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Honest Tea CEO Speaks to Smith Students

Seth Goldman, co-founder and CEO of Honest Tea, shared his start-up experiences and lessons learned with over 25 Smith MBA students on April 26, 2008.

Just a decade ago, Goldman left his job at the Calvert Group and began brewing teas in his kitchen. Goldman took a mock-up bottle and several thermoses to Whole Foods Market (then Fresh Fields), and managed to land an order for 15,000 bottles.

“When I got that offer in the meeting, I was thinking, ‘Can we make that much?’” he said. “And we did. Our original investors have made 28 times their initial investment in 1998.”

With help from co-founder Barry Nalebuff, Goldman’s former business school professor, the Honest Tea has grown from five original varieties to four product lines and over 25 flavors. And in February 2008, Coca Cola purchased a 40 percent interest in the company.

Goldman told students he has no regrets about the path he and his company have taken. “What I’ve learned is illustrated in this Chinese proverb,” he said. “’Those who say it cannot be done should not interrupt the people doing it.’”

▓ Donna Lin, MBA Candidate 2009, Smith Media Group

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