All language subtitles for english-shark-tank-season-14-nopalera-nutr-brass-roots-frescos-naturales

Tonight, Daniel Lubetzky,
the founder of groundbreaking

snack company KIND,
returns to the Tank.

I love what you just said.
I love you.

So, Sharks,
who's ready to march

in our brass band
and snack with a purpose?

We are at that hockey stick
moment of our business.

What are your sales?

We are on track
for $6 million.

Ay, ya, ya.
Arriba!

The opportunities are big
as the sea is deep.

Dang.
If you're gonna consider
offers like that,

then I'm gonna make you
an offer.

Whoa!
What the French toast?

How much pain
are you willing to take?

You can make up
your opinion,

but you cannot make up
your own facts.

There's nobody in except me, alright?

First in the Tank
is an entrepreneur

with a mission
to redefine luxury.

Hola, Tiburones!

Me llamo Sandra Velasquez.

And I am here seeking $300,000
for 5% equity in my company.

Wow.
I was born and raised
in Southern California

to Mexican immigrant parents,

and growing up,
nopales were everywhere.

What's a nopal?
A cactus.

It is so versatile.

You can eat it, make textiles
from it, and it is so hydrating

you can use it to cleanse
your skin and hair.

So I took
the most Mexican plant ever,

the nopal, and
created Nopalera,

Mexican Botanicals
for Bath & Body,

using the nopal
as our star ingredient.

From our nourishing
cactus soaps

to our cactus
flower exfoliants

to our moisturizing
botanical bars,

I created Nopalera to
celebrate and elevate Latino culture

and change the perception
of Latino goods

while inspiring our community
to stand in their worth.

Sharks, que viva Nopalera!

Who is ready to help me build
the next Latina legacy brand?

In front of each of you

is our full suite
of bath and body products.

Enjoy.

What is this one?

That is the Cactus Flower
Exfoliant. That's a body scrub.

Oh, wow.
Takes off the outer layers
of your skin.

Yes, three in one.
That can-- That can, like,
take your scales off, Kevin.

Yeah.
Very nice.

Mmm. This smells delicious.
What is this?

Thank you.
That is the Noche Clara.

That is sage and eucalyptus.

Qué rico huele.

This is a, what we call
the Moisturizing Botanical Bar.

It is a solid
body moisturizer.

The moisturizer
is also a soap?

This is to replace
a plastic bottle of lotion.

It's a lotion in a bar?

That's correct.
Oh, this is a-- This--

So you just take it
and you rub it on like that?

That's right.
And that's like if you did
a pump of your lotion.

That is cool.
It's almost like a--

The only thing I know
that's similar is

maybe a cocoa butter bar, right?

Exactly.
It's also about the environment.

So lotion is 70% water.
Sandra.

This-- no water.
I love what you just said.
I love you.

That is like
my pet peeve.

All these young people
that think they're helping

the environment
and they use...

Yeah. Yes, yes.
...shampoos and body washes
and it's all water,

but it's contained
in plastic bottle.

Exactly.
So you're just buying a bunch
of plastic bottles.

Yes.

What's your background?

I have been a musician
my entire life.

And I thought that that was
my purpose on Earth.

I used to be the lead singer
of a Latin alternative band

called Pistolero,
I sang in Spanish.

And so it seems like
a big jump to go

from a lead singer of a band
to running a beauty company.

But, really,
the mission is the same, right?

I'm celebrating my culture.

I am making people feel seen,
making them feel proud.

Because I live in New York,
very expensive city,

I always had to
have a day job,

so I worked as a sales rep
for CPG brands,

but I found myself
unemployed at the age of 43

a couple of summers ago
with student loan debt,

credit card debt,
and a child to raise.

I knew that the only way
I was going to change my life

was to create something bigger

than I had ever actually
been a part of before.

The answer wasn't going to be
working for

yet another CPG brand that
wasn't going to pay me enough.

And so I started
to build this brand.

One of the things that I did
was invest in myself

by enrolling
in formulation school.

I said, why does this brand
not already exist?

Latinos are the largest
minority group in this country,

and yet we have been
conditioned to aspire to
Eurocentric brands

with French and Italian names.

So what's driving me

is really I want to show
my community what is possible.

I don't want to aspire
to be like someone else.

We want to aspire
to be ourselves.

So it's not just for Latinas,
though. It's for everybody.

Thank you, Kevin.
Thank you. Thank you.

What are your sales?

Okay. Okay, so sales.

So I launched in the middle
of the pandemic, November 2020.

That was $19,000.

Then 2021, which I consider
my first full year of business,

$607,000 in sales.

