# Honest Tea: Seth Goldman

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2017-01-16
- Length: 29m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman

## Summary

Seth Goldman, co-founder of Honest Tea, explains how he identified a 'sweetness gap' in the beverage market and launched the company with $50,000 from his father. He details the early challenges of securing a Whole Foods order, brewing tea in mesh bags at a juice plant, and navigating distributor rejection. Goldman also discusses a critical quality failure involving faulty glass bottles that forced a voluntary recall, and how maintaining control through a unique equity structure allowed Honest Tea to grow before being acquired by Coca-Cola.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=0) Introduction: Seth Goldman and Honest Tea
- [2:19](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=139) Identifying the Sweetness Gap and Securing Seed Capital
- [5:27](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=327) Pitching Whole Foods and Personal Challenges
- [8:53](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=533) Early Production: Brewing Tea in Mesh Bags
- [11:09](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=669) Gaining Traction and Distributor Rejection
- [17:01](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=1021) The Glass Bottle Recall and Financial Struggles
- [19:31](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=1171) Equity Structure and Avoiding Dilution
- [21:57](https://hardwarepodcasts.com/podcast/how-i-built-this/2017-01-16-honest-tea-seth-goldman#t=1317) Coca-Cola Investment and Acquisition

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Quality & yield](https://hardwarepodcasts.com/topic/quality-and-yield)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)

## Most relevant to

founders before launch, early-stage companies, companies scaling up

## Mentioned

- Honest Tea (product)
- Whole Foods (company)
- Coca-Cola (company)
- Snapple (product)
- Arizona (product)
- Tetley (company)
- Nice Mug (product)

## Related episodes from other shows

- [#51 Pure Gold Series: Ask Seth Goldman Anything! Plus the Announcement of Just Ice Tea](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-07-06-51-pure-gold-series-ask-seth-goldman-anything-plus-the-announcement-of-just-ice) (The Startup CPG Podcast)
- [#115 Pure Gold Series: Lessons on Iterating from Seth Goldman + Updates on Eat the Change & Just Ice Tea](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2023-11-21-115-pure-gold-series-lessons-on-iterating-from-seth-goldman-updates-on-eat-the-c) (The Startup CPG Podcast)
- [#46 Pure Gold Series: Keep Going! Reflection on Coca-Cola's Discontinuation of Honest Tea with Seth Goldman](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-06-01-46-pure-gold-series-keep-going-reflection-on-coca-colas-discontinuation-of-hones) (The Startup CPG Podcast)
- [#247 - How to Build a Board  with Seth Goldman, JUST ICE Tea](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-05-05-247-how-to-build-a-board-with-seth-goldman-just-ice-tea) (The Startup CPG Podcast)
- [#100 Toasting to 100 Episodes of The Startup CPG Podcast with Our Favorite Moments](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2023-07-25-100-toasting-to-100-episodes-of-the-startup-cpg-podcast-with-our-favorite-moment) (The Startup CPG Podcast)

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