Words of Wisdom from Seth Goldman (Founder of Honest Tea)

Show Notes

Clay and Doctor Z break down powerful quotes from the founder of Honest Tea, Seth Goldman.

FUN FACT – The company was started in 1999 and took over 15 years to become a massive success.

  1. First 5 years – $16.3 million
  2. Second 5 years – $90 million
  3. Last 5 years – $392 million
  4. Coke first bought 40 percent of Maryland-based Honest Tea in February 2008 for about $43 million, with an option to buy the rest.
    1. https://www.reuters.com/article/us-cocacola-honesttea/coke-buys-remaining-stake-in-honest-tea-idUSTRE72055U20110301

FUN FACT – Goldman got his idea to start Honest Tea as a result of trying to solve his own problem. He went on a run and he and his friend could not find anything to drink from the grocery store that had less than a total of 12 spoonfuls of sugar. Their original goal was to provide the world with a beverage that had 70% less calories than their competitors.

FUN FACT – Honest Tea was able to gain its’ first real momentum in 1998, when the national grocer, Whole Foods decided to take a risk and order of 15,000 bottles of the tea that he had actually brewed in his own kitchen.

FUN FACT – Without access to capital, it was impossible for Seth to scale Honest Tea so he ended up selling out to Coca-Cola in 2011, after the company acquired 40% of the companies shares.

Business Coach | Ask Clay & Z Anything

Audio Transcription

3 2 1 broadcasting live from the center of the business coach universe, presenting the world’s only business school without the bs, with optometrist can’t entrepreneur, dr. Robert zoellner, and he ussba entrepreneur of the year clay clark get ready to enter the thrive time show on talk radio 1170 next couple months. Here we doing kind of a fun. Segment together what I’m going to be doing as I’ve read so many books and I like to go through the books as i, read them and I’ll go through as I read them and I will highlight the things that matter so I’m going through the highlights of books, written about very successful people that their autobiographies and biographies an in kind of distilling. They want to get your take on these books. One of the books, I read was a book about startups. It was talking specifically an interview with the founder of honest tea, first off to check, if you were having honest tea before I know who they are, but I’ve never had it i, don’t recall rt what kind of tea that my wife would get like at whole, foods or something you know, unsweetened. That kind of sucks, the founder of golden start, the company in 1999. It took him about 15 years to become what is now known as a massive success. What happened was he is he was working out with a buddy and when you work out, you just did just my hypothesis here.

This is a guess, a little behind. If you working out, why are people working out? Why would someone workout to get in shape to be fit to get pumped? So you could you tell me this because you are a guy who’s. Health-conscious rural health expert. Walk me through this. If you I saw this the other day at a fitness place where I work out in the mornings and I started to laugh and then how to catch myself and realize, I cannot laugh, but if you, if you’re drinking a monster energy drink, that thing is filled, 77 grams of sugar with sugar and if you’re drinking, and so these guys are working out and they go to the grocery store to have like a tea after working out, you know and seth is, is aware of how weight gain habits. So will you have in your body is a lot of business coach sugars. He can you go to explain two listeners roughly what happens when you have a lot of sugar of sugary beverage? What is the body do with the sugar and I meant to my position? Told me this that the other day and I was like wow and it was some crazy number, but if you’re 20% body fat higher your chances of having diabetes and heart problems is like way higher, higher and I need to google it cuz i, don’t see a number and it be wrong, but it was, he was like shocking. Lehigh could do best for your body is to lower your body. Fat cecily said, but you know just take some time and i. Think so sad is that you see people work so hard and they’re working on their business and they get time freedom and financial freedom and then they die. So here is:when did you enjoy it? So here’s the move, here’s a move, you everyone can do. We have a lot of business owners that we coach, who are in the fitness industry and one thing that you’ve you look at. You say what what causes fat spiking insulin?

