In a remarkable episode of Shark Tank, aired on March 7, 2025, Daniel Lubetzky, the visionary founder of KIND Snacks, made headlines by investing $50,000 in Kiid Coffee. This innovative caffeine-free coffee brand was developed by young entrepreneur Ethan Sanborn, age eight, and his father, David, hailing from Alpharetta, Georgia. As a result of this partnership, Lubetzky acquired a 20% equity stake in the company.
The investment agreement includes a unique clause that offers a 5% equity return when David transitions to full-time operations. Since its launch in April 2024, Kiid Coffee has reported impressive sales figures, amassing $150,000 from sales through Amazon and retail outlets, as highlighted by CNBC Make It. This innovative product features essential nutrients such as prebiotic fiber, magnesium, vitamin D, and iron, all with lower caffeine levels than a standard hot chocolate.
Innovative Pitch Lands Daniel Lubetzky’s Investment
The idea for Kiid Coffee was born during a challenging time in Ethan’s life, as he was recovering from a second leg injury in 2023. According to reports from Georgia Tech News, the Sanborns aimed to provide their son with a nutritious alternative to sugary drinks. The moment they discovered Ethan relishing his father’s coffee with milk ignited the spark for this innovative health-focused beverage.
With David holding a polymer and fiber engineering degree and Lauren bringing in management skills, they combined their expertise to successfully create Kiid Coffee. The initial development process involved extensive testing with local volunteers. The Sanborns produced sample blends in plastic bags, allowing their young sons to serve as the primary taste testers.
David brings valuable experience from previous entrepreneurial ventures, including the impressive sale of a pet food flavoring business in 2020, as reported by CNBC. After testing over 100 variations of the coffee blend, they focused on achieving both taste and nutritional balance specifically tailored for children. Currently, the startup employs three part-time workers while David manages his separate employment elsewhere.
Kiid Coffee is produced using an environmentally friendly water-based decaffeination process, ensuring compliance with organic certification standards. The resulting powdered mix seamlessly combines with milk, yielding a delicious, caffeine-light beverage less potent than traditional sodas. Notably, their innovative manufacturing methods retain valuable antioxidants while eliminating 99.9% of caffeine content.
David has implemented stringent research protocols, adhering to FDA guidelines for children’s dietary supplements. The family maintains direct oversight of quality control, partnering with certified manufacturers to ensure product integrity. Their production processes yield shelf-stable items that do not require refrigeration prior to opening.
Currently, Kiid Coffee is distributed to local retailers throughout Georgia, with ambitious plans for expansion as sales continue to thrive. The company maintains rigorously controlled allergen protocols during manufacturing, leading to consistent monthly growth since its launch in April 2024. Direct-to-consumer sales channels represent a remarkable 85% of overall revenue, demonstrating strong performance.
The Sanborns have ingeniously installed a digital sales tracker at home, enabling real-time monitoring of transactions and serving as an educational tool for their children. Daily operations include feedback sessions that last approximately 30 minutes between David and Ethan. The company actively engages with its audience on social media, with its TikTok account nearing 10,000 followers, according to CNBC Make It.
Ethan directly participates in crafting engaging, kid-friendly marketing content. The business comprises three part-time staff members who oversee order fulfillment and customer service. Kiid Coffee has successfully secured retail placements in various coffee shops throughout the Atlanta metropolitan area, offering both packaged products and ready-made servings.
An Overview of Daniel Lubetzky
Born in Mexico City, Daniel Lubetzky has transformed the snack industry by growing KIND Snacks into a multi-billion dollar company before its acquisition by Mars in 2020, as reported by Fortune. A proud graduate of Stanford Law School, he laid the groundwork for his entrepreneurial journey through PeaceWorks, fostering collaboration across conflict-ridden regions.
Lubetzky’s leadership approach seamlessly blends creative vision with operational execution, demonstrated by KIND’s journey from being a local offering to a nationwide brand. He continues to hold a minority stake in KIND and runs Camino Partners, an investment firm that manages various ventures featured on Shark Tank. His business philosophy underscores the balance of societal impact with market success, notably illustrated by his employee equity program that yielded substantial returns during KIND’s sale.
Catch up with the latest episodes of Shark Tank Season 16, airing on the ABC network, for more exciting entrepreneurial stories.