The Ultimate Guide for Creating Products People Trust | Seth Goldman (Honest Tea)
Episode
63 min
Read time
2 min
Topics
Health & Wellness, Relationships, Investing
AI-Generated Summary
Key Takeaways
- ✓Supply chain alignment: Goldman spent 8 years converting Honest Tea to fully organic and fair trade, but launched Just Iced Tea with these certifications on day one. Tea ingredients cost pennies per bottle, allowing 10x spending versus competitors while maintaining affordability and democratizing organic products at scale.
- ✓Rapid market entry: After Coca-Cola discontinued Honest Tea in May, Goldman launched Just Iced Tea by September—90 days from decision to shelf. Retailers Whole Foods and Sprouts made off-cycle category resets to fill 12 feet of suddenly vacant shelf space, accelerating what normally takes months.
- ✓Lean scaling strategy: Just Iced Tea reached Honest Tea's tenth-year revenue in three years with half the headcount. Goldman eliminated the CFO role, avoided owning bottling plants, and leveraged 27 years of supplier relationships to secure extended payment terms and priority ingredient access from day one.
- ✓Third-party verification power: Goldman requires external certification for all claims—organic seals instead of "natural," fair trade certification instead of "socially conscious," nutrition labels instead of "healthy." This locks product quality standards and prevents future compromise, building customer trust through verifiable accountability rather than marketing language.
- ✓Mission-driven loyalty returns: When Coca-Cola discontinued Honest Tea, suppliers, distributors, and team members immediately committed to the relaunch. One tea supplier who invested in organic certification asked if the discontinuation meant the fair trade experiment failed, spurring Goldman to rebuild and honor their multi-decade supply chain investments.
What It Covers
Seth Goldman shares how he built Honest Tea from kitchen samples to Coca-Cola acquisition, then launched Just Iced Tea in 90 days after Coke discontinued the brand, scaling faster by embedding organic and fair trade standards from day one.
Key Questions Answered
- •Supply chain alignment: Goldman spent 8 years converting Honest Tea to fully organic and fair trade, but launched Just Iced Tea with these certifications on day one. Tea ingredients cost pennies per bottle, allowing 10x spending versus competitors while maintaining affordability and democratizing organic products at scale.
- •Rapid market entry: After Coca-Cola discontinued Honest Tea in May, Goldman launched Just Iced Tea by September—90 days from decision to shelf. Retailers Whole Foods and Sprouts made off-cycle category resets to fill 12 feet of suddenly vacant shelf space, accelerating what normally takes months.
- •Lean scaling strategy: Just Iced Tea reached Honest Tea's tenth-year revenue in three years with half the headcount. Goldman eliminated the CFO role, avoided owning bottling plants, and leveraged 27 years of supplier relationships to secure extended payment terms and priority ingredient access from day one.
- •Third-party verification power: Goldman requires external certification for all claims—organic seals instead of "natural," fair trade certification instead of "socially conscious," nutrition labels instead of "healthy." This locks product quality standards and prevents future compromise, building customer trust through verifiable accountability rather than marketing language.
- •Mission-driven loyalty returns: When Coca-Cola discontinued Honest Tea, suppliers, distributors, and team members immediately committed to the relaunch. One tea supplier who invested in organic certification asked if the discontinuation meant the fair trade experiment failed, spurring Goldman to rebuild and honor their multi-decade supply chain investments.
Notable Moment
A Coca-Cola chairman told Goldman the goal was making Coca-Cola more like Honest Tea, not the reverse. While the tea brand was eventually discontinued, Honest Kids scaled to over 500 million units annually in McDonald's and Subway, removing a billion empty calories from American diets yearly.
Episode Transcript
One of the suppliers, had sent me a note and just said, you know, this is very it's it's a gut punch for us too economically, but it's also is was this a failure to to move towards organic and fair trade? And that was the probably the note that best spurred me to action. So I got together with my Eat the Change cofounder Spike Mendelson, the chef, and I said, you know, this is an opportunity. Are you interested? And he said, yeah. Welcome back to the Eric Ries show. Today, I'm joined by my friend Seth Goldman, who has defined being a mission driven entrepreneur in our generation. Seth is a founder of an iconic product you've seen at the grocery store called Honest Tea. He grew this from nothing, literally brewing samples of iced tea in his kitchen to eventually selling the company to Coca Cola. Today, he's running a new iced tea company called Just Iced Tea, the fastest growing bottled tea brand in The US. But his impact goes beyond iced tea. He's also the chair of Beyond Meat, helped build PLNT Burger, and is one of the mission guardians of Tony's Chocolonely. What these companies all have in common is the idea that business itself can be a force for good in the world. In our conversation, Seth opens up about how to scale a company with values. He talks about pioneering organic and fair trade supply chains to literally hearing Coke CEO tell him, we want Coca Cola to be more like Honest Tea, not the other way around. And of course, he tells the story of what happened next. If you have kids, you probably serve them an Honest Kids box drink. He also shares the emotional story of how when Coca Cola ultimately discontinued Honest Tea, he had to rebuild the entire company from scratch in just ninety days and why he saw that moment not as a setback, but but as a chance to bring justice back into the bottle. This conversation was an honest, hopeful, and deeply human look at what it means to lead with purpose even when the odds are stacked against you. I hope you enjoy my conversation with Seth Colvin. Alright, Seth. Always a pleasure to have an excuse to have a conversation. Thank you for making time. Great to be with you. So I wanted to start you know, you're you're obviously very well known now as a mission driven entrepreneur and, you know, one of the pioneers of of the iced tea category and so many other things. But I wonder if we could start before that. You know, I know you had a career in politics and in government before you got into business. And I think if I read right if I remember right, at the Yale School of Management, you had this epiphany that business could be an instrument of change. And I wonder if you could take us …
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