HT Mission.pdf

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2015 Mission Report Korakundah tea estate, Tamil Nadu, India Photo by Theodore Kaye

Transcript of HT Mission.pdf

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2015 Mission Report

Korakundah tea estate, Tamil Nadu, IPhoto by Theodore Kay

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KEEPING IT HONEST| 2015 MISSION REPORT

TABLE OF CONTENTS

INTRODUCTIONLETTER FROM TeaEO . . . . . . . . . . . . . . . . . . . . 2

LETTER FROM MISSION CONTROL. . . . . . 3

CREATESOURCING SNAPSHOT. . . . . . . . . . . . . . . . . . 4SUPPLIER SPOTLIGHT. . . . . . . . . . . . . . . . . . . . 5

PRODUCTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6PACKAGING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

CONNECTDONATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9CONSUMER ENGAGEMENT. . . . . . . . . . . . .10CONTINUING THE CONVERSATION. . . . . 11

CULTIVATEVOLUNTEERING. . . . . . . . . . . . . . . . . . . . . . . . . 12

BETHESDA HQ. . . . . . . . . . . . . . . . . . . . . . . . . . . 13ACCELERATING IMPACT. . . . . . . . . . . . . . . . 14

LETTER FROM THE T eaEOWelcome to our sixth annual Mission Report.You may ask, if Honest Tea has been in businesssince 1998, how come we only started puttingout mission reports seven years ago? Theanswer has to do with the timing of our sale toThe Coca-Cola Company. Of course, we triedto be mindful of our mission before we tookin our rst investment from Coke in 2008, butwe realized that our stakeholders who gave usthe benet of the doubt when we were a small,independent company grew more skepticalwhen we became part of the world’s largestbeverage company.

So in 2009 we hired our rst Director of Missionand started the annual discipline of reportingon how our enterprise impacts the ecosystemas well as our consumers. Though I’m proud ofour efforts as a mission-driven enterprise whenwe were an independent company strugglingto survive, I can condently state that ourapproach to our mission has been morecomprehensive and effective since Coca-Cola's investment. Though scale is not theonly way to measure the impact of our mission,it’s certainly notable that our brand has grownmore than sevenfold in the seven years sinceCoke’s rst investment in Honest Tea.

While we update the data around our organicand fair trade purchases consistently eachyear, we like to play around with the focus andformat of each new Report so that it continuesto function as a living document. This year we

added my favorite new section, “Real Talk”, inwhich we get to highlight where we have comeup short. Most corporate social responsibilityreports take on the tone of cheerleadingdocuments, but I nd it more interesting tolearn how a company is challenging itself. Ifwe are being honest about where our world isin terms of diet and nutrition and environmentand gaps in economic opportunity, it’s going totake a lot more real talk.

We welcome your real talk too – please let usknow how you think we can improve this reportand our efforts to more effectively address ourmission.

Honestly yours,

Seth GoldmanCo-founder and TeaEO

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KEEPING IT HONEST| 2015 MISSION REPORT | 3

MISSION STATEMENTHonest Tea seeks to create and promote great-tasting, healthier, organic beverages. We striveto grow our business with the same honestyand integrity we use to craft our products, withsustainability and great taste for all.

A MESSAGE FROM MISSION CONTROL

This past Spring, I had the good fortune to travelto India to visit some of the estates where wesource organic & fair trade black tea leaves. I

was with a small team from Honest Tea & Coca-Cola made up of people from purchasing,marketing, mission and sales. The purpose ofthe trip was to connect, listen and learn aboutthe ways life has improved and the challengesthese communities still face.

Organic and fair trade have always been core tothe Honest Tea mission. 3rd-party certicationshelp us maintain trust and transparency with ourpartners, especially in remote, impoverished

agricultural regions like northeast India. But thisexperience reminded me there’s no substitutefor developing personal relationships. Wehave the data to show certications can helpimprove quality of life measures... It’s anotherthing entirely to experience the mix of hopeand uncertainty in the eyes of a tea pluckerright in front of you.

