PRICE OF HONESTY

CSR

HISTORY

MISSION STATEMENT

WHY STAKE SALE TO COCA-COLA? Constant struggle in reaching out to New Markets Insignificant presence in Supermarkets and

convenience stores No presence in overseas markets Less than 20% of population were reached. Focus on core business and not to spend time on

establishing and setting up distribution infrastructure National presence To create impact in the society by taking the brand

forward more aggressively To democratize organics Promote sustainable farming / fair trade practices to

help organic farmers

STAKE SALE OUTCOME – HONEST TEA’S EXPECTATION

No intervention in management / business operations

No Change in its mission Create larger reach using Coke’s widely

available distribution network Provide socially responsible products to more

consumers To change the landscape of agriculture in tea

fields (2.5 mt versus 25mt)

CUSTOMER REACTIONS

Signed a deal with devil Honesty is sold to a company sells and

promotes unhealthy drinks / known for environmental and labor abuses

CUSTOMER REACTIONS

Why no unique solution to distribution when there is for other areas such as bottling plants, ingredients, etc.

Concern on ability to remain on their sustainable practices

Concern on all the green initiatives

OTHER SIMILAR TAKEOVERS

Ben & Jerrys (Unilever) Tom’s of Maine (Colgate)

Burt’s Bees (Clorox)

Thank You