Okay, so if you want what causes a spike and it’s when it’s carbohydrates and sugar, so seth is working out and he goes to look at these drinks and goes on the on the shelf and it looks migos that one has 12 spoonfuls of sugar, that’s the equivalent. When you look at 12 spoonfuls of july running on a treadmill while drinking monster energy drinks, it’s the business coach equivalent of eating three candy bars, killing yourself on a treadmill will say it’s the equivalent of a monster energy drink, 12 spoonfuls of sugar, while working out that can’t be a moped sugar than other people. That think this way, and so his goal was to produce a beverage that had 70% less calories than any other competitor but see who’s kind of ahead of his time, I mean i, mean right now or organic or gluten-free or trying to avoid sugar non gmo. Non-gmo people are now becoming more health-conscious. This is 15 years ago. I mean z. This was back in like 2003. This was a time where you and your drinking red bulls and then red bulls to go that mean you’re, cute you’re, double fisted, red bulls I mean you’re doing what you have to do and you’re drinking monster between them. So did he starts to gain momentum overtime and he realized i. Think you would like the story, but he realizes that in order to go to the next level, I start cold, calling the big stores in the big stores rejection, rejection rejection, but he gets a hold of whole foods whole foods whole foods market I got a fresh market in whole fresh market on route to my wife, as my wife is very high class hybrid, high class woman, high standard she’ll go to whole foods walmart frozen fruit, food section and just discovered I’m just having a salt lick, that’s frozen, you get to whole foods. The whole foods loves having those funky independent brands like laura’s, ground, beef, dude, lawrence, ground beef, ground beef or kevin’s skyscreamer, shanice’s candies, and it’s always something like somebody just bought. You was made in the kitchen of a of a guy who lives in colorado and order 15000 bottles that was getting rejected every day. So sad, I wasn’t there, but I’m sure steph thinks to himself.

Okay, absolutely will get it done. Then he puts the phone and it goes holy. Crap we’re currently brewing all this out of my kitchen, yea, sues, wife, I’m sure friend, your friend family you’re, going to your going to make 15000 bottles of micah’s. Currently, so you realize it’s impossible to keep up with demand once whole food starts, a capital c lot of entrepreneurs are underfunded. Big dream! Underfunded! You see a lot I seen it a lot, so he reaches out to coca-cola and in 2011 hated to do whatever member member chipotle was purchased. They were acquired by mcdonald’s mcdonald’s, just known at me. If you’re, like non-gmo you’re, all about eating organic mcdonald’s, probably make you have panic button, haha you’re panicking how old is tracy? Definitely not organic. Gluten-free chipotle had to team up with them to scale. They did I mean when a choir to put as a thing. So here we are reaches out to coca-cola the see if you were looked. Is there any sugar in coca-cola? There’s a tad bit of sugar wolf fund that your teeth to be made exactly the way you want it to be made the same formulation, but we are now officially in control and he says soviet susie. The first teaching moment here is when you have a business, you always say you have to know when to cook that pic when your business coach rules. What does that mean? Well i, take what that means. Is you got to know when to celebrate? You have to celebrate victories. You have to I think one of the things that I know what my staff would I would I used to do a lot more with them and not as much as late, but I would say:okay, here’s our sales goal for the month. If we hit that will take everybody out for pizza and bowling or magoo magoo, we play billiards there. So we never is a couple been able to afford going to find billiard hall in one car and i. Remember when she took show me we’re going to magoo’s I was like we’re going out we’re going out football and there’s a drink ticket.