Our Brand Director, Ami Mathur, expressedthis sentiment well in one of our monthly email

newsletters:I left [India] inspired. And I left proud. Proud to work

for a brand that is refreshingly honest and one that trulywants to leave a mark in this world and the lives of people."

We hope you’ll enjoy meeting the tea pluckersand estate workers from India (proled in thisreport, on our website and on social media)as much as we did. Keep the conversationgoing and share your honest story with us.

PROMOTING HEALTH & WELLNESS

REDUCING OUR ENVIRONMENTAL FOOTPRINT

CREATING ECONOMIC OPPORTUNITY

MAINTAINING TRANSPARENCY

BUILDING COMMUNI TEA

THE 5 PILLARS OF OUR MISSION

WE’RE NOT PERFECT, JUST HONEST

We’ve always tried to be open and transparent aboutour business and products. We believe that you have

a right to know about both our triumphs and ourfailures, and we hope that you’ll support us as wecontinue to evolve and improve. Luckily, researchshows that 87% of global consumers believe it’sokay if a company isn’t perfect, as long as it is honestabout its CSR efforts (2015 Cone Comm./Ebiquitystudy). These “REAL TALK” call-outs are our wayof highlighting some of our missed opportunities, inan effort to hold ourselves accountable and sharelessons learned for others on a similar path.

REAL TALK

We may not always give the answer or makethe decision you want, but we promise we’relistening.

Honestly,

Jenny Burns, Director, Mission

Honest team members with tea pluckers, Assam, India

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KEEPING IT HONEST| 2015 MISSION REPORT

CHOOSING THE RIGHT IMPACT METRICSAlthough our sales increased in 2014, you’ll noticethat our pounds of organic ingredients purchased didnot increase at the same rate. This is due to someforward buying of ingredients in 2013 based onvariable growing seasons and availability. Knowingthis mis-match of purchases and production willbecome more common as we grow, we consideredswitching the way we report our ingredients from“purchased” to “sold” for each calendar year. But wewant to keep the reporting as consistent as possible,so we’re sticking with purchases.

REAL TALK

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SOURCING SNAPSHOT

2 1,1 ,

%

SERVINGS SOLD IN 2014

, ,LBS. ORGANIC INGREDIENTS PURCHASED IN 2014

,FAIR TRADE PREMIUMS PAID IN 2014

POUNDS OF ORGANIC INGREDIENTS FAIR TRADE PREMIUMS

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0 $250,000

,

2009

2010

2011

2012

2013

2014

0 8M

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UNIT SALES GROWTH IN 2014

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KEEPING IT HONEST| 2015 MISSION REPORT

REAL TALKTULSI AND FAIR TRADE CERTIFICATION

We introduced our rst bottled herbal tea made withorganic tulsi, a sweet basil from South Asia, in 2012,and not long after that we created a freshly brewedversion for restaurants, called Lemon Herbal Tea. Notonly do we love tulsi's lightly sweet and owery avor,but we have also developed a close relationship withthe farmer cooperation that supplies it.

Tulsi is one of the only herbs we source that isnot Fair Trade Certied through Fair Trade USA.We have initiated conversations with them aboutgaining certication. However, the effort and costof certication only becomes feasible at a certain

minimum purchase volume—and as of now, basedon our sales of these varieties, we cannot committo buying enough tulsi for this to happen. We willcontinue to look for ways to support this farmer groupand we hope to share news of their certication inthe future.

school bus, and subsidize stoves for more communitymembers.

The Korakundah tea estate can be found in the bluemountains of Tamil Nadu, an Indian state roughly 2,000miles south of Assam. Korakundah’s general manager

was one of the rst fair trade officers in India over 25years ago, helping to set and implement its standards.Today the community is ourishing. Workers use fairtrade premiums for retirement plans and pensionprograms, as well as for university scholarships forhigh-performing youth at the local school. Premiumsalso have been used to help fund a hospital that’sopen to the broader community and an orphanagethat cares for around 40 boys and girls.

