How the EOS Lip Balm Got to $250 Million In Seven Years

The story of Evolution of Smooth(EOS) is truly a daring and innovative one. Now worth $250 million dollars, the company’s founder finally revealed how it all started.

Over 10 years ago, co-founder Sanjiv Mehra, an expert in consumer packaging, teamed up with Craig Dubistky and co-founder Jonathan Teller, seasoned players in startup incubators, found an area that was lacking innovation. With a bit of research, they found that products in the lip balm category were “indistinguishable” from each other.

From there, consumer research revealed some interesting answers that popped up. First, the trio was quick to learn that most lip balms were bought by women and they did not find the application fun. Other insightful answers paved the way the applicator looks now. From the soft casing, the click sound when closing the pot, the exposed balm, every part of the pot serves a purpose.

But how did EOS lip balm compete with the already dominated market? Though they hired a sales team, many big named brands were unsure about it. Fortunately, their first big break was with a female buyer at Walgreens who absolutely fell in love with the egg-shaped pod. After that, Walmart and Target wanted in.

Even with their product placement, the lip balm company co-founders focused on their target audience, millennial women. Through their clever way of being effective at influencer marketing, they were able to get the word out, fast. From beauty bloggers to millennial celebrities, the women didn’t stand a chance to ignore the product, the lip balms were popping up everywhere. Furthermore, keeping up with their audience who were on Facebook and social media, EOS has an active Instagram and Facebook account with followers in the millions.

After seven years of strategic planning from product design to market, Teller and Mehra were grateful of each other’s different background – a complementary match that gave them the advantage.

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