Whoa. Okay. Wow.

And then year to date,
so far, we are at $335,000.

Bravo. Muy bien.
Projected to do
$1 million this year.

How-- How are these sales?
Where are they coming from?

Like, D2C?

So our business is pretty
much 50/50 D2C, 50% wholesale.

And of the wholesale,

I did get into Nordstrom,
Credo Beauty,

Free People, and over
350 boutiques nationwide.

Good for you. Wow.

I said bravo because I do
think, you know, from launch

to get to $600,000, $300,000
I think is very respectable.

But how do you impute
a $6 million

valuation on the business?
Yes.

That's very hard
to justify.

I have meetings booked with
the two top beauty retailers

in the next 30 days.

We are at that hockey stick
moment of our business.

Like,
the tidal wave is coming,

and, uh, we have
so much interest,

even from international
places, that we can't really
say yes to

because we're not set up operationally.

Here's my thought about this.

So, I have two
beautiful daughters

that are half Latina.

I-I-I love your mission.

Thank you.
I would have to ask
for so much

that it would compromise
the end of the day

why you started it.

Thank you.
I would ask for too much.

So with that, I'm out.

I so appreciate where you're
coming from. Thank you so much.

Do you think you'll break
even, or you'll lose money
this year?

We should be profitable
by the end of this year

with the forecast that we
have. We're really--

What do you think
you'll make in profit then?

That's a great question.

I would have to look
at the forecast again, but--

Well, you should know
that number.

Yes, I should.

What is it?

What the--
What the cash profit is?

Yeah. I mean,
you're in the Shark Tank.

You better know your numbers
or I put you to hell. Yes.

I know a lot
of different numbers, yes.

Well, it really--
We're really strong in Q4.

So when-- when holiday
season comes,

also Hispanic Heritage Month
is coming,

this is where we-- where
we're going to make, you know,

hit our revenue goals
is at the end of the year.

Listen,
your mission is great.

Your intention,
your heart.

But it's a great business
for you,

but it's not investable
for me.

I wish you good luck,
but I'm out.

What you've accomplished
is amazing.
Thank you.

The valuation relative to what
I can probably add is really high.

Okay.
So for those reasons,
I'm out.

Mark, I so appreciate you,
and I just want to say,

I really respect what you're
doing with Cost Plus Drugs.

Thank you.
Thank you.

Daniel?

Look, um...

Compañero, dime. Compañera,

first of all,
you're very impressive.

Thank you.
A very good ambassador
of our people.

Thank you.
I have a personal trauma
with this category.

When I-- When I graduated
from law school,

I started a company
called Peaceworks,

and my first foray
was dead sea minerals and soaps.

And-- And I didn't understand
what I was doing.

Mm.
And I took
all of my savings

from the prior summers,
$15,000,

and plugged that
into inventory.

And I lived in
a small studio apartment,

and I couldn't get rid
of the inventory for many years.

Mm.
And there were all
these aromatherapy minerals

and salts that were so
powerful, the smells.

And so I couldn't
get any dates

because people would get close
to that studio...

But these are not
strong smelling.
...and they're like,
"Whoa, what is going on?"

So nobody wanted to come over
to my studio apartment.

I just don't-- I have
the wrong instincts for these.

I-I learned the hard way,
and for that reason, I'm out.

Okay, Daniel.
But I'm still
rooting for you.

I still appreciate you
and everything

that you're doing with
SOMOS and--
Thanks.

Okay. Sandra, there's nobody
in except me, alright?

Oh, Kevin. How did it come--
How did it get to this point?

Well, you know, I actually
am impressed with you,

but you're not
worth $6 million.

You just aren't, and you don't
have enough infrastructure

yet to claim that.

However, I'll give you
the $300,000.

I want 30%.

Ooh! Ooh!

Ooh.
I think-- I don't think
you're worth

much more than a million
bucks right now.

You could use the contacts
I have in retail,

and, you know,
QVC and all that stuff.

Sandra, I was going to make
you a very sharky offer,

but I decided not to,
I respect you.
And the last thing
I want you to know.

But if-- if you're gonna
consider offers like that,

then I'm gonna
make you an offer.

Four Sharks are out.

Sandra has an offer
on the table from Kevin

for her cactus-based skincare
line Nopalera,

but he wants 30%
of the company,

a much bigger stake than the
5% she came in offering.

And Daniel may have had
a change of heart.

If you're gonna consider
offers like that,

then I'm gonna
make you an offer.

From your numbers, the most I
could go is $300,000 for 25%.

As you all know, this is a
brand that is about self
- worth.

Right? My ancestors--
Sandra, you got two offers.

