Co-Founding Honest Tea

Barry Nalebuff
Co-Founder and Professor
1hr, 2min
November 17, 2022
About the Show

"If you had unlimited resources, would you keep doing what you are doing now? If that's true, you are doing the right thing."

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Barry Nalebuff is Co-Founder of Honest tea, Kombrewcha, Real Made Foods, and Just Ice Tea.  Barry is also a professor at Yale School Of Management, and has authored multiple award-winning books. 

Key Moments

In this episode, learn how Barry co-founded multiple successful food and beverage products using real economic principles. Class is in-session: Dive into concepts like declining margins of utility, arbitrage, games of inversion and symmetry, and negotiation tactics like “splitting the pie.” Don’t forget to take notes as Barry explains how these concepts helped him build a successful business that sold for $43 Million. 


  • (00:00) - Intro
  • (06:46) - The Idea Behind Founding Honest Tea
  • (11:17) - The Declining Margin Of Utility
  • (15:15) - You Can’t Have Lovers If you Don’t Have Haters
  • (17:34) - How To Make “Honest” Products
  • (20:00) - Origin Of The Name “Honest Tea”
  • (22:09) - Personal Financial Guarantees In Entrepreneurship
  • (24:51) - What Does It Mean To “Split The Pie” 
  • (25:44) - Selling Honest Tea to Coca Cola
  • (28:57) - Never Offer A Deal You Wouldn’t Take Yourself
  • (38:38) - What Is “Just Ice Tea”
  • (44:27) - What Is The Game Of Arbitrage? 
  • (48:04) - The Games of Inversion and Symmetry
  • (51:49) - Pitfalls 




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