The Journey Towards Sustainable Business

HONEST

U.S.-China Greener Consumption Forum March 22, 2013 REFRESHINGLY HONEST

Company Background

HONEST

We Were Thirsty

Co-founders Seth and Barry start operations out of Seths house in Bethesda, MD - February, 1998 First sale was to Whole Foods regional office with five thermoses and empty Snapple bottle

Introduced worlds first organic bottled tea 1999; Introduced the worlds first Fair Trade Certified bottled tea 2003
February 2008 The Coca-Cola Company makes a minority investment (40%) in Honest Tea March 2011 - The Coca-Cola Company acquired Honest Tea

REFRESHINGLY HONEST

15 Years Ago

HONEST

Help eliminate billions of calories from the American diet

Support the growth of organic agriculture; promote recycling

Honest Tea

Help spread Fair Trade labor standards in the developing world

REFRESHINGLY HONEST

Why Honest Tea Works As a Brand

Honest Company Culture Authentic Ingredients

HONEST

Authentic Marketing

Authentic Taste

Authentic Relationships Just A Tad Sweet

REFRESHINGLY HONEST

Taking Mission to Scale

HONEST

REFRESHINGLY HONEST

Taking The Great Recycle to Scale

HONEST

REFRESHINGLY HONEST

Taking Community Impact to Scale

HONEST

0 4000 lbs. recycled in year one 0 200,000 lbs. recycled in first two years
7 REFRESHINGLY HONEST

Drink Pouch Brigades

HONEST

Honest Tea created a lower-calorie, less-sweet, organic thirst quencher for kids, but
The material used to make these pouches is a multi-layer laminate, it isnt recyclable and most end up in a landfill. Honest Tea and TerraCycle teamed up to launch the Drink Pouch Brigades

REFRESHINGLY HONEST

March 2011

Our Journey Toward Fair Trade

HONEST

1999 introduced first organic certified bottled tea Partnered with Itchik Herb, a woman-owned company on the Crow Reservation, to supply peppermint

10

REFRESHINGLY HONEST

Quenching Mission Before Taste

HONEST

11

REFRESHINGLY HONEST

Quenching Mission and Taste

HONEST

12

REFRESHINGLY HONEST

Organic & Fair Trade Tea Garden Tamil Nadu, India

HONEST

13

REFRESHINGLY HONEST

A Fair Trade Journey

HONEST

2003

2009

1/12 Varieties

2011*

19/19 FT Tea Varieties

* Tulsi is in the process of being converted to FT

14

REFRESHINGLY HONEST

Early Stage Tulsi Agriculture Organic but not yet FairTrade

HONEST

15

REFRESHINGLY HONEST

Proving Product First

HONEST

66% Annual Growth

16

REFRESHINGLY HONEST

Closing Thoughts

HONEST

Sustainability is a journey Products must be market-driven or market-driving: mission is not enough Supply chain reliability is critical Each community has different needs

17

REFRESHINGLY HONEST

HONEST

18

REFRESHINGLY HONEST

HONEST

19

REFRESHINGLY HONEST