Elizabeth Olson offers a case study of what happens when a global conglomerate (Coca-Cola) acquires a stake in an earnest start-up (Honest Tea) and then attempts a little arm-twisting. In brief, Seth
Goldman's juices and teas made their reputation by using natural sweeteners such as sugar. Coke, which took a 40% interest in Honest Tea in 2008 and has an option to buy the rest in 2011, took umbrage
at a phrase on the packaging of the company's Honest Kids' line: "no high-fructose corn syrup."
Some of Coke's products contained the controversial factory-produced syrup, of course.
"We got a strong request to change the wording," says Goldman. Alternative suggestions, besides ditching the banner altogether, included: "No fake stuff" and "Sweetened with organic cane sugar."
Coke maintains "sugar is sugar is sugar." Goldman says he doesn't want to get into that debate. And while he knows he needs Coke's distribution arm to grow, he was careful to retain
control over his brand in crafting the deal. For now, the line remains and it appears the deal is likely to be completed.
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