CHECKING IN WITH THE TULSI FARMERSIn 2012 Seth visited our organic tulsi suppliers inBengaluru, India. He participated in a ribbon-cuttingceremony for a drying shed that would enable thefarmers to earn 26x more value per kilo. When ourDirector of Mission, Jenny, visited the same communitythis past spring, the farmers proudly showed her twoadditional sheds that had been built to accommodatethe growing demand for the herb. She also helpedbreak ground on a permanent facility that will allow thecommunity to process the leaves on site.

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SUPPLIER SPOTLIGHTA TALE OF TWO TEA ESTATESMembers from our tea-m traveled to India this pastMay to visit with farmers and learn more aboutthe communities’ needs. The Tonganagaon andKorakundah estates both grow organic and fair tradeblack tea, but that’s where the similarities end.

Tonganagaon is located in a remote area of Assamin northeast India. The estate has a long history thatbegan under the British and then transferred to Indianownership after the country gained its independence.The community was almost decimated in the 1990safter the owners declared bankruptcy, living with littleincome or social services for over a decade.

A family-owned company purchased the estate in2008 and set out to revitalize it by introducing organicand fair trade standards. The workers were initiallyskeptical that the new management would deliveron the promise of fair trade certication, but theyhave since come to trust and appreciate it as they’veexperienced the benets. The workers voted to usethe premiums for mosquito nets, cooking staples,bicycles, and gas cooking stoves. They are working onplans to build a permanent school house, purchase a

Tonganagaon tea estate, Assam, India

Korakundah tea estate, Tamil Nadu, India

Harvesting organic lemon tulsi

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KEEPING IT HONEST| 2015 MISSION REPORT

NEW PRODUCTS:

WATERMELON LEMONADEThis year we added Watermelon Lemonade to ourSummer Refreshers line. Along with the rest of theRefreshers, Watermelon Lemonade is sweetenedwith Fair Trade Certied sugar, supporting our sugarfarmers in Paraguay.

UNSWEETENED HERBAL TEASIn early 2015 we unveiled two new unsweetened,caffeine-free herbal iced teas as part of our glass-bottleline. Cinnamon Sunrise and Ginger Oasis Herbal teasboth use brewed organic herbs to create a bold andsatisfying taste. These refreshing zero-calorie drinksalso support the American Beverage Association'scommitment to cut beverage calories consumed perperson by 20% by 2025.

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PRODUCTSA NEW PARTNERSHIP WITH WENDY’SThis year we took a big step in our journey to makeorganic products accessible to more people. In May2015, over 5,800 Wendy’s locations across the countrybegan exclusively offering our brewed TropicalGreen Tea. The tea leaves and cane sugar are bothcertied organic and fair trade, and contains around120 calories per 20 . oz. serving. This partnership willalso have a signicant impact on our global supplychain: in 2015, we estimate that we will purchaseapprox. 1 million pounds of organic ingredients for theWendy’s product alone. Compare this with our organicpurchases across all of our products in 2007 (justbefore Coca-Cola invested in us) of approx. 800,000pounds in total.

TRANSITIONING TO FAIR TRADECERTIFIED CANE SUGAR ACROSS OURPORTFOLIOIn 2014 we transitioned the organic cane sugar inour 16 . oz. glass bottled teas and 32 . oz. summerrefreshers to Fair Trade Certied. We source it from afarming cooperative in Paraguay that uses its fair trade

premiums to support healthcare services, farmingequipment, schools, and microloans.

We’re excited to announce that earlier this year wecompleted the transition of cane sugar to fair trade inthe freshly brewed iced teas we offer at restaurantsand cafeterias as well. We’re now working to convertthe cane sugar in our teas in 16.9 . oz. plastic bottles,and hope to have that nished within the year. We’llupdate the information on our labels and websiteaccordingly.

CONVERTING HONEST FIZZ TOCERTIFIED ORGANICEarlier this year we transitioned all of our zero-calorieHonest Fizz varieties to USDA organic. We hadlaunched the line in 2013 using conventional zero-calorie sweeteners because organic sweetenerswould have made our sodas twice as expensive asnon-organic options. However, over the last few yearsthe cost of conventional sweeteners has risen whilethe price of organic sweeteners has decreased. Usingorganic sweeteners still increases our costs by roughly70%, but we found a way to realize packaging savingsby shifting from a slim can to a more standard soda can.

