In a compelling pitch during Season 10, Episode 5 of Shark Tank, aired on November 18, 2018, Kate Field successfully secured a significant investment offer of $350,000 for her venture, The Kombucha Shop. What began with a modest investment of just $800 experienced tremendous growth, amassing lifetime sales of approximately $3.2 million at that time. Field projected an impressive $1.7 million in annual revenue primarily through her home brewing kits, enabling customers to brew kombucha at a mere 25 cents per bottle, which typically retail between $3 and $5.
Field’s Pitch Captivates Investors
Kate Field’s presentation was remarkable, featuring a striking visual demonstration of the kombucha brewing process using a large jar and a SCOBY culture, a crucial ingredient in the fermentation of the beverage. Her aim was straightforward: to simplify home brewing for enthusiasts through user-friendly starter kits that included all necessary equipment and specially curated tea blends.
She guided the Sharks through her extensive product offerings, reinforcing her commitment to quality and education for her customers. Field showcased her impressive growth trajectory, catching the Sharks’ attention with her exceptional sales figures derived from organic word-of-mouth referrals and repeat business, indicating a strong product-market fit.
“You’re a dream entrepreneur… You’re phenomenal at the big picture, but the thing you’re not utilizing is that gorgeous face of yours. Are you aware that you’re probably the healthiest-looking person I’ve ever seen in my entire life? You’re the poster child for this. If I could look as healthy as you, I would swallow this horrible stuff every day of my life,”stated Barbara Corcoran.
Investor Insights and Offers
Following her enthusiastic endorsement, Barbara Corcoran, along with guest investor Sara Blakely, made a collaborative offer consisting of $200,000 in cash and a $150,000 credit line in exchange for a 10% equity stake. Despite the allure of their proposal, reports indicate that the deal did not finalize post-show.
Kevin O’Leary also made a competitive offer, proposing $350,000 for a larger 20% equity share, citing the company’s impressive sales metrics. However, Field seemed less inclined to accept a deal that demanded a higher equity percentage.
Notably, Lori Greiner opted out of negotiations, explaining her lack of personal experience with kombucha, which hindered her ability to provide added value to the investment. As Mark Cuban deliberated, Field promptly accepted the joint offer from Corcoran and Blakely, aligning with her original investment request while retaining her desired equity stake.
Rapid Growth Following Shark Tank Appearance
After the episode aired, The Kombucha Shop saw an extraordinary surge in demand, receiving over 15,000 new orders shortly thereafter, as noted by CNBC. This significant uptick enabled the company to establish a foothold in Whole Foods stores throughout the Midwest, marking a major leap into a crucial natural foods market. Although the partnership with Corcoran and Blakely didn’t materialize in the anticipated timeline, The Kombucha Shop continued to expand successfully.
In a pivotal development, Habib Bakshi acquired The Kombucha Shop in January 2021, in a multi-million dollar deal. Bakshi, who is known for managing more than $1.8 billion in digital marketing revenu, introduced valuable e-commerce strategies to the brand.
Currently, under Bakshi’s ownership, The Kombucha Shop maintains an impressive annual revenue of $2 million. The company remains dedicated to its mission of making home brewing accessible while strategically growing its market presence through innovative digital sales channels.
For fans of entrepreneurism and innovation, new episodes of Shark Tank can be caught on the ABC network.