We get to have a beverage or toll-free. We have every size, they remove water from the neighbor. For weird that you take the snap to magoo’s yeah, you have to celebrate because it’s the journey, you’re celebrating you know I can’t you just give you know if you’re always like well aren’t you know where we going where we going, and so he was kind of the move that I did and really help build camaraderie and it was time to sell the auction. It have to be somewhat soul-sucking when you saw them and they’re like yeah, maybe aren’t you I did and that’s why I waited at my non-compete and start a new one, but you like the way you work you like slow, r&b songs from like the marley 90s, look like marvin gaye, 2 minute of you. I, x yeah, it’s so I dropped at the building, play I will, always, love you on the pragmatic, the effective, the real you capitalize did not real you get into the fake you, the part of you that would just cry when you drove by the auto auction. 17 miss it and that’s why I did get back into it again. Miss you, like crazy, crazy I know how things used to be now shuffle the shuffle only don’t drink a coke drink. The healthy daily, been selling that for years and I was like calling on behalf of darth vader and not a company called coca-cola. Here. Is the deal. Here’s a teaching moment one you have to know sometimes when to sell out of your take on this as a attorney to get an offer to sell their business. Quite often I mean maybe once a week we’re dealing with some sort of asset purchases and sellers always are hesitant to. Let me too it’s human nature that you and natalie overvalue your own stuff and undervalue the other guy stuff, and so, when you get an offer that you undervalue the other guys stuff, that’s correct. I will say this categorically i, don’t got you any guy stuff. I want to put that out. That’s fair enough! Most owners come in even with a great financial offer. They just can’t let go. They want to go I’m only going to sell if I get to stay on a ceo or I’m only going to sell with you if I run, all of the meetings and I know if you’re listening right now and some reason that may want to prepare their companies sell, they have dream too soon be acquired in the business coach future, be acquired us. What are the steps? When do they do they? They call you. Do you prefer faxes? Do you prefer people to send you an mp3? How do people get ahold of you know? You know the telephone and email work, white, wells’s, 918-494-6868, 918-494-6868, or you can just check this out all of her stuff online ww.W. Winners king.Com, and we can walk you through it even either you have an offer or how do we prepare ourselves to get our stuff in order so that when we get an offer where they don’t get scared away preview, you see where they started honest tz and he’s making 15000 bottles of tea out of his own kitchen? He had the market with guerilla marketing. This is where you don’t have a lot of money. Do you have any scrap it and see? It was crappy where to go back to your days when you first open the optometry clinic and you had to be scratched, crap and I want to hear all the dirty moves. All the ninja move. All the duct tape moves bait and switch much bored on here.

When you were holding out that my daughter. Will you use your kids for marketing liberty outfit I want to hear all that put it on right now. Put it on every minor league. Baseball team in america are all right. So we got back we’re talking about gorilla marketing 101 want to attend the legendary drive time show business workshop for free, subscribe on itunes leave. It objected review and send his confirmation at info at drivetime show.Com to claim your tickets want to live in a van down by the river, come by and see us at our riverwalk offices and will be able to make your dreams come true. Welcome back to the conversation in before we get to back into the show notes before we get to in the deep into the life and times of seth golden the founder of seth goldman, the founder of honest tea z I want to celebrate a victory and mr. West carter who’s, taking guerilla marketing to the next about the founder of honest tea and how he was able to get his company to a place where he was making 15000 bottles of tea. What does kitchen suite a thriver, who attended a conference about a year ago, zee-zee this one? The first business coach conferences we had his name is luke. Owen’s company is called the hub gym in downtown broken arrow. Would you start a business? He been in business for over a decade and you don’t have a huge budget to grow your business until you get to a certain point. What are the moves? Marshalls he’s doing he’s doing? Is we have a large inflatable, a literal gorilla, a white marsh? Have you seen the girl didn’t I haven’t seen it in person? I’ve seen pictures of it, but i, don’t know I can’t I believe it is 15 ft tall is 50. Is it 12 off mic, but 21? And if you drive downtown to main street broken arrow actually puts the gorilla up as part of his gorilla market and just today z he hit a milestone after this been in business for over 11 years. He hit a thousand members today. So big shout out to the hospital and luke owen’s right there to see in this is what he said about growing honesty to a place where he was making 15000 bottles of tea in his own kitchen. We don’t we just. We don’t spend our money on advertising the weather companies do we’re always looking for alternative ways to connect with people.

