La Colombe Coffee Roasters: Todd Carmichael and J.P. Iberti. A Brotherhood Built on Coffee (2020) - How I Built This Recap

Podcast: How I Built This

Published: 2026-01-12

Duration: 1 hr 9 min

Guests: Todd Carmichael, J.P. Iberti, Peter Mann

Summary

Todd Carmichael and J.P. Iberti co-founded La Colombe Coffee Roasters with the vision to elevate coffee quality in the U.S. Their journey from a grunge concert in Seattle to a $900M acquisition by Chobani encapsulates their role in the third wave coffee movement.

What Happened

Todd Carmichael and J.P. Iberti's journey into the coffee industry began with an unexpected meeting at a grunge concert in Seattle during the 1980s. Both shared a passion for high-quality coffee, which led them to dream of opening a premium roastery and café. Their vision was to bring a level of coffee quality to the United States that was previously unseen.

In 1994, they brought their dream to life by founding La Colombe Coffee Roasters in Philadelphia, despite never having visited the city before. The choice was strategic, leveraging Philadelphia's architectural beauty and proximity to New York City. Their initial roastery faced significant challenges, including ventilation issues that led to frequent visits from the fire department.

The duo's strategy involved directly appealing to high-end chefs and restaurants, positioning their coffee as a high-quality product comparable to a spice, which justified its higher price. They initially sourced their coffee beans from Paragon Coffee in New York and made a bold move by pitching their coffee uninvited at a top French restaurant.

Todd Carmichael's personal journey was marked by a challenging childhood and a need for financial security. He took a sabbatical due to mental health issues, spending time on a remote island. Despite these personal struggles, he emphasized the importance of luck and hard work in their success, attributing a 50-50 balance between the two.

The expansion of La Colombe included exploring new business avenues like cold brew and ready-to-drink coffee. However, a problematic private equity investment led to financial difficulties, which were resolved by a buyout facilitated by Hamdi Ulukaya, founder of Chobani.

In 2023, La Colombe was acquired by Chobani for $900M, marking a significant milestone in their journey. Their draft latte cans became a significant success, distributed widely across U.S. grocery stores, cementing their role as pioneers in the third wave coffee movement.

Key Insights

• La Colombe Coffee Roasters was founded in 1994 in Philadelphia by Todd Carmichael and J.P. Iberti, who chose the city for its architectural beauty and proximity to New York City, despite never having visited before.
• The company initially sourced its coffee beans from Paragon Coffee in New York and gained traction by directly pitching their high-quality coffee to top chefs and restaurants, positioning it as a premium product comparable to a spice.
• La Colombe's financial difficulties due to a problematic private equity investment were resolved by a buyout facilitated by Hamdi Ulukaya, founder of Chobani, which later acquired La Colombe for $900 million in 2023.
• La Colombe's draft latte cans became a significant success in the U.S. market, contributing to their role as pioneers in the third wave coffee movement, with wide distribution across grocery stores.