In addition to the organic conversion, we alsointroduced a new variety – Golden Ginger Ale.

Honest Tropical Green Tea in 5,800 Wendy's locations

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REAL TALK

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GOODBYE TO SKUSIt’s always hard to say goodbye to our products:

BERRY HIBISCUS LEMONADE

NOT TOO SWEET TEA

FROM HONEST ADE TO HONEST TEAIn January, we reformulated our 3 Honest Ade varietiesinto herbal teas by infusing brewed ingredientssuch as hibiscus, orange peel and lemon balm. Thismove brought us closer to our roots as a brewed teacompany while providing a similarly great "just a tadsweet®" taste.

As we grow and reach a wider breadth of teadrinkers, we occasionally decide to update some ofour recipes. Rest assured that we do not take thislightly (check out Seth’s article about the trials andtribulations of "ring" a product).

We reformulate products for two main reasons:1) we run into challenges sourcing a particular ingredient,or 2) we believe we're improving the taste. We know noteveryone will like every change we make, but we try tobe as responsive as possible to the feedback.

In one instance earlier this year, we changed ourHalf Tea and Half Lemonade recipe to include stevia.Our research had told us the change would be wellreceived but as soon as the new formulation hitthe shelves we quickly heard from fans that it wasnot. So many people contacted us to share theirdisappointment that we switched the recipe backwithin a month.

Other times, the reviews are more mixed. We alsoreformulated our “Peach White Tea” to black “PeachTea” to give the drink a more robust tea base and a juicier peach avor, bringing the sugar levels in linewith our other black teas in the plastic bottle. Wereceived many letters praising the change, but alsoreceived many lled with confusion and frustration.

We decided to stick with the new Peach Tea recipe,but regret that so many of our loyal fans felt blindsided.We should have done a better job communicating thechanges. Meanwhile, the sales of our Peach Tea havegrown since the reformulation.

UPDATING OUR RECIPES

CREATE

Have you recently changed the formulation ofthis product? I think it used to be called "White" tea or

peach. This is about the only bottled beverage I drinkand I noticed a change in the avor, calorie content(about 5 grams more sugar) and the label graphics. Ihave to say, I LOVE the new formulation!! I can tastethe peach avor much more than in the previousformulation. I'm really pleased with the change. I thinkthe new one tastes better than the older one and Ithought that one tasted pretty good! Thanks for makinga great product even better!"

This is just a sad lament that Peach White Tea isgone. It was my favorite iced tea in the world, and I hadan Amazon subscription for a case a month. Then youchanged it to Peach Tea and made it sweeter. I havetried to get used to it, but I can't. Last Wednesday Ihad a bottle of old Peach White Tea that I found in astore, and that only conrmed my judgment that the twoteas are substantially different products. I canceled mysubscription. Apparently I am in the minority, and most

people prefer a sweeter drink, but for me it was perfectwhen it was truly Just a Tad Sweet."

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REAL TALK

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PACKAGINGHONEST KIDS ALSO COMES IN A BOXThis year we launched new packaging for our HonestKids line in club and food service locations after asuccessful test in the northeast. The new aseptic TetraBrik® is recyclable in over 50% of U.S. municipalities,helping to address our concerns about the recyclabilityof the pouch packaging. It is also easier to hold andopen, and provides a better value per case. We expectto transition more than a quarter of the Honest Kidsbusiness to the aseptic container, and plan to keep theremaining business in pouches that are a better t forsome markets for the time being.

THE PLASTIC IN OUR 16.9 FL OZ BOTTLE

Our line of teas in 16.9 . oz. plastic bottles has gonethrough a number of redesigns over the last fewyears. We’ve made some mistakes along the way (weheard from you loud and clear about that dome onthe bottom), but we have learned from each of them.

