Coca-Cola Aims to Expand Tea, Looking at Acquisitions

The company might buy or make an investment in Honest Beverages, a privately-held maker of Honest Tea.

Tea is a priority area," Chief Executive Neville Isdell told Reuters on the sidelines of the World Economic Forum.

Coca-Cola, like arch-rival PepsiCo Inc, has suffered a domestic slowdown in sales of its traditional soft drinks as health-conscious consumers opt for bottled water or tea, which they view as healthier.

The U.S. group already has a strong position in water, where it ranks third in the world, helped by last year's acquisition of vitamin-water maker Glaceau.