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It takes a lot of nerve to stand on national television, look a billionaire investor in the eye, and turn down hundreds of thousands of dollars. But that is exactly what Gen Z entrepreneur Kobe Harris did.
When he pitched his eco-friendly lip balm brand on Season 16 of Shark Tank, he brought incredible sales numbers, insane profit margins, and a valuation that made the Sharks sweat. He wanted to grow his business, but he absolutely refused to sell his soul, or a massive chunk of his equity, to do it.
By walking away from Mr. Wonderful without a deal, Harris joined an elite club of founders who bet entirely on themselves. But in the ruthless world of retail cosmetics, did that massive gamble actually pay off?
What is Kobee's Co.?
Kobee’s Co. is a direct-to-consumer personal care brand that specializes in all-natural, sustainably packaged skincare products. The brand built its empire on a single, highly effective hero product: a four-ingredient lip balm.
In a market flooded with chemical-heavy cosmetics packaged in single-use plastics, Kobee’s takes the opposite approach. The flagship lip balms are formulated with just four ingredients you can actually pronounce: beeswax, coconut oil, sunflower oil, and mango butter. During his pitch, Harris joked that his ingredients were so clean you could literally eat them.
Beyond the clean ingredients, the company's major unique selling proposition is its packaging. Kobee's lip balms are housed in 100% biodegradable, compostable paper tubes.
Instead of a traditional plastic twist mechanism, users simply push the bottom of the tube up to access the balm. To accommodate this eco-friendly design, the tubes are intentionally shorter and wider than standard chapsticks, which actually allows them to hold more product.
| Product Overview | Details |
|---|---|
| Industry | Cosmetics / Personal Care |
| Founded Year | 2021 |
| Core Product | All-Natural Beeswax Lip Balm |
| Target Audience | Eco-conscious Gen Z and Millennials |
| Retail Price | $5.00 per balm |
Who is the Founder of Kobee's Co.?
The brains behind the beeswax is Kobe Harris. Like many of the best startup stories, his journey did not begin in a corporate boardroom. It started in a cramped freshman dorm room at Loyola University Chicago.
Originally, Harris was on a pre-med track. He had big dreams of becoming a doctor, but his environment quickly inspired a massive pivot. Loyola University places a heavy emphasis on environmental sustainability, and being surrounded by that culture sparked an idea.
Harris realized that the everyday personal care products people use, like lip balm, were terrible for the environment, packed with synthetic ingredients, and housed in plastic that would sit in landfills for centuries.
He decided to create a better alternative. Instead of studying for medical exams, Harris spent over a year researching ingredients and testing formulas. He spent seven to eight months just perfecting the consistency of the beeswax lip balm, making sure it was hydrating without being greasy. He sourced fresh ingredients directly from Amazon to build his first batches.
After fine-tuning the recipe and securing the compostable paper packaging, Kobee’s Co. was officially born. Harris eventually dropped out of college to pursue the business full-time, a massive risk that would soon be tested on the biggest business stage in America.
Kobee's Co. Shark Tank Journey & Pitch
Kobe Harris walked into the Shark Tank during Season 16, Episode 3 (which aired in late 2024), armed with extreme confidence and a basket full of lip balms. He was seeking a $300,000 investment in exchange for 6% equity, giving his young company a towering valuation of $5 million.
The Sharks immediately loved his energy. Harris was witty, charming, and knew exactly how to play the room. He handed out samples of his various lip balm flavors, and the Sharks were instantly impressed by the smell, the texture, and the clever, plastic-free push-up packaging.
But as any Shark Tank fan knows, a good product is only half the battle. The Sharks want to know the numbers. When Harris opened his books, the jaws in the room dropped.
He revealed his sales trajectory:
- Year 1: $30,000
- Year 2: $200,000
- Year 3: $864,000
- Year-to-Date (At filming): $1.5 million, with projections to hit $3.5 to $4 million by the end of the year.
The room was stunned. Harris explained that he achieved these numbers by mastering Facebook Ads and TikTok algorithms, bringing his customer acquisition cost down to about $14, while his average order value hovered around $32.
Even better, Daymond John asked about the manufacturing costs. Harris coolly revealed that it costs him just 26 cents to make a single tube of lip balm, which he sells for $5.00.
Despite the incredible math, the Sharks started to drop out. Guest Shark Kendra Scott loved the story but felt the business wasn't in her wheelhouse. Lori Greiner thought the retail space for lip balms was way too crowded.
Mark Cuban praised Harris's hustle but didn't feel he could add enough value to justify an investment. Daymond John agreed, stating he wanted to invest in "Kobe the person" but not necessarily the lip balm industry.
That left Kevin O'Leary. Mr. Wonderful saw the massive cash flow and wanted in, but he absolutely hated the $5 million valuation. He made an aggressive offer, leading to a tense standoff.
| Pitch & Offers | Details |
|---|---|
| Initial Ask & Valuation | $300,000 for 6% ($5M Valuation) |
| Sharks in the Room | Mark Cuban, Lori Greiner, Kevin O'Leary, Daymond John, Kendra Scott |
| Kevin O'Leary's Offer | $300,000 for 20% equity ($1.5M Valuation) |
| Founder's Counter Offer | $300,000 for 10% equity |
| Final Deal | No Deal. Kevin countered at 15%, but Harris walked away. |
Harris realized that giving up 15% to 20% of his company when it was already highly profitable simply didn't make sense. He thanked the Sharks and walked out of the Tank with his equity fully intact.