This year, we introduced a total package redesignfeaturing updated ingredient imagery and a tallerbottle. While the bottles are made from recyclable #1PET plastic, they do not feature any recycled or plant-based plastic material.

As a company selling most of our product in single-

serve containers, we are painfully aware that one of oursignicant environmental impacts is our packaging.But one of the major barriers to incorporatingrecycled or plant-based plastic material comes fromthe fact that we brew our tea right before lling thecontainer. The bottle must be designed to withstanda lot more heat and pressure than beverages lled atcolder temperatures.

We found the high level of engineering and qualitytesting required to incorporate a new type of plasticin time for this redesign was prohibitive—but we areactively working on it for the future.

In the meantime we’ll continue to encourageour consumers to recycle their bottles throughprograms like the Great Recycle, and by placing theHow2Recycle logo on our labels.

TERRACYCLEHonest Tea was a founding member of the TerraCycle®Drink Pouch Brigade® established in 2007 to helpkeep pouches out of landlls. To learn more, visitwww.terracycle.com. Numbers as of June 22, 2015.

,NEW COLLECTION LOCATIONS ADDED IN 2014

,COLLECTION LOCATIONS

TERRACYCLECUMULATIVE SINCE 2007

, ,DRINK POUCHES COLLECTED

OF ALL BRANDS

, ,POUNDS OF DRINK POUCHESDIVERTED FROM LANDFILLS

, ,OF CHARITABLE DONATIONS GENERATED

BY THE DRINK POUCH BRIGADE

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KEEPING IT HONEST| 2015 MISSION REPORT

PROGRAMSPOTLIGHT

ENABLING PRODUCE GARDENS ANDNUTRITION EDUCATION IN SCHOOLSAs part of our mission, we support organizations thataim to teach kids where their food comes from, oftenby growing and harvesting it themselves. This pastyear, we sponsored $61,000 worth of programs runby FoodCorps and Whole Kids Foundation.

Through donations in part from our National Honesty

CONNECT | 9

DONATIONSIn 2014, we joined more than 1,200 businessesas members of 1% For the Planet. In doing so, wecommitted to donate the equivalent of at leastone percent of sales from our tea line in 16 . oz.glass bottles to organizations within the 1% For ThePlanet network. We are now proud to report that weexceeded our commitment in the 2014 calendar year.

IN KIND DONATIONSWe donated over 11,500 Honest Tea products andwearables (e.g. gardening gloves) to non-protsacross the country.

. % OF 2014 SALES EQUIVALENTDONATED FROM OUR GLASSBOTTLED TEA LINE

CONNECT

Jackson, MS

Washington D.C.

I had my last lesson with the after school club I'vebeen serving for two years. I was really proud to seethe kids feel at home in the garden, knowing the namesof the vegetables they pulled, excited about being outthere. I have really seen this group grow and learn somuch and I was happy to see some evidence that Ihad made a difference in a fe w kids' lives." -FoodCorpsservice member, Guildford County, North Carolina

Through donations in part from our National HonestyIndex campaign, we enabled FoodCorps to makeschools healthier places for kids to eat, learn and

grow by providing hands-on nutrition education andschool gardens for nearly 3,000 students. We alsosponsored (and participated in) a national serviceday for their Corps members in 16 states and D.C.last November. More than 150 volunteers participatedin a variety of projects, from pulling the last carrotsof the fall harvest, to winterizing a school garden, togleaning, harvesting and processing meals for food-insecure neighbors. “The event served as a reminderof how doing community service for even just a fewhours can impact the community in a positive way,”said FoodCorps service member Krizl Soriano.

Whole Kids Foundation used scan-back donationsfrom the sale of our Honest Kids pouches in WholeFoods Market to provide school gardens and saladbars at schools across the country. We also awardeda garden grant to a school near Austin, Texas as partof a store display contest we held last summer.

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KEEPING IT HONEST| 2015 MISSION REPORT

NATIONAL HONESTY INDEX 2014

CONNECT | 10

CONSUMERENGAGEMENTAT THE STORE AND ON THE STREETOur mission extends beyond our products, thanks to

the efforts of our regional sales and marketing teams.Here are some highlights.

