
800.865.4736 WWW.HONESTTEA.COM
@HONESTTEA

FACEBOOK.COM/HONESTTEA