A 17 year old high school dropout turned a $10K loan from his mom into a $1B+ company.
The crazy part?
Theyโve never bought an ad.
This is the crazy story ๐๐ฝ๐๐ฝ๐๐ฝ
The crazy part?
Theyโve never bought an ad.
This is the crazy story ๐๐ฝ๐๐ฝ๐๐ฝ
1/ GT Dave was born in 1977 in Beverly Hills.
The youngest son of Loraine and Michael, who were disciples of Sathya Sai Baba and big into eastern medicine.
He was a miracle baby, Sathya blessed him as destined for greatness.
They could have never predicted what would happen...
The youngest son of Loraine and Michael, who were disciples of Sathya Sai Baba and big into eastern medicine.
He was a miracle baby, Sathya blessed him as destined for greatness.
They could have never predicted what would happen...
2/ In 1993, Dad smuggled home a gelatinous mushroom known as a SCOBY used to brew a special fermented tea.
The family started brewing that weekend and while the parents loved it, the kids hated it.
Everything changed in 1994, when a real miracle happened...
The family started brewing that weekend and while the parents loved it, the kids hated it.
Everything changed in 1994, when a real miracle happened...
3/ Loraine was diagnosed with stage 3 breast cancer. They thought she had a year to live at most.
But she made a full recovery - her doctors were astounded!
What was different about her that kept it from spreading?
Loraine credited her family's tea, adamant it had saved her
But she made a full recovery - her doctors were astounded!
What was different about her that kept it from spreading?
Loraine credited her family's tea, adamant it had saved her
4/ An article came out about her miracle recovery in LA Mag, and another about the drink in NYT.
GT wasn't doing well in school, and dropped out to get his GED in 1993.
The next year, Loraine pushed him to start bottling the family tea.
He started with his dad's recipe...
GT wasn't doing well in school, and dropped out to get his GED in 1993.
The next year, Loraine pushed him to start bottling the family tea.
He started with his dad's recipe...
5/ GT brewed his tea less acidic than his dads so it was easier for new drinkers to enjoy.
For his first batch, he polished each bottle and put a label on exactly 3 inches from the bottom.
If he was going to be a professional, they needed to look machine made...
For his first batch, he polished each bottle and put a label on exactly 3 inches from the bottom.
If he was going to be a professional, they needed to look machine made...
6/ GT Dave was ready to sell his teaโฆwhich you may know as kombucha.
Only 17, he suited up and asked his dad to come to Erewhon - health food store to the stars.
GT wanted an adult along to make him look serious.
That day was the first time a store sold kombucha in the US.
Only 17, he suited up and asked his dad to come to Erewhon - health food store to the stars.
GT wanted an adult along to make him look serious.
That day was the first time a store sold kombucha in the US.
7/ 2 days later they were sold out.
Demand grew quickly.
GT moved his brewing op from a few punch bowls in the kitchen to the entire dining room.
His mom's story alongside a top notch product was proving to be a winning combination.
That first year GT Dave's cleared $150k.
Demand grew quickly.
GT moved his brewing op from a few punch bowls in the kitchen to the entire dining room.
His mom's story alongside a top notch product was proving to be a winning combination.
That first year GT Dave's cleared $150k.
8/ In 1995, a series of news articles kick off a Kombucha craze. It had become the new "it" health food.
Celebrities became fans of GTs' and had cases delivered since stores were selling out.
The business was doing great, just as a dark cloud descended on the family...
Celebrities became fans of GTs' and had cases delivered since stores were selling out.
The business was doing great, just as a dark cloud descended on the family...
9/ Justin, GT's oldest brother, died of terminal bone cancer
His parents relationship started to fray, and they divorced shortly father
This brought him and his mom closer together.
In 1997, Mom became employee #1 and they rented a 2,000sqft facility to increase production..
His parents relationship started to fray, and they divorced shortly father
This brought him and his mom closer together.
In 1997, Mom became employee #1 and they rented a 2,000sqft facility to increase production..
10/ In 1999, GT Dave's Kombucha was selling ~$1MM a year just around LA.
He got a call from Whole Foods - still early with only 100 stores nationwide. The Whole Foods deal instantly doubled their volume.
This was the partnership that would make him a billionaire...
He got a call from Whole Foods - still early with only 100 stores nationwide. The Whole Foods deal instantly doubled their volume.
This was the partnership that would make him a billionaire...
11/ By 2005, Whole Foods had almost doubled their store count and was growing fast. They asked GT to roll out with them nationwide.
