Pitch Introduction
Kobee’s Lip Balm Shark Tank pitch showcased an impressive journey from college dorm room to multi-million dollar beauty brand. Founder Kobe Harris appeared on Shark Tank Season 16 seeking investment to scale his eco-conscious personal care business. The Kobee’s Co. pitch highlighted rapid growth and innovative sustainable practices that caught the attention of all four sharks who heard his presentation. This analysis breaks down every aspect of the Kobee’s Lip Balm Shark Tank appearance, from the initial pitch to the final outcome.
Business Overview
Product/Service: Kobee’s Co. offers 100% natural, handmade, and sustainable lip balms with compostable packaging. The brand has expanded beyond lip balms to include lotion bars, lip scrubs, cuticle butter, and hand salves. All products use only four simple ingredients: beeswax, coconut oil, sunflower seed oil, and mango butter. Problem It Solves: The company addresses the lack of truly clean, eco-friendly personal care products in the market. Many conventional lip balms contain questionable ingredients and non-recyclable packaging. Target Market: Environmentally conscious consumers, particularly Gen Z and millennials who prioritize sustainability and clean beauty products. Unique Selling Proposition (USP): Kobee’s Co. stands out with its commitment to complete transparency, sustainability, and product simplicity. The brand uses only edible-grade ingredients and compostable packaging, making it one of the cleanest options in the personal care market. (also create table with there company details)
| Company Detail | Information |
|---|---|
| Company Name | Kobee’s Co. |
| Founded | 2019 |
| Industry | Beauty/Personal Care |
| Location | Chicago, Illinois |
| Founder | Kobe Harris |
| Website | kobeesco.com |
About Founder’s
Kobe Harris is a young entrepreneur who started Kobee’s Co. while he was a freshman in college. Originally pursuing a pre-med track with aspirations to become a doctor, Harris discovered his passion for sustainable beauty products during a research project with his sustainability professor. With just $200 from his mother, he began formulating natural lip balms in his dorm room. Harris worked as a lifeguard during the summer to fund his initial product development phase. His entrepreneurial instincts led him to exit from his college classes to focus full-time on building his business. This bold decision was supported by his mother who had also started several businesses herself after college. Harris leveraged his Gen Z understanding of social media marketing to rapidly scale the business, learning digital advertising techniques that drove significant growth also add some bullet points below.
- Started business at age 18 as college freshman
- Originally planned to become a doctor
- Received initial $200 investment from his mother
- Formulated products in dorm room with hot plate
- Worked as lifeguard to fund early operations
- Dropped out of college to focus on business full-time
- Self-taught social media marketing expert
Shark’s and Founder’s QnA
Q: What is Kobe’s Co., and what products do you offer?
A: Kobe’s Co. creates 100% natural, handmade, and sustainable lip balms made from four simple ingredients: beeswax, coconut oil, sunflower seed oil, and mango butter. The product line has expanded to include lotion bars, lip scrubs, cuticle butter, and hand salves.
Q: What is Kobe Harris seeking from the Sharks?
A: Kobe Harris is seeking $300,000 for 6% equity in Kobe’s Co.
Q: Why did you start Kobe’s Co.?
A: Kobe started the company as a freshman in college after researching packaging and bees with a sustainability professor. He wanted to create all-natural lip balm and personal care products, inspired by a desire to offer clean, transparent ingredients.
Q: How did you fund the initial development of Kobe’s Co.?
A: Kobe’s mother gave him $200 to purchase raw ingredients like beeswax, butters, and oils from Amazon. He spent the summer formulating products.
Q: How did you begin selling your products?
A: Kobe worked as a lifeguard and made lip balms on a hot plate in his bedroom. He handed them out to people at the pool, which helped him gain initial traction.
Q: What are your sales figures?
A: In the first year, Kobe’s Co. made $30,000. The second year, sales reached $200,000. Last year, the company earned $864,000, and this year, it has already generated over $1.5 million, with a projected year-end total of $3.5–4 million.
Q: What is your net profit projection for this year?
A: Kobe expects to net approximately $700,000–$800,000 this year.
Q: How do you sell your products?
