La Colombe Coffee Roasters: Todd Carmichael and J.P. Iberti. A Brotherhood Built on Coffee (2020)
Episode
68 min
Read time
2 min
Topics
Productivity, Health & Wellness, Relationships
AI-Generated Summary
Key Takeaways
- ✓Direct Farm Sourcing Strategy: Build trust through repeated visits to coffee-growing regions like Haiti, Rwanda, and El Salvador. Farmers receive promises from many buyers who never return. Consistent presence over years establishes credibility, allowing roasters to bypass exploitative middleman chains and secure premium beans while paying farmers fairly.
- ✓Premium Pricing Through Education: Position coffee as a culinary spice rather than commodity beverage. La Colombe charged mid-seven dollars per pound versus industry standard one-fifty by explaining quality differences to chefs. High-end restaurant kitchens understood premium ingredient economics, creating sustainable margins without price resistance from sophisticated buyers.
- ✓Investor Alignment Matters Critically: Vet investors for shared values before accepting capital. La Colombe's first private equity partner lasted only fifty-two days before fundamental disagreements emerged over cold brew versus cafe expansion. Finding craft-focused investor Hamdi Ulukaya from Chobani required paying double to exit, but enabled proper strategic direction.
- ✓Category Expansion Without Abandonment: Maintain energy across all business channels simultaneously rather than shifting focus. La Colombe operates five categories including wholesale, cafes, and ready-to-drink products. Treat business lines like children—adding new ones doesn't mean neglecting existing revenue streams. Each category strengthens overall brand presence and revenue stability.
- ✓Mental Health Reset Enables Growth: Recognize when burnout threatens business viability and take extended breaks. Todd spent three months on a remote Pacific island with zero connectivity, fishing and writing therapeutically. JP maintained operations with core team. The sabbatical prevented permanent departure and enabled subsequent company transformation and billion-dollar valuation.
What It Covers
Todd Carmichael and JP Iberti built La Colombe Coffee Roasters from a single Philadelphia cafe into a billion-dollar specialty coffee company, pioneering third-wave coffee culture and direct farm sourcing while navigating mental health challenges and investor conflicts.
Key Questions Answered
- •Direct Farm Sourcing Strategy: Build trust through repeated visits to coffee-growing regions like Haiti, Rwanda, and El Salvador. Farmers receive promises from many buyers who never return. Consistent presence over years establishes credibility, allowing roasters to bypass exploitative middleman chains and secure premium beans while paying farmers fairly.
- •Premium Pricing Through Education: Position coffee as a culinary spice rather than commodity beverage. La Colombe charged mid-seven dollars per pound versus industry standard one-fifty by explaining quality differences to chefs. High-end restaurant kitchens understood premium ingredient economics, creating sustainable margins without price resistance from sophisticated buyers.
- •Investor Alignment Matters Critically: Vet investors for shared values before accepting capital. La Colombe's first private equity partner lasted only fifty-two days before fundamental disagreements emerged over cold brew versus cafe expansion. Finding craft-focused investor Hamdi Ulukaya from Chobani required paying double to exit, but enabled proper strategic direction.
- •Category Expansion Without Abandonment: Maintain energy across all business channels simultaneously rather than shifting focus. La Colombe operates five categories including wholesale, cafes, and ready-to-drink products. Treat business lines like children—adding new ones doesn't mean neglecting existing revenue streams. Each category strengthens overall brand presence and revenue stability.
- •Mental Health Reset Enables Growth: Recognize when burnout threatens business viability and take extended breaks. Todd spent three months on a remote Pacific island with zero connectivity, fishing and writing therapeutically. JP maintained operations with core team. The sabbatical prevented permanent departure and enabled subsequent company transformation and billion-dollar valuation.
Notable Moment
When La Colombe needed to roast coffee in their Rittenhouse Square cafe but lacked proper ventilation, Todd jackhammered into the building's garbage chute without permission, creating a makeshift chimney. They roasted at night, hid from fire department inspections, and dropped bowling balls down the chute to dislodge stuck trash.
You just read a 3-minute summary of a 65-minute episode.
Get How I Built This summarized like this every Monday — plus up to 2 more podcasts, free.
Pick Your Podcasts — FreeKeep Reading
More from How I Built This
Shopify: Tobias Lütke. How a snowboarder built a $150 billion business (2019)
Jun 8 · 58 min
This Week in Startups
One Genius Rule That Made This Coffee Brand Famous | EP 2262
Mar 14
More from How I Built This
Advice Line with Tim Ferriss (August 2025)
Jun 4 · 47 min
Foundr
633: We Built a $42M Business by Reinventing Coffee | Purity Coffee
Feb 20
More from How I Built This
We summarize every new episode. Want them in your inbox?
Shopify: Tobias Lütke. How a snowboarder built a $150 billion business (2019)
Advice Line with Tim Ferriss (August 2025)
UGG: Brian Smith. How an epiphany, surfers, and $500 launched an iconic sheepskin footwear company.
Advice Line with Jeffrey Hollender of Seventh Generation
Justin’s Nut Butter: Justin Gold. He Was Waiting Tables, Then...He Reinvented Peanut Butter.
Similar Episodes
Related episodes from other podcasts
This Week in Startups
Mar 14
One Genius Rule That Made This Coffee Brand Famous | EP 2262
Foundr
Feb 20
633: We Built a $42M Business by Reinventing Coffee | Purity Coffee
Everything Everywhere Daily
Jun 2
Yemen's Long and Complicated History
The Jordan Harbinger Show
May 28
1334: Justin Garcia | Why We Live, Cheat, Break, and Die for Love
Masters of Scale
May 7
Raising Cane’s secret recipe for scaling, with CEO Todd Graves
Explore Related Topics
This podcast is featured in Best Business Podcasts (2026) — ranked and reviewed with AI summaries.
Read this week's Health & Longevity Podcast Insights — cross-podcast analysis updated weekly.
You're clearly into How I Built This.
Every Monday, we deliver AI summaries of the latest episodes from How I Built This and 192+ other podcasts. Free for up to 3 shows.
Start My Monday DigestNo credit card · Unsubscribe anytime