Tea Sippers

While one would not immediately think of Coca-Cola when thinking of tea, looks like the time has come in a big way. Not only has Coca-Cola bought a big chunk of Honest Tea, it is affecting the sale of Arizona Tea.

Coca-Cola Enterprises who distributes 80% of Coca-Cola’s North American bottle and can inventory has announced that they are dropping most of the distribution of Arizona Tea starting in May except in areas that will not carry Glaceau enriched waters. Coca-Cola bought Glaceau last year and owns 35% of Coca-Cola Enterprises stock, so they own a good chunk of their major distributor as well. Coca-Cola didn’t particularly like CCE delivering a product that competed with their own Nestea and Gold Peak tea products.

What is pushing all this buying up of small non carbonated drink companies is a surge in sales of non carbonated drinks and a slump in carbonated drink sales. For instance, Glaceau has increased their sales volume by 100% or better for the last four years. Glaceau makes Vitaminwater and Smartwater. Smartwater hasn’t made it to where I live but I sure have seen an increase in the number of bottles of Vitaminwater on store shelves.

Although I will not mourn the passing of Arizona Teas from most areas as most seemed to be made with high fructose corn syrup (only found one that didn’t have it at only one store during a trip this last weekend), it is a bit scary about all the small tea companies being bought up by the big corporations or others. Have another post later about another such buy out of a small tea company.

Source: http://www.ajc.com/business/content/business/coke/stories/2008/04/01/arizona_0402.html