# Honest Tea: Seth Goldman (2017)

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2018-06-11
- Length: 29m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017

## Summary

Seth Goldman, founder of Honest Tea, explains how he identified a 'sweetness gap' in the beverage industry and launched Honest Tea from his kitchen in 1997. He details the early challenges of securing a $15,000 bottle order from Whole Foods, navigating distributor rejection, and managing a critical product recall involving faulty glass bottles in 2003. Goldman also discusses the strategic decision to maintain founder control through a reverse equity structure, leading to a significant investment and eventual acquisition by Coca-Cola.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=0) Introduction: Seth Goldman and Honest Tea
- [1:20](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=80) The 2003 Glass Recall Crisis
- [3:16](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=196) Identifying the Sweetness Gap and Quitting Calvert
- [6:24](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=384) Securing the First Whole Foods Order
- [9:18](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=558) Brewing Tea in a Buffalo Juice Plant
- [13:24](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=804) Distributor Rejection and Cash Flow Challenges
- [17:55](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=1075) The Faulty Glass Bottle Incident
- [20:08](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=1208) Reverse Equity Structure and Founder Control
- [22:52](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=1372) Coca-Cola Investment and Acquisition
- [27:13](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-06-11-honest-tea-seth-goldman-2017#t=1633) Postscript: Jaya Iyer and Svaha Inc.

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)

## Most relevant to

early-stage companies

## Mentioned

- Honest Tea (product)
- Whole Foods (company)
- Coca-Cola (company)
- Calvert Investments (company)
- Svaha Inc. (company)
- Jaya Iyer (other)
- Tetley (company)
- Snapple (product)
- Arizona (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)
- [#219 - Managing People at Work with Seth Goldman of JUST Ice Tea](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2025-10-21-219-managing-people-at-work-with-seth-goldman-of-just-ice-tea) (The Startup CPG Podcast)

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