Sip Herbals: Here's What Happened After Shark Tank (2024)

Drink Coffee and Tea

ByKhyati Dand

Sip Herbals' founder Orleatha Smith struggled with a common problem many: She liked her morning coffee but not what came after drinking it. Caffeine can trigger many side effects, including increased heart rate, anxiety, and edginess (via Mayo Clinic). Informally known as caffeine jitters, these symptomsaren't just longstanding myths about coffeebut are often the price to pay for a morning perk. And so Sip Herbals aimed to provide an alternative to these jitters when the company appeared on Season 15, Episode 22 of "Shark Tank" in early May 2024.

Since childhood, Smith had grown up with a holistic approach to food after a severe case of eczema led to her spending a month at the Mayo Clinic. Though she always had an understanding of the nourishing power of food, the idea for Sip Herbals came to Smithafter she was diagnosed with an autoimmune disease. The condition meant that she had to watch everything she ate or drank — including coffee.

"I had been dealing with anxiety, jitters[,] and stomach trouble every day and figured out that it was caffeine causing it," she said to the Montgomery Bay Herb Co. But Smith also had a fondness for coffee and wasn't willing to give it up, so she came up with a solution. Using her background in biology and the software industry, Smith launched Sip Herbals — a line of prebiotic, caffeine-free coffee substitutes made from a blend of herbs and plants that provides everything many love about coffee sans drawbacks.

What happened to Sip Herbals on Shark Tank?

Armed with her 'faux joes,' Orleatha Smith walked into "Shark Tank"seeking a $100,000 investment in exchange for a 10% stake in Sip Herbals.For most of the segment, it looked like Smith had everything she needed to walk away with a deal.

Sip Herbals' blends use roasted carob, dandelion, and chicory as its base — an herb that's knownto taste much like coffee.In fact,chicory has a longstanding history in Louisiana where Smith's family comes from. It rose in popularity during the Civil War when New Orleanians turned towards the coffee-like herb to make up for the dwindling supplies of beans. Chicory aside, Smith claimed that Sip Herbals' brews have a full-bodied mouthfeel that one would expect from coffee and that it also gave the satisfaction of popular coffeehouse flavors with variants such ascinnamon roll and peppermint mocha.

More importantly, Sip Herbals had the numbers to back it up. A bag of 30 servings cost just under $3.50 to make and retailed for $19 to $24. With substantial profit margins, the company was on track to make $250,000 — a fact that earned applause fromMark Cuban (who is set to leave "Shark Tank" after this season). However, cutting out traditional coffee from their daily routines was not something all the Sharks wanted to do, and the general consensus across the panel was that Sip Herbalssimplywasn't an investable business. Ultimately, Smith left the Tank without any offers.

Sip Herbals after Shark Tank and what's next

Appearing on "Shark Tank" has its perks beyond just securing an investment: It also provides small-scale businesses with valuable publicity and national exposure. And by the looks of it, Sip Herbals is making the most of it. The officialwebsite currently lists an "As Seen on 'Shark Tank' Sample Bundle" at a discounted price with the same three flavors the Sharks tasted on the show — signature roast, salted maple blondie, and dirty chai.

While Sip Herbals mostly sells its blends via its website and Amazon, founder Orleatha Smith mentioned in the Tank that the company was focused on expanding its retail presence. Sip Herbals had orders from Lazy Acres Market and New Leaf Market that it hoped to fund with the investment. Future plans also include taking Sip Herbals to chains like Plum Marketand Erewhon(one of America's most expensive grocery chains),and eventually to coffee shops where people can order the prebiotic blends right alongside caffeinated javas.

Though Smith walked away without a deal,the entrepreneur might just find another way to scale Sip Herbals. After all, she raised money on Kickstarter in the past and grew the company exponentially with that initial $7,000 investment. Besides, the global coffee substitute industry is valued at $2.7 billion in 2024 and is predicted to nearly double by 2031 according to DataM Intelligence. So, if all goes well, Sip Herbals might just make a place for itself in the growing industry.

