How I Built This with Guy Raz

KIND bars: Daniel Lubetzky. From peace in the Middle East to a $5 billion snack bar

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Key takeaways

  • Customers primarily buy products for their features and taste, not solely for a social or mission-driven cause.
  • Overly purpose-driven branding can backfire; success depends on delivering an excellent product first and foremost.
  • Control over manufacturing and supply chain is critical for maintaining quality and brand integrity.
  • Retail placement, especially at checkout counters, can significantly boost product visibility and sales.
  • Growth can be hampered by scarcity mentality; focusing on resourcefulness and strategic focus is essential.
  • Entering big-box retailers too early without readiness can be detrimental; patience and discipline are vital.
  • Success in business often involves a combination of hard work, timing, and luck—nothing is purely attributable to genius.
  • Entrepreneurship is deeply tied to personal values and purpose, which can evolve or shift over time, especially when facing challenges.
  • Long-term social impact and peacebuilding are compelling passions that can define a person’s legacy beyond business success.

Summary

Daniel Lubetzky's Background and Influences

This section explores Daniel Lubetzky's early life, including his family's history of surviving the Holocaust and their subsequent resettlement in Mexico. It highlights the impact of his father's resilience and kindness on Daniel's values and decisions, as well as his multicultural upbringing and formative experiences, such as surviving in concentration camps as a child, living in Mexico, and developing a strong sense of social justice from a young age.

Early Entrepreneurial Pursuits and Aspirations

Daniel's early ventures included selling watches, magic tricks, and other small businesses during his youth, driven by a desire to work independently and help fund his studies. Despite a clear ambition to follow in his father's footsteps and start a business with him, Daniel initially pursued a legal career, attending Stanford Law School with hopes of shaping peace in the Middle East through economic cooperation.

The Vision of Peace through Business and Transition to Food Industry

Daniel's passion for resolving the Israeli-Arab conflict led him to establish PeaceWorks, a company aimed at fostering peace by creating business partnerships across borders, using gourmet foods as a conduit. When that venture faced challenges, Daniel pivoted by distributing a snack bar from Australia, which unexpectedly became a revenue source. This initial success encouraged him to create his own snack brand, KIND, focusing on natural ingredients, transparency, and social impact, which eventually sold to Mars for $5 billion.

Building the KIND Brand and Scaling the Business

This section details the strategic, disciplined approach Daniel took to develop the KIND brand, emphasizing focus, product quality, and innovative retail placement—particularly at checkout counters to maximize visibility and sales. It covers his efforts to maintain brand integrity through guardrails and disciplined product line expansion, as well as navigating relationships with distributors and managing growth challenges, including entering Walmart and other major retailers.

Challenges and Lessons in Scaling and Exit Strategy

Daniel reflects on the difficulties of scaling the business, including the risks of early expansion into big-box stores, over-diversification, and the importance of maintaining quality and focus. The discussion also highlights the eventual sale of KIND to Mars, driven by concerns about brand control and global expansion, and the emotional struggle of relinquishing his 'baby.'

Philanthropy and Future Goals: Peace and Building

Despite his success with KIND, Daniel's deeper passion remains peacebuilding in the Middle East. He discusses his ongoing efforts with initiatives like One Voice, which mobilize moderates from both sides to promote peace and understanding. Daniel sees his future work as focused on creating a broader impact through building bridges and fostering cooperation, viewing these endeavors as potentially more meaningful than his entrepreneurial success.

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Show notes

What if the thing you care about most ... might be what’s holding your business back?
Daniel Lubetzky didn’t leave his law job to build a straightforward business. He left it to build a company he believed would support peace in the Middle East. Daniel named it, aptly, PeaceWorks. It partnered with Israeli and Arab businesses across the region to make and sell gourmet foods—together.
But Daniel ran into a big problem: he discovered that lots of people don’t shop for a “cause”. Most people buy things they like—especially when it comes to food.
Soon, Daniel was scrambling to find new revenue streams to support PeaceWorks. When he got the chance to sell an Australian snack bar in the U.S., he jumped on it—and did really well! But when Daniel's ONE big retailer dropped it, profits tanked.
Daniel faced a brutal choice: Walk away… or start over.
What came next was a leap of faith. He decided to create his OWN bar. It was almost completely unlike the competition at the time: It was made of whole nuts, fruits, sea salt, and a little chocolate—all easy to see in a novel, transparent wrapping. 
Daniel named his company KIND, and when he sold it to Mars in 2020, it was valued at $5 billion!
This is a story about why mission alone doesn't sell, how failure forces clarity, and the moment every founder faces when they must decide: Do I keep going ... or do I quit?

What you’ll learn:
Why customers don’t buy your mission—they buy your product
The hidden danger of being “too purpose-driven”
How to pivot without abandoning what matters to you
Why control over manufacturing can make or break your business
The surprising power of retail placement (and why checkout counters changed everything)
How scarcity thinking can limit growth—even when you’re winning
Why saying “yes” to the wrong opportunity (like Walmart too early) can hurt you

Timestamps:
00:03:53 – “It really did shape almost all of my decisions”: How Daniel's father survived the Holocaust and built a new life in Mexico
00:15:15 – A landmark meeting of world leaders—and a dramatic career change
00:17:05 – From a bankrupt sun-dried tomato spread to PeaceWorks
00:22:04 – “They think you're adorable”: Why a mission isn’t enough to grow a business
00:28:34 – Overnight collapse: Finding a big, new revenue stream—then losing it
00:32:07 – The creation of the KIND bar
00:42:56 – “You couldn't say no to Walmart”: Entering big box too early
00:44:48 – The investment that pulled Daniel away from PeaceWorks
00:49:33 – Starbucks and sampling: How KIND became a household name
00:56:55 – An acquisition worth billions
01:00:15 – Daniel's new mission: Builders vs. destroyers

This episode was produced by Alex Cheng with music by Ramtin Arablouei. It was edited by Andrea Bruce with research help from Noor Gill. Our engineers were Maggie Luthar and Robert Rodriguez.

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