Oh, you do have two offers.
That's pretty impr--
You got two offers.

Yes.
You may not
like the valuation.

So what's your offer, Kevin?
I want-- I want to add one
other thing for you to consider.

14 years of "Shark Tank."

I've invested
in so many different deals.

75% of my returns have come
from the companies run by women.

So I'm very biased to invest
in strong women entrepreneurs.

That's what I've learned.
That's the truth.

And it--
it really works.

My offer
is $300,000 for 30%,

and Daniel's a discount Shark,
so he wants to do it for 25%.

So, definitely
I-I cannot go to 25%, Daniel.

We are in
the middle of a race.

I understand
where you're coming from.

I am a young brand.
What is your counter
to either of us?

It's-- It's 10% for--

for-- for $600,000.

Wow.
This is--

I'm sorry.
You said 10% for $600,000?

Yes, it's-- it's the $300,000
for 5%.

That is the same exact thing
you came in with.

That's right. That's right.
That's right.
Maybe she feels like--

That's not--
That's not a negotiation.

That's-- That's
"I came here for this or not."

You're allowed to be
proud of your company.

You are allowed to be.
You have no--
Alright, alright.

Here's how the show goes.
You know,
don't let them shame you

into that you came in with
the wrong valuation.

No, but, Lori, I--
Lori, let's be clear.
No, it's totally fair.

I mean, there's no wiggle room
at all?

Sometimes, maybe not.
No, because, Daymond,
what's going on

is she has the two largest
beauty retailers

coming in front of her

and she has a feeling
of where she's headed.

I'm not questioning
whether she has merit or not,

but here's how
the show goes.

You gotta
negotiate a little bit.
You come in,
there's a number,

and you're willing
to negotiate.

What she just basically said
is, no, there is no negotiation.

I appreciate all of you,
really. I really do. Sandra.

I really respect
all of you,

but my ancestors are
whispering in my ear

and they're saying,
Mija, no te desprecias.

Don't undervalue yourself.
And you're right.
Always listen to your God

and to your ancestors.

We wish you the best.
We'll buy the product.

I'm out.

Thank you so much.

Okay, I'm out.

Thank you.

Bye, everyone. Congratulations.

Thank you. Thank you.
Have a great day.
Great job. Great job.

Good luck. Congratulations.

Hell, yeah.
Good for her.

I walked away from
multiple Shark offers

because I had a ceiling in
mind, and I just didn't want
to budge.

But just like the nopal,
which is resilient and ancient,

has always been here
and always will be, so will we.

And the future is bright
for Nopalera.

No wiggle room's crazy.
That's a first.

You negotiate.

This show is based on negotiation. Yep.

Yeah, but for her,
it was all about self-worth

and she stuck to it.

In Season 8,
we watched Bryan Riley

and Kyle Jansen
make a deal with Mark Cuban

for their safer bike braking
system for kids, Guardian Bikes.

Mark, you got a deal. Done.

Let's see what
they're up to now.

Each of our bikes
is made up of 65 unique parts

from 40 different vendors,

and 100% of those
came from China.

During the trade wars,

our tariff went from 11%
all the way up to 36%

and caused us to have to
raise prices to consumers.

On top of the trade war,
COVID started.

Our containers went from
$5,000 all the way up to
$25,000,

putting tons of pressure
on the business.

Yeah, it's gonna be huge.

Mark came up
with this crazy idea.

Why not take control
of the supply chain

and bring it all
right here into the U. S. A.?

Nobody in our industry
had done it before.

After two years of research
and planning,

we turned this crazy idea
into a reality.

I'm excited because
we're here in our brand-new,

state-of-the-art facility
in Seymour, Indiana.

We've got robotics
helping us build bikes.

We've got a full-blown
assembly line,

and we ship all of our bikes
straight to customers' doors.

When we pitched
the Sharks,

we had done $300,000
in lifetime sales.

Since "Shark Tank," we've done
$33.5 million in sales.

We had a conversation
a few years back

about moving your
manufacturing to the United States,

and you did it.

Anybody in business
that sells any type of product

experienced
supply chain disruptions

over the last three years.

When you move production
from overseas and create jobs--

in this case, 100 jobs--
it's a great thing.

It sets a foundation for
manufacturing for the future,

and that's-- that's what
this country needs to do.

We're on our way to
that $100 million in
sales goal, aren't we?

That's where we're headed.

Everywhere we go in
the town, people recognize us

'cause it is a big deal
for a town like Seymour

to be creating
these jobs.

The Guardian Bikes'
brand has always been

about safety
and empowering kids.

