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Special to NSIDE Sweet Leaf Tea Brews a Recipe for Success Written by: Special to NSIDE
Issue: July 2010 | NSIDE Medical
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The Austin-based organic tea company has come a long way from pillowcases and crawfish pots.

A day spent at the Sweet Leaf Tea headquarters in Austin is not your typical day at the office. Forget dreary white walls, suits and ties and the perpetual sound of typing on a keyboard. Instead, envision a wide-open space where employees sport blue jeans and play ping pong on their lunch breaks.

Envision a place where Sweet Leaf Tea bottle decals decorate the walls, every office door has a “grannyism” written on it and the office dogs (famous for their prominent placement on your favorite tea flavors) lazily lounge around in good company. While it was not an easy journey for Sweet Leaf Tea to get to where it is today, it is this vibrant, cool, “feels-like-home” atmosphere that has aided the company in its long journey to success.

Sweet Leaf Tea was founded in 1998, based on a desire to create a ready-to-drink organic beverage with a delicious, southern-style, homemade, sweet-tea taste.

Inspired by granny’s famous family recipe, the first batches of tea called for premium tealeaves and organic cane sugar. With a small operation and little to no funding, drinks were brewed in Beaumont, Texas, using pillowcases as tea bags and crawfish pots as brew tanks.

Tea bottles were filled by hand, and the first orders were fulfilled by transporting the tea in a beat-up, old van that spent more time in the driveway than it did on the road.

After becoming a local hit, the brand’s first big victory came at the Austin City Limits Music Festival in 2002, during which more than 10,000 bottles were sold. In 2003, Sweet Leaf Tea moved its headquarters to Austin, where it has remained ever since.

One of the largest indicators that Sweet Leaf Tea had made it to the big time came in March 2009 in the form of a $15.6 million investment by Nestlé Waters North America Inc., a subsidiary of Nestlé.

With this investment came broader distribution and support from one of the largest corporations in the world, which meant more Sweet Leaf Tea in more stores nationwide. While this was a significant change and boost in the company’s capabilities, it was only the first of many great things to come.

In March 2010, after more than 12 years with the company, founder Clayton Christopher stepped down as CEO and handed over the reins to Sweet Leaf Tea Company President and former Nestlé General Manager Dan Costello.

Christopher had worked closely with Costello for a year, and after seeing that Costello was a great fit for the company, Christopher decided it was time for him to leave and allow Sweet Leaf Tea to grow to its full potential.

“Clayton did an amazing job in getting this company to where it is today, and I could not feel more honored to help lead it to where it can be tomorrow,” said Costello, current Sweet Leaf Tea CEO. “There is so much more to Sweet Leaf Tea than profits and sales. Our company, brand and teas all have a distinct personality to them, and we thrive on finding new opportunities to make sure that fun, social approach shines through in everything we do.”

In April 2010, a mere month after Costello took over as head of the company, Sweet Leaf Tea announced it was acquiring a competitor tea brand in Cincinnati-based Tradewinds Beverage Co. Purchased for an undisclosed amount, Sweet Leaf Tea would keep Tradewinds beverages, distribution and company name as-is for the time being. The two companies would, however, share distribution, making Sweet Leaf Tea reach even broader.

Over the years, there have been two constants about Sweet Leaf Tea that have remained – and will continue to remain – the same. First, Sweet Leaf Tea is going to inevitably continue to expand. From a small core staff, the company has grown to a staff of 50 employees.

Outgrowing its original Austin location, the company has moved to the historic Penn Field, where the brewing geniuses now have ample room to come up with the next amazing flavor. From the original bottle, the company’s packaging offerings have grown to include a 16-oz. glass bottle, a 20-oz. plastic bottle, a 64-oz. multi-serve plastic container and most recently, a 15.5-oz. can.

From the Original Sweet Tea, flavors have been added and changed several times. Currently there are 12 delicious flavors ranging from favorites like Organic Peach Sweet Tea and Organic Half & Half Lemonade Tea to three diet flavors and even an unsweetened option. The two newest flavors, Organic Citrus Green Tea and Organic Lemon Iced Tea, debuted as recently as May 2010.

The second constant for Sweet Leaf Tea is that no matter how many stores its beverages are sold in, how many flavors or packaging options it offers, whose name appears on the official company letterhead or what other companies it may acquire, Sweet Leaf Tea will always hold true to its mission of providing consumers with a delicious, organic, homemade-quality beverage that tastes like it was delivered straight from granny’s tea kettle. Sweet Leaf Tea is not just a brand. It is not just a drink in a supermarket aisle. It is a lifestyle – a way of being that encourages embracing every moment like a refreshing drink on a hot day.

“As much as we care about selling a great-tasting tea, we also care about having fun and enjoying life,” said David Smith, Sweet Leaf Tea vice president of sales.

“Our brand is a reflection of the things we love: music, friends [and] even our pets. Those who have been around our team know that more than anything. We are a family. It is this embracing, positive attitude and wonderful group of people that truly [make] Sweet Leaf Tea what it is today.”

Sweet Leaf Tea continues to move forward with this goal in mind. In the coming months, the organic tea company will launch a comprehensive digital and online media campaign that will allow fans and customers to interact with the brand for the chance to win prizes like concert tickets, guitars and a year’s supply of tea, etc. With its roots deeply ingrained in the music scene of Austin, Sweet Leaf Tea is always at the forefront of the next big music event and will have a presence at festivals like the Austin City Limits Music Festival and Lollapalooza. In addition, Sweet Leaf Tea is doing its part to give back to our U.S. military men and women by doing a summer campaign in select stores with a portion of profits going to the Fisher House Foundation.

And of course, Sweet Leaf Tea is also continuing to perfect and create more delicious flavors for all the sweet-tea lovers. Yes, there are busy times ahead at Sweet Leaf Tea, but time is of the essence, and as granny always said, “waste not, want not” (grannyism No. 27).

For more information about Sweet Leaf Tea and its entire selection of delicious, organic beverages, please visit www.sweetleaftea.com, or call 512-328-7775.

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