National Honesty Index - Hoboken NJ

,COLLECTED & DONATED

TO FOODCORPS

The Great Recycle - Union Square NYC

THE GREAT RECYCLE

,

,

CONTAINERS COLLECTED IN 2014

CONTAINERS COLLECTED IN FIRST 3 YEARSAPRIL 2012 APRIL 2015

BIKE GIVEAWAYS

BIKES WON BY FANS IN STORE DRAWINGSJUNE 2014 MAY 2015

ROCK THE LUNCHBOX

REUSABLE LUNCH SACKS WON BY FANSCONTAINING LUNCH APPROPRIATE ITEMS

FROM BRAND PARTNERS IN 2014

CONNECT

%PARTICIPANTSWERE HONEST

,TREE PLANTINGS FUNDED IN RURALCOMMUNITIES AROUND THE GLOBE

JAN 2014 DEC 2015

TREES FOR THE FUTURE

Moringa seedlings

TREES.ORG

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KEEPING IT HONEST| 2015 MISSION REPORT

Timeline Photos

Like . Comment 72.3k

CONNECT | 11

CONTINUING THECONVERSATIONIn 2014 and 2015, Seth continued to spread the HonestTea story across the country. Some of his speakingengagements included:

• Sustainable Business & Social ImpactConference- Fuqua Duke Net Impact

• Bethesda Green Investor Luncheon• Inner City 100 Symposium• Halcyon Incubator Series• BevNet Live• Conservation International• Winter Fancy Food Show• Chicago Department of Health

• Private Company Governance Summit

SOCIAL MEDIAOur goal is to have open and honest communicationwith as many people who contact us as possible –whether it’s with a question, comment, or complaint.

We also enjoy communicating with our fans onFacebook, Twitter, and Instagram as our onlinepresence continues to grow.

% INQUIRIES 17,589 TOTAL

CALL CENTER FEEDBACK

% COMPLIMENTS 633 TOTAL

% COMPLAINTS 3,184 TOTAL

, FANS IN JULY 2015,

UP FROM 452,000 FANS IN AUGUST 2014

TWITTER ENGAGEMENT IN CALENDAR YEAR 2014 :

FACEBOOK ENGAGEMENT IN CALENDAR YEAR 2014 :

, FOLLOWERS IN JULY 2015,

UP FROM 29,400 FOLLOWERS IN AUGUST 2014

20,285 COMMENTS 866,753 LIKES

108,533 SHARES 800 POSTSPost

10,088 RETWEETS18,346 TWEETS

This past year our call center received over 21,000phone calls, letters, and emails from our consumers.We saw a 19% increase in complaints over prior year.Numbers from June 2014 - May 2015.

CONNECT

78 % INGREDIENTS

7% AVAILABILITY

98 % PRODUCT & BRAND

1% LABELING/GRAPHICS

47 % PRODUCT & BRAND

25 % INGREDIENTS

15% PACKAGE

Timeline Photos

Like . Comment 72629

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KEEPING IT HONEST| 2015 MISSION REPORT CULTIVATE | 12

VOLUNTEERINGWe sponsored and participated in four Honest Teagroup volunteer days in 2014. Honest Tea employeesvolunteered a total of 260 hours at these four events.

Corporate Volunteer Council Service Day: Honest Teaco-hosted a park and stream clean up through theMontgomery County CVC. Activities beneted RockCreek Conservancy and Montgomery Parks.

FoodCorps Service Day: Honest Tea employeespartnered with FoodCorps in service days across16 states (and D.C.). Activities focused on feedingnutritious meals to food insecure communities.

Honest Tea Annual Service Day: Honest Tea employeesacross the country volunteered their time at 7 localcommunity farms, including the K Street Farm in D.C.

Martin Luther King Day Service Day: Honest Teaemployees, friends, and families served with City Year

at Eastern High School in Southeast D.C. The tea-mhelped paint murals, prepare sandwiches for a localfood bank and write thank you letters to U.S. troops.

