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Melissa Butler and Roscoe Spears pitched their vegan lipstick company The Lip Bar on Shark Tank season 6 episode 18 in 2015. They requested $125,000 for 20% equity, valuing their business at $625,000. The Lip Bar offered organic lipsticks made with shea butter, avocado oil, and jojoba oil in bold cocktail-inspired colors.
After hearing their pitch and examining their martini glass logo featuring red lips, Robert Herjavec became the first shark to reject them.
"Roscoe, the brand sends me a mixed message. I'm not sure I want my daughter picking up lipstick with a martini glass and very essential lips on it in red when you're trying to sell the idea of multiple colors. I'm not buying into the brand. I'm out," Herjavec stated.
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Shark Tank pitch ended with a series of "no" votes from all sharks.
Robert Herjavec rejected the lip bar on Shark Tank over branding concerns
Butler and Spears began their Shark Tank presentation by displaying their vibrant lipstick collection to the sharks. Butler explained that traditional lipsticks contained harmful chemicals while offering limited color options. She described how The Lip Bar products solved both problems through organic ingredients and exciting shades.
Each lipstick featured shea butter, avocado oil, and jojoba oil, creating a smooth application experience. Moving to the business aspects, Butler shared that The Lip Bar had generated $126,000 in total sales since launching in October 2013, with $8,000 coming in the month before filming.
She mentioned their failed Indiegogo campaign that raised $13,503 of a $27,000 goal, originally intended to fund a mobile sales truck. Despite this setback, they had built steady online sales through their website, which featured a "lipshots" page showing how colors appeared when applied.
Butler then revealed their production costs of $3 per lipstick against a $20 retail price. This 85% profit margin visibly impressed several sharks, particularly Lori, who noted the strong economics typical of successful cosmetics businesses. Butler explained she handcrafted each lipstick, maintaining quality control while keeping production costs low.
Shark’s reactions
Robert Herjavec examined The Lip Bar's packaging closely before becoming the first shark to withdraw. Shark Tank investor’s concerns focused on branding inconsistency rather than product quality. Herjavec specifically mentioned the disconnect between promoting diverse color options while using singular red lips imagery on their martini glass logo.
Following Robert's exit, the remaining sharks identified different concerns that led to their unanimous rejection. Daymond John questioned The Lip Bar's innovation potential in the crowded beauty market. Mark Cuban acknowledged the confidence expressed through their color selection but ultimately agreed with Robert's branding concerns.
Lori Greiner raised practical issues about online cosmetics sales, noting screen color variations make accurate shade selection difficult for customers. Kevin O'Leary delivered the final rejection with a dismissive comment about the cosmetics industry as a whole.
Post-rejection story
After leaving without a deal, Butler took decisive action. As per Shark Tank Blog, She directly cold-called a Target buyer, successfully pitching The Lip Bar products. This approach led to a 2016 launch on Target's website, followed by in-store placement beginning in February 2018.
The Lip Bar attracted substantial investment despite the sharks' rejection. In July 2018, Unilever's New Voices Fund, which focuses on businesses owned by women of color, invested an undisclosed amount in the company. By October 2022, The Lip Bar secured $6.7 million in seed funding to accelerate growth plans and expand their product line beyond lipsticks.
The company's retail footprint grew considerably following their Shark Tank appearance. The company also established a flagship store in downtown Detroit, demonstrating commitment to their home city.
Fans can watch new episodes of Shark Tank on ABC network.