What Happened to Kobee's Co. After Shark Tank?
Walking away from a Shark is always a massive risk, but for Kobee's, it was clearly the right move. The "Shark Tank Effect" hit the company hard. The night the episode aired, the brand saw a massive surge in website traffic and sales. The national television exposure introduced the clean-beauty brand to millions of consumers who were actively looking to ditch plastic packaging.
Harris took the momentum from the show and poured it straight back into his marketing engine. Because he didn't have to surrender any equity or control to a Shark, he kept full creative direction over the brand. He doubled down on his social media strategy, specifically on TikTok and YouTube Shorts.
The brand's TikTok account exploded, quickly growing past 223,000 followers. Harris and his team created viral video series, such as "Will it flavor?", where they attempted to turn bizarre everyday food items into lip balm flavors.
They also posted behind-the-scenes content showing the manufacturing process, the warehouse expansion, and the daily grind of running a startup. This transparent, highly engaging content built a massive community of loyal customers who felt directly connected to Harris and his journey.
Is Kobee's Co. Still in Business?
Yes, absolutely. Kobee’s Co. is not just surviving; it is thriving as a standalone, highly profitable direct-to-consumer powerhouse.
The company has successfully outgrown its garage roots and operates out of a dedicated warehouse facility. While the original beeswax lip balm still accounts for roughly 75% of their total sales, Harris has aggressively expanded the product line to capture more of the personal care market.
A visit to the Kobee's website reveals a massive catalog of products. They now offer an SPF 15 lip balm for sun protection, luxurious overnight lip masks, exfoliating lip scrubs, and heavy-duty hand salves. They have also moved into body care with solid lotion bars and cuticle butter.
The brand continues to release limited-edition seasonal flavors to keep their audience engaged, rolling out pumpkin spice and gingerbread balms in the fall, and tropical Mai Tai punches in the summer. They also sell product bundles, like the $20 "Island Getaway 4 Pack," which encourages customers to buy in bulk and helps keep that average order value incredibly high.
What is the Valuation & Net Worth of Kobee's Co.?
Because Kobee's Co. remains a privately held company with no outside Shark Tank investors, exact internal profit numbers are closely guarded. However, based on the founder's own financial disclosures and current market analysis, we can paint a very clear picture of the company's immense wealth.
During the 2024 pitch, Harris projected finishing the year with nearly $4 million in gross sales. Given the brand's post-show momentum, expanded product catalog, and viral TikTok presence, it is highly likely the company has surpassed that $4 million annual run rate.
Furthermore, because the product only costs 26 cents to manufacture and sells for $5.00, the company enjoys incredibly fat margins that most retail brands can only dream of. Business analysts estimate the net worth and overall valuation of Kobee's Co. to sit around $7.3 million to $8 million.
By trusting his gut and turning down Kevin O'Leary's lowball $1.5 million valuation offer, Kobe Harris saved himself millions of dollars in future equity payouts.
Where to Buy Kobee's Lip Balm?
Despite Kevin O'Leary's warnings that the brand needed to be in big-box retail stores to survive, Kobee's has proven that the direct-to-consumer model is still highly lucrative.
The best place to buy Kobee's products is directly through their official website (kobeesco.com). Purchasing directly from the site gives customers access to the full range of seasonal flavors, special bundle discounts, and brand merchandise like hoodies and t-shirts.
Additionally, for customers who prefer lightning-fast shipping, Kobee's maintains a very strong presence on Amazon. This dual-channel approach allows them to capture impulse buyers on Amazon while retaining their core, loyal community on their main website.
Are Kobee's Lip Balm Reviews Good?
The customer feedback for Kobee's remains overwhelmingly positive, though it does spark some debate among skincare purists.
On the brand's website and across social media, customers rave about the texture of the balm. Many reviews highlight how smoothly the product applies and how long the hydration lasts compared to cheap, petroleum-based chapsticks.
The eco-friendly crowd is heavily invested in the brand, with thousands of reviews specifically praising the compostable cardboard tubes as a massive step forward for the industry.
However, if you dig into Reddit skincare communities, you will find some critical discussions. A few users point out that while the ingredients are "natural," items like sunflower oil are still highly processed. Others have noted that learning to use the push-up cardboard tube takes a bit of practice compared to a traditional plastic twist dial.
But overall, the market has spoken with its wallet. The massive repeat customer rate and millions of dollars in sales prove that Kobe Harris created a winning formula.
Madhav Kushwaha
SEO Analyst & Digital Marketer
Madhav analyzes complex business pitches and provides high-level updates for tech startups and reality television ventures. Specializing in advanced organic search strategies, he brings clarity to the rapidly evolving digital landscape.