(NEXSTAR) – Coca-Cola is reading the tea leaves, and they aren’t too optimistic about Honest Tea.
The beverage, which was founded in 1998 and acquired by the Coca-Cola Company in 2011, will be phased out of Coca-Cola’s portfolio by the end of the year, the company confirmed earlier this week.
Coca-Cola cited declining sales, as well as glass bottle supply challenges, as reasons for its decision to discontinue Honest Tea. The company also believes its other ready-to-drink tea brands, Gold Peak and Peace Tea, are better positioned for growth.
“Moving from a three-brand tea portfolio to a priority two-brand tea line will free up investment resources and supply chain capacity to better meet consumer needs and capture category share,” said Sabrina Tandon, director of ready-to group. -drink teas for Coca-Cola North America, she stated in a press release.
Despite removing Honest Tea from its portfolio, Coca-Cola will continue to produce its line of Honest Kids beverages. The company will also retain ownership of the Honest Tea brand, despite the phase-out of its products.
In addition to Honest Tea, Gold Peak and Peace Tea, The Coca-Cola Company’s coffee and tea portfolio includes Fuzetea and several brands sold primarily abroad, including Ayataka, Costa Coffee, Dogadan and Georgia.