A: Sales are primarily online through a direct-to-consumer website and Amazon.
Q: What is the cost to acquire a customer, and what is the average order value?
A: The customer acquisition cost is $14–$15, and the average order value is $32, with the main SKU being a 6-to-9-pack of lip balms.
Q: What is the cost and selling price of your lip balm?
A: Each lip balm costs $0.26 to make and sells for $5. Lip balms account for 75% of sales, with other personal care products making up the remaining 25%.
Q: What is your return on ad spend (ROAS)?
A: The return on ad spend is approximately 2.5 to 3.
Q: How do you market your products?
A: Kobe leverages social media, particularly Facebook ads and TikTok, to drive sales, capitalizing on his understanding of social media as a Gen Z entrepreneur.
Q: Why is your lip balm packaging unique?
A: To be compostable, the lip balm packaging is shorter and wider than traditional tubes, requiring users to push the product up with their finger since there’s no twist function.
Q: What challenges do you face in scaling the business?
A: Kobe mentioned that selling a $5 SKU online is challenging without high volume. He believes retail distribution, particularly at checkout counters and point-of-purchase displays, could help scale the business.
Q: What do you need from an investor?
A: Kobe needs guidance and help with distribution, particularly to secure retail shelf space at point-of-sale locations.
Q: What offers did the Sharks make?
A: One Shark offered $300,000 for 20% equity, valuing the company at $1.5 million. Another Shark expressed interest but also requested 20% equity, emphasizing retail distribution and marketing scale.
Q: Why did some Sharks pass on the deal?
A: Several Sharks passed because they felt the lip balm market was too competitive, not their area of expertise, or they couldn’t add sufficient value to Kobe’s business. One Shark admired Kobe but didn’t want to invest in the lip balm industry specifically.
Q: How did Kobe respond to the offers?
A: Kobe countered the 20% equity offer, suggesting 10% or a compromise at 15%. He ultimately declined the 20% offer, arguing he could achieve similar growth with a loan while retaining more equity.
Q: What was the outcome of the pitch?
A: Kobe did not accept the offers and left without a deal, though the Sharks expressed admiration for his story and achievements.
Key Stats & Financials
Kobee’s Co. demonstrated impressive financial performance during the Shark Tank pitch, showing rapid revenue growth and strong profitability metrics. The founder provided detailed financial information that impressed all four sharks who heard his presentation. Despite turning down investment offers, Kobee’s Co. continued to show robust growth trajectory with strong unit economics and customer acquisition metrics.
- Sales: Current revenue figures at time of pitch
- Margins: Profit margins and cost structure
- Valuation: What the entrepreneur valued their company at
- Investment Request: Amount sought and equity offered
- Use of Funds: How the entrepreneur planned to use the investment
| Financial Metric | Amount |
|---|---|
| Annual Revenue (Projected) | $3.5-4 Million |
| Net Profit | $700,000-800,000 |
| Cost = $0.26 | |
| Unit Selling Price | $5.00 |
| Average Order Value | $32.00 |
| Customer Acquisition Cost | $14-15 |
Business Potential and TAM
The lip balm market represents a significant opportunity with substantial growth potential. According to industry research, the global lip product market was estimated at $4.3 billion in 2025 and projected to expand to $7.1 billion by 2033. Kobee’s Co. positioned itself in the premium, clean beauty segment which is experiencing rapid growth as consumers become more conscious about product ingredients and environmental impact. The company’s focus on sustainability and transparency aligns with growing consumer trends toward ethical purchasing decisions. This section details the Total Addressable Market and identifies ideal customer demographics for Kobee’s Co. then create a table for Ideal Target Audience & Demographics
- Total Addressable Market: $4.3 billion in 2025
- Projected Market Growth: $7.1 billion by 2033
- Clean Beauty Segment Growth: Outpacing overall market
- Sustainability Focus: Key differentiator in crowded market
Kobee’s: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Age Group | 18-35 years old |
| Gender | Primarily female, growing male segment |
| Income Level | Middle to upper-middle class |
| Geographic Focus | Urban and suburban areas |
| Lifestyle | Eco-conscious, health-focused consumers |
| Purchasing Behavior | Online shoppers, brand loyal |
Marketing and Distribution Strategy
Kobee’s Co. leveraged digital marketing strategies to achieve rapid growth, primarily through social media platforms popular with Gen Z consumers. The founder’s expertise in Facebook and TikTok advertising contributed significantly to the brand’s success. With a return on ad spend of 2.5-3, the company demonstrated efficient customer acquisition through digital channels. Distribution strategy focused on direct-to-consumer sales through the company website and Amazon marketplace. The founder expressed interest in expanding into retail channels, particularly checkout counters and point-of-purchase locations in big box retailers. Future business roadmap included scaling social media marketing efforts and exploring retail partnerships while maintaining the brand’s commitment to sustainability and product quality.