REAL TALKENCOURAGING EMPLOYEE SERVICEOne of the perks that we offer our employees is twopersonal volunteer days to be taken during workinghours, in addition to company service days. We werereally excited to offer this benet, since we know thatour employees enjoy volunteering and often do sooutside of working hours. We thought it would givethem more exibility to serve organizations they arepassionate about.

However, when we evaluated the numbers, wefound that only two people took advantage of thisopportunity in 2014. We heard from our employeesthat while the benet is nice in theory, they nd itdifficult in practice to take the time off. They alsoprefer to serve in a group with their colleagues. Inresponse, we’ve offered more structured serviceopportunities on a quarterly basis.

Corporate Volunteer Council Service Day

FoodCorps Service Day

Honest Tea Annual Service Day

CULTIVATE

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KEEPING IT HONEST| 2015 MISSION REPORT CULTIVATE | 13

BETHESDA HQSNAPSHOTWe’ve experienced some changes here at BethesdaHQ over the last year. You may have noticed that ournumber of employees has dropped from roughly 150to 40. Not to worry – many roles were moved intogroups within Coca-Cola North America to work withmultiple brands in addition to Honest. We believecollaborating with other brands can help magnify ourimpact.

HONEST TEA EMPLOYEE FEEDBACKThis year we conducted an anonymous survey to getfeedback on our business and culture from HonestTea employees. Here’s a look at what our employeeshave to say about working here.

What excites you about the direction HonestTea is taking?

The world/business of Honest Tea is everevolving. The brand has showed consistentgrowth and innovation since I started,opening new doors for me and allowing meto face new challenges.

What do you nd most motivational aboutworking for Honest Tea?

Strong values, ethics, clear direction, supportfrom above the positive impact of our businesson consumers and on the environment andour supplier communities

How could Honest Tea help you do thingsmore efficiently and better?

360 reviews and role reversals could helpsolidify job respectability and responsibilitieswith less micromanagement.

What changes in direction would you likeHonest Tea to make?

To have more knowledge on where thecompany is going and where my future isheaded with the company.

REDUCING HQ PAPER USAGESince 2012, we have decreased our paper use in theBethesda office per person by 48%. In 2012 we printed20 pages per day per person, assuming an averageof 35 people in the office. Over this past year (July

2014-June 2015), we printed 10.3 pages per day peremployee, assuming an average of 25 people in theoffice. We continue to use paper made from sugarcane waste to further reduce our footprint.

AWARDSWe’re proud to be recognized for our commitment toour consumers, employees, and community.

• Washington Business Journal:2014 Healthiest Employers

• Beverage World Magazine:2015 #1 Beverage Disruptor; Seth Goldman

• Montgomery County Corporate VolunteerCouncil: 2014 Corporate Community ServiceAward

• Maryland Dept. of the Environment:2015 Maryland Green Registry Leadership Award

Q:

Q:

Q:

Q:

A:

A:

A:

A:2014 CVC Corporate Community Service Award

AS OF JUNE 2015

TOTAL NUMBER OFEMPLOYEES

. % WOMEN

%MINORITY

BIKES GIVEN TOHONEST EMPLOYEES

IN 2014

OUT OF

EMPLOYEES BASEDIN THE BETHESDA

OFFICE WHO COMMUTEBY BIKE OR METRO

CULTIVATE

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KEEPING IT HONEST| 2015 MISSION REPORT

ACCELERATING IMPACTOur mission continues to scale as our brand grows.

Take a look at our current impact compared to theyear before The Coca-Cola Company rst invested inHonest Tea.

ANNUAL SERVINGS SOLD

, ,2007 2014

, ,

CULTIVATE | 14

CULTIVATE

ANNUAL POUNDS OF ORGANICINGREDIENTS PURCHASED

,2007 2014

, ,

ANNUAL POUNDSOF FAIR TRADE INGREDIENTS

PURCHASED

,2007 2014

, ,

,2007 2014

,

ANNUAL FAIR TRADEPREMIUMS GENERATED

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