So we engage in guerrilla marketing campaigns that are unique to our sector, so I asked you think back to the days before you get a forward:fancy schmancy radio it before you could afford before you can afford the big tv ads the radio at all the things you’re doing there now. Is he now that you’re kind of a big deal like I mean? What did you do to get people in the door for the first move, I made was I there’s a product in the local newspaper that was the tv guide and I thought of all things, and in the newspaper that people got to hang on to any part of newspaper that hang on to the tv guide guide that you know that you have a digital and all that kind of stuff. So this is 26 years ago right. If so, I would I would do a small, add cuz. That’s all I could afford a small out of the corner of it and I would grow. That add to finally I had to backpage write a full-page ad talk to you in great detail about this part. But when you, when I met with you for lunch, you told me clark, you need to advertise, you need to advertise a page at what we did. Is it got rid of air conditioning and heat to my wife. Was you basically the test prep her for you? She was more scrubs and help you dilate the human pupil glorified one step above a front desk person was correct and vanessa was doing that job. We combined our income, I income of working at applebee’s, target and directv she’s working at your place and she’s going to school full-time at or you we business coach  consolidate into one car. We turned off or air-conditioning. We didn’t have cable, we got rid of every expense, possible, I had a third job and we bought that very, very small, yellow page ad, then almost as if two osmosis or as result of taking notes, I decide to make my ad bigger and bigger every year and i. Remember you telling me the story that every year you just can’t make it a bigger stop digging. Why do you have to just start with something? Will you left something out on on what you also purchase i, don’t know how much they cost, but I’m sure was a large percentage of your net worth of that time. The speakers in your car, because we wouldn’t hear you coming to pick up vanessa about two to three blocks away about a half a mile. The windows in the building repore requires is the trifecta, the three tips. If you want to stay poor, okay, one is you want to be aggressive and impossibly uncoachable, very, very aggressive and not open to any mentorship. Let me know if you’re going to stay, for that. Second, is you need an addiction or a vice? That you’re committed to mine was I would go into any back of the day. You were sam goody in the mall z sam goody store. If you go back in the day and buy cds, oh yeah, oh yeah, I never went in one of those without coming out with a new hood and master p. Master p was probably make him with the last single that I bought before I realized.

I’ve got to stop doing the remix. There’s limited edition. There’s the beast prince, the b-sides, a shape of like a globe was called the crystal ball. I had to buy that you had no real choice and you are I’m always buying music. I. Couldn’t stop myself that some people gamble people smoke, some people drink. You have to stay committed to a vice. The other one was remade for I had to spend at least a third of my net worth and income on a subwoofer. What mean you want to cook the neighborhood marshall I mean it was. It was a minivan. A mazda maroon is a maroon mazda mpv with 200,000 miles on. It was probably worth $1,000 and I have at least I’m, not exaggerating, probably 9. Grand of it was hot. Now I have a question for business coach dr. Z and it’s for the guerrilla marketing. All the marketing that you’re doing I’ve seen business owners that will wait till the end of whether or not they have any cash left to spend money on marketing.

Rather than spend money first like what you were telling clyde you got them or do you got to find some way to market real quick to stand for, but you have to pretend, like you, don’t know what to do after you’ve been exposed to it so that the higher level of on coachability, it’s working i, would say her doctors. He talked about advertising I just heard marshalls question, but I don’t know, I didn’t want to advertise first marshall. It needs to come off. The top advertising is the lifeblood for gas pedal. It’s what makes your company go. You know and if we all, we all think that this new day and age is viral. I, don’t know what this word:violence like I’m, just open the doors. It’s going to be a viral explosion of my business. You know, that’s not the reality of it is great, but you got to get some words. You guys get some mouse in there like to study origin of words and in greek in the greek I’m, not sure if you would believe the word business coach going. Viral means lazy, mixed with mindless hopeless, that’s about it! What it means to be viral right, it’s lazy, plus mine, mindlessly hope. Oh yeah yeah, so we come back from the break. I want to get into the market. Your business with guerrilla marketing I demand. More of our show today gives us one guerilla marketing move. You have used to get where you are powerful. People want to know. How do you market a the big dream, with a very very small budget

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