- Social Media Marketing: Facebook and TikTok advertising focus
- Direct-to-Consumer Sales: Primary through website and Amazon
- Retail Expansion: Target checkout counters and big box stores
- Return on Ad Spend: 2.5-3 ratio efficiency
Kobee’s Co. Deal Outcome
Kobee’s Co. did not secure a deal on Shark Tank despite impressive financial performance and business metrics. All four sharks who heard the pitch – Mark Cuban, Lori Greiner, Daymond John, and Kevin O’Leary – declined to invest in the company. Kevin O’Leary made an offer of $300,000 for 20% equity, which the founder countered with a request for 10% equity. O’Leary then proposed 15% as a compromise, but founder Kobe Harris ultimately declined the offer. The decision was based on Harris’s assessment that he could achieve better valuation through continued organic growth and self-funding rather than accepting significant equity dilution at that stage.
| Shark | Offer Details |
|---|---|
| Kevin O’Leary | $300,000 for 20% equity |
| Kevin O’Leary Counter | $300,000 for 10% equity |
| Kevin O’Leary Compromise | $300,000 for 15% equity |
| Final Outcome | No deal reached |
Kobee’s Co. Post-Show Update
Following the Shark Tank appearance, Kobee’s Co. continued to experience significant growth and brand expansion. The company reported projected annual revenue of nearly $4 million and maintained strong profitability with net earnings of $700,000-800,000. The brand expanded its product line and social media presence, with active accounts on Instagram and TikTok featuring limited edition scents and seasonal collections. In 2025, the company launched “The Hive Project,” an environmental initiative supporting beekeeping associations and waterway cleanup organizations. The brand introduced a lip balm stick with 15 SPF protection, offering some measure of sun protection while maintaining its commitment to clean ingredients. Despite not securing investment on Shark Tank, Kobee’s Co. demonstrated that organic growth and strategic marketing could sustain rapid business expansion.
Business Analysis & Lessons
The Kobee’s Co. Shark Tank pitch provides several important business lessons for entrepreneurs, particularly young founders entering competitive markets. The case demonstrates the importance of understanding your business value and being willing to walk away from unfavorable terms. Founder Kobe Harris showed confidence in his company’s trajectory and refused to accept significant equity dilution when he believed the terms were not in the company’s best interest. The pitch also highlights the challenges faced by sustainable and clean beauty brands in highly competitive markets, where differentiation through product quality and brand values becomes crucial. Additionally, the case illustrates how Gen Z entrepreneurs can leverage digital marketing expertise to achieve rapid growth without traditional venture capital funding.
- Know your business value and don’t accept unfavorable terms
- Differentiation through sustainability and clean ingredients is crucial
- Digital marketing expertise can drive rapid growth without VC funding
- Confidence in your business trajectory enables better negotiation
Conclusion
Kobee’s Co. Shark Tank pitch represents a compelling example of entrepreneurial success without traditional investment. Founder Kobe Harris demonstrated remarkable business acumen by turning down investment offers that he felt undervalued his company, ultimately proving that strong fundamentals, effective marketing, and product quality could sustain growth. The brand’s commitment to sustainability and clean ingredients positioned it well in the growing clean beauty market. Will you consider supporting eco-friendly brands like Kobee’s Co. in your purchasing decisions? What aspects of their business model do you find most impressive?