The Odd Couple

“Those who say it can’t be done, shouldn’t interrupt the people doing it.” Chinese Proverb

Last month I heard Seth Goldman, founder and president of TeaEO, speak at the FUSE Branding and Design Conference. After hearing that Coca Cola purchased a 40% stake in Honest Tea, I was wondering how Goldman was going to explain how they shielded the product and brand from being compromised by the global giant. After all, Goldman said his intent was to launch a beverage that would change the industry. Partnering with Coke seemed to contradict that mission. How could you change an industry if you become a brand extension of the old guard?

It will be interesting to see where the Coke relationship takes the Honest beverages. The most important brand tool that Goldman and Honest Tea used has been story-telling. It’s vital to any successful brand. What is the story behind the product? Why are you making it and how are you authentic? The Honest Tea story isn’t about parading a celebrity spokesperson in front of the camera or bragging about the product. The story they focused on revolved more around a conversation with their audience.

In partnering with Coke, Goldman said he didn’t want to be naïve about the possibilities of losing control of his successful brand. However, the distribution network could not be overlooked. Time will tell if “bigger, but still the same” holds true. As Goldman said, Coke learned a valuable lesson in the debacle that followed the introduction of “New Coke”—don’t fix what isn’t broken.

Goldman’s passion for his product was glaringly obvious and I’m certain his desire for continued growth of the Honest brand—whether through Coke or not—is extremely genuine. However, the hidden story behind this tale is Coke’s mission. Maybe we’re really seeing the best of both worlds in this partnership. Perhaps Coke is making a strategic brand shift from the sugar-filled beverages and looking to add more natural and healthier products to their family.

You have to wonder how the relationship between a company that truly wants to benefit the environment and produce a healthy product and a conglomerate that has historically had—and rightfully so if you ask its stockholders—tunnel vision on units sold and marketshare.

As the Chinese proverb at the top of the post iterates, maybe this is a new, more positive approach by the big companies.