Recommended

Sip Herbals: Here's What Happened After Shark Tank (2024)

FAQs

What happened to Sip on Shark Tank? ›

Orleatha Smith entered the Shark Tank seeking $100,000 for a 10% in her business but left without a deal. In terms of a Sip Herbals update, the company is still in business has added new flavors, and received a nice boost in sales after airing.

What is the most successful product on Shark Tank that was turned down? ›

Ring. One of the most notorious (and successful) Shark Tank rejects started as a video doorbell name Doorbot. After a famously tepid reaction from the sharks, Amazon later bought the company for a deal worth nearly $1 billion.

What is most successful product sold from Shark Tank? ›

With $1.3 billion in lifetime sales, Bombas has generated the highest sales on "Shark Tank". The company, which sells comfort socks and T-shirts, donates one item per item sold to help the homeless. With $200,000 in funding for a 17.5% stake, Daymond John, founder of apparel company FUBU, invested in the company.

Did Sip Herbals get a deal on Shark Tank? ›

However, cutting out traditional coffee from their daily routines was not something all the Sharks wanted to do, and the general consensus across the panel was that Sip Herbals simply wasn't an investable business. Ultimately, Smith left the Tank without any offers.

Who is the owner of Sip Herbals? ›

Sip Herbals was founded in 2020 by two women, Orleatha Smith and Kelly Raulerson. The two founders were looking for a healthy and delicious alternative to coffee that wouldn't irritate their sensitive systems.

Which Shark Tank business failed? ›

What Shark Tank deals have failed? ToyGaroo, ShowNo Towels, Sweet Ballz, Body Jac, CATEapp, Breathometer and You Smell Soap are some of the companies that went through Shark Tank and later on shut down.

How much did Lori make from Shark Tank? ›

Lori Greiner earns money from various professional pursuits.

As a key figure on the show, Greiner reportedly earns around $50,000 per episode. Greiner's wealth primarily stems from her successful business, For Your Ease Only, where she has over 700 products and holds 120 patents globally.

What was the worst Shark Tank pitch? ›

The 12 Worst 'Shark Tank' Pitches Of All Time
  • Jason Woods pitches the Kymera jet-propelled boogie board. ...
  • Mark Cuban calls Woods a "wantrepreneur," someone who's got ideas but not a shred of business acumen. ...
  • Brothers Richard and Albert Amini pitch a social media app for doctors.

Are Shark Tank investors in loss? ›

Aman Gupta (BoAt) ↳ Revenue - 3,377 crore ↳ Lose -129 crore So all these shark companies have reported losses in the financial year 2022-23, But some sharks are making profits: 1.

Who owns Shark Tank? ›

“Shark Tank” is produced by MGM Television in association with Sony Pictures Television. Executive producers include Mark Burnett, Clay Newbill, Yun Lingner, Max Swedlow, Phil Gurin and Brandon Wallace alongside Cuban, Corcoran, Greiner, Herjavec, John and O'Leary. Season 16 debuts on Oct. 18.

Who left Shark Tank and why? ›

I was just myself,” Cuban said in an interview in June on the show's set as he reflected on his tenure. He said he's leaving the show because he wanted to spend more time with family and focus on building his prescription drug company. The next season will be his last as a regular shark.

Why do Shark Tank deals never close? ›

Usually, it's the Founder's fault. 90% of the deals fall through because the Founders believed the conditions weren't good for their business even though they took the deal on TV. Then, some deals have taken so long to negotiate that the episode has already aired.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Aracelis Kilback

Last Updated:

Views: 6147

Rating: 4.3 / 5 (44 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Aracelis Kilback

Birthday: 1994-11-22

Address: Apt. 895 30151 Green Plain, Lake Mariela, RI 98141

Phone: +5992291857476

Job: Legal Officer

Hobby: LARPing, role-playing games, Slacklining, Reading, Inline skating, Brazilian jiu-jitsu, Dance

Introduction: My name is Aracelis Kilback, I am a nice, gentle, agreeable, joyous, attractive, combative, gifted person who loves writing and wants to share my knowledge and understanding with you.