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Case study · Burt’s Bees

How Burt’s Bees grew from candles at a craft fair to a reported $925 million Clorox deal

TL;DR

Burt’s Bees began in 1984 when Roxanne Quimby started selling candles made from beekeeper Burt Shavitz’s leftover beeswax at local craft fairs in Maine. It moved into lip balm and personal care, and Clorox bought it in 2007 for a reported $925 million. The lesson is to start with a free or cheap material, sell it face to face, and follow the product your customers pull toward.

How it started

Roxanne Quimby had moved to Maine in 1975 and met Burt Shavitz, a beekeeper. In 1984 the pair founded the company in Dover-Foxcroft, Maine. Quimby began making candles from Shavitz’s leftover beeswax. Their first headquarters was an abandoned one-room schoolhouse rented from a friend for $150 a year.

The raw material was already a byproduct of Shavitz’s beekeeping. That kept the starting costs very low and gave the product a natural story.

How they got the first customers

Their first sales were at local craft fairs. According to Wikipedia, sales went from an initial $200 at a junior high school craft fair to $20,000 by the end of the first year.

In 1989 a New York City boutique ordered hundreds of candles. Around the same time the company moved into personal care products after Quimby read one of Shavitz’s 19th-century beekeeping books. A boutique order showed the product could sell beyond the local fair, and the book gave her a path into a larger category.

What drove growth

In 1991 the company introduced a lip balm, which became its best-received product according to Wikipedia. The company later relocated to Durham, North Carolina, in 1999, when Quimby bought out Shavitz’s one-third stake.

In 2004 the private equity firm AEA Investors bought 80% of the company for $173 million, with Quimby keeping 20% and a board seat. In late 2007 Clorox acquired Burt’s Bees for a reported $925 million.

Lessons you can copy

  1. 1Start with a byproductLeftover beeswax kept costs near zero. Look for a free or cheap input that you can turn into something people want.
  2. 2Sell at craft fairs and local markets firstFace-to-face selling gives you instant feedback. Quimby grew from $200 at one fair to $20,000 in a year.
  3. 3Follow your best-selling categoryThe move from candles to lip balm and personal care led to the company’s signature product. Let sales data guide the expansion.
  4. 4Tell the origin story honestlyThe beekeeper and the Maine schoolhouse gave the brand a real story that customers could repeat. A true story is hard to copy.
  5. 5Plan for founder transitionsThe partnership ended with a buyout. If you start with a partner, agree early on roles, equity and what happens if you part ways.

Frequently asked questions

What was the first Burt’s Bees product?

Candles made from beeswax supplied by Burt Shavitz. The company moved into personal care products in 1989.

How much did Clorox pay for Burt’s Bees?

Clorox acquired Burt’s Bees in late 2007 for a reported $925 million.

Where did Burt’s Bees start?

In Dover-Foxcroft, Maine, in 1984, with a headquarters in a rented one-room schoolhouse.

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