Chapter 6. What Could Be More Inspiring Than Honesty?

THE FIRST INKLING OF A BUSINESS OPPORTUNITY CAME TO HONEST TEA’S FOUNDERS, BARRY NALEBUFF AND SETH GOLDMAN, IN 1994, WHEN NALEBUFF WAS TEACHING AND GOLDMAN WAS STUDYING AT THE YALE SCHOOL OF MANAGEMENT. NALEBUFF, A PROFESSOR OF BUSINESS STRATEGY, WAS DISCUSSING A STUDY OF BOTTLED DRINKS WITH GOLDMAN, ONE OF HIS TOP STUDENTS, WHEN THEY CONVERGED ON A FACT THAT CAUGHT THEIR ATTENTION: ALL NONDIET DRINKS EXCEPT BOTTLED WATER—NOT JUST SODAS, BUT FRUIT JUICES, SPORTS DRINKS, AND ICED TEAS, TOO—WERE LOADED WITH SUGAR, USUALLY IN THE FORM OF HIGH-FRUCTOSE CORN SYRUP. EVERY MAJOR NATURALLY SWEETENED DRINK ON THE MARKET HAD THE EQUIVALENT OF 10–12 TEASPOONS OF SUGAR IN A SMALL CAN OR BOTTLE.

In marketing terms, sugar sells. Food packagers usually find that the more sugar they can add to almost any food product, the bigger their sales. Whether it’s good for customers is another matter. Well-known nutritionist and best-selling author Marion Nestle calls bottled drinks “liquid candy,” and the harm they do extends not just to decaying teeth, but also to the obesity and diabetes epidemics that now plague the United States.