In turn, he started searching for a new factory. Touring potential options, an empty lot caught his eye...
In turn, he started searching for a new factory. Touring potential options, an empty lot caught his eye...
12/ He took a soil sample to his psychic.
She told him it would bring great things. He bet everything he had plus debt to build a brand new factory.
It was a massive bet that paid off bit. By 2009, GT's was selling > $35MM a year!
And painted a target on his back...
She told him it would bring great things. He bet everything he had plus debt to build a brand new factory.
It was a massive bet that paid off bit. By 2009, GT's was selling > $35MM a year!
And painted a target on his back...
13/ In 2010, a new competitor over-fermented their tea to the point bottles began to burst on the shelves.
Whole Foods pulled all kombucha in response.
At the same time lawsuits about Loraine's miracle recovery story on the bottle popped up..
Whole Foods pulled all kombucha in response.
At the same time lawsuits about Loraine's miracle recovery story on the bottle popped up..
14/ The two troubles combine into a class action lawsuit, which settled for $40k after $350K in lawyers fees.
GT entertained a few acquisition offers during that time, but they all required him to give up control of the recipe...
GT entertained a few acquisition offers during that time, but they all required him to give up control of the recipe...
15/ GT refused. He never wanted money, it just came with making a top notch product.
โI got into this because kombucha saved my momโs life. She's the reason I do what I do.
Until the day that I find a way to clone myself,โ says Dave, โI donโt see a second factory happening.โ
โI got into this because kombucha saved my momโs life. She's the reason I do what I do.
Until the day that I find a way to clone myself,โ says Dave, โI donโt see a second factory happening.โ
16/ He still oversees and tastes every batch personally and drinks almost 2 gallons of the stuff each day.
In 2016, GT began making coconut yogurt as their first non-kombucha product
In 2018, the company rebranded as GT's Living Foods and opened a new 260,000sqft facility.
In 2016, GT began making coconut yogurt as their first non-kombucha product
In 2018, the company rebranded as GT's Living Foods and opened a new 260,000sqft facility.
17/ By 2019, the company was doing > $350MM in sales... This year that will likely break $400MM.
GT is one of the only fully bootstrapped beverage entrepreneurs in the world and still holds 100% of the company.
As market leader, they sell about 40% of all kombucha in the US...
GT is one of the only fully bootstrapped beverage entrepreneurs in the world and still holds 100% of the company.
As market leader, they sell about 40% of all kombucha in the US...
18/ That's the power of following your heart (and first mover advantage)
GT has paved the way for dozens of kombucha startups since, inspiring a generation of homebrewers turned entrepreneurs.
That's amazing.
GT has paved the way for dozens of kombucha startups since, inspiring a generation of homebrewers turned entrepreneurs.
That's amazing.
19/ Sources:
latimes.com/archives/la-xpโฆ
wmagazine.com/story/kombucha
forbes.com/sites/chloesorโฆ
howbrandsareborn.com/blog/gt-livingโฆ
karagoldin.com/podcasts/gtdavโฆ
inc.com/magazine/20150โฆ
timesmachine.nytimes.com/timesmachine/1โฆ
gtslivingfoods.com/pages/our-story
latimes.com/archives/la-xpโฆ
wmagazine.com/story/kombucha
forbes.com/sites/chloesorโฆ
howbrandsareborn.com/blog/gt-livingโฆ
karagoldin.com/podcasts/gtdavโฆ
inc.com/magazine/20150โฆ
timesmachine.nytimes.com/timesmachine/1โฆ
gtslivingfoods.com/pages/our-story
20/ This story is a reminder that:
1) You don't need to compromise quality to scale
2) Doing what feels right is often the right decision
3) Focus on fundamentals
4) First to market makes the market
5) You shouldn't be in it for the money
And that anyone can do it...
1) You don't need to compromise quality to scale
2) Doing what feels right is often the right decision
3) Focus on fundamentals
4) First to market makes the market
5) You shouldn't be in it for the money
And that anyone can do it...
21/ If you enjoyed this thread, follow me @jspujji
I tweet Bootstrapped Giants stories like this every week.
Also this thread is dedicated to my amazing wife @tweepika who drinks GTs every day!!
RT the whole thread to share this amazing story!!
I tweet Bootstrapped Giants stories like this every week.
Also this thread is dedicated to my amazing wife @tweepika who drinks GTs every day!!
RT the whole thread to share this amazing story!!
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