DAVOS, Switzerland Coca-Cola Co., the world’s largest soft drink company, is expanding its tea business and will look at acquisitions to improve its position.
Like arch-rival Pepsi-Co, Coca-Cola has suffered a domestic slowdown in sales of its soft drinks as consumers move toward such healthier options as bottled water or tea. The company’s U.S. Group already has a strong position in water, currently ranking third in the world, helped by last year’s acquisition of Glaceau.
Chief Executive Neville Isdell told Reuters Wednesday that “Tea is a priority area. Tea is one area where we’ve seen our performance has not been as good as we would like it to be.” Isdell has declined to comment on reports the company may purchase or invest Honest Beverages, maker of Honest Tea.