By bringing manufacturing
back to the U. S.,

we can help be an inspiration
to these young kids

that someday
they can go out

and create their own business
and chase their dreams.

Next up is a way
to make a healthy

new trend at home.

Hi, Sharks.
I'm Alicia.

And I'm her husband, Dane,
and we're from Columbus, Ohio.

Sharks, I've been making
plant-based milks

at home for years.

But let me tell you,

it's better
than the alternative--

store-bought milks.

Many plant-based milks in
store are filled with preservatives,

gum fillers
and processed sugars.

Isn't that nuts?

We knew there had to be
a more sustainable

and easier way to make
plant-based milk at home.

And that's why
we created...

Nutr. Nutr.

Our Nutr machine
can make plant-based milks

in minutes, all with just
a push of a button.

Simply add some nuts,

water and other ingredients
of your choice

into your Nutr machine,

and after a few minutes
of blending...

Voilà, here's your clean
and nutritious plant-based
milk.

Okay, Sharks, we know this may
sound a little nutty,

but we're asking
for $500,000.

In exchange
for 5% of Nutr.

Ooh.

Sharks...
Whoa! What the French toast?

...who's ready to change the
way we milk for a better
future?

Please check out the Nutr
machines for yourselves.

Daniel, why don't you come up
here and give it a try?

Okay.
Yeah.

And in front of you,

you'll also find plain
almond milk and oat milk,

as well as strawberry,
vanilla, chocolate, and matcha,

all made with our proprietary
nut blends.

So...
And so we put in...

Yeah.
Put them in?

Absolutely.

Okay,
so I'm gonna put in...

Yep, put in one scoop. Absolutely.

Whoa, this is good.

And then how much water?
The whole cup.

You can pour
the whole cup.

Okay, so we close it.
Yup, and then--

I tried every single one,

and they all taste
very pure and clean.

If you just push
one button.

Okay.

And so you let it go?
Yes.

It stops by itself?
Stops by itself.

Correct.

Oh, it is very creamy.

Very creamy.

It was no-- So, Daniel,
how does it taste?

You know
what I love about this?

Is the store brands,
you're tasting sugar.

This you just taste purely
the cashews.

What do you sell these for?

And what does it cost you
to make them?

So, we make them
for $42 each.

And what do you
sell them for?

We sell them for $169.

So, you have a great margin.

Yeah, it's about
a 73% gross margin.

Are you selling-- Are you
selling it direct to consumer

or to retailer or both?

So mostly 90% of our sales
are through our website.

So, um, I noticed
in this box here

you have all these
different things

that make the drink flavors
we just tried.

Absolutely.
Correct.

Tell us the numbers
there for your...

Nutr blends.

Yeah, so for biweekly subscription,

is starting at $45
and a monthly is $75.

What?
Per month.

Wait, wait.
Per month?

I can't stand the tension.

What are you--
What did you sell last year?

We finished a year
with $793,000 in sales.

Wow.
Was there a Kickstarter
involved or...

No.
Okay. What about this year?

What are you gonna do?

So far,
close to $2 million.

We are on track
for $6 million this year.

Okay, so $2 million
so far this year. Wow.

So, how did you do that?

Did you spend a lot of money
on advertising?

Or what did you do to build
community and drive your
sales?

Influencer marketing.
That's not-- not bad.

And how much did you
spend on advertising,

promotion,
and influencer marketing?

Yeah,
so for the past 12 months,

we've done-- spent on
marketing for $1.3 million.

O'Leary: Whoa.
Did you raise any money?

No.
We bootstrapped.

We put in about
half a million dollars.

Yes, got it.
You're all-- You're all in.

So here, you guys.
I'll tell you what I think.

I think that there are always
people that like another gadget

that help to make their
morning coffee experience

something experiential
and better.

I have one of those things
that froth your milk,

but the problem with me
is I love it and I never use it.

And so unfortunately,
I'm out.

Do you have any debt?

Do you have any debt or any
investors, outside investors?

We have
a creative financing.

So we did, you know,

it's a crowdfunding
platform for--

You said-- You guys
said you bootstrapped it.

And then you said you didn't
do any crowdfunding.
But, no, that's actually
a financing option.

The crowdfunding
is not Indiegogo.

It's a Kickfurther.

They'll only finance
your inventory.

Oh, 'cause crowdfunding
only for your inventory.

How much do you owe
in debt?

$1 million. Oh.

No outside investors.

No.
No.

So we have
a soft circle

with about a quarter million
from angels, so we're looking--

You can't be both.

You can't have $250,000
from angel investors

and say you bootstrapped. Yeah,
you said you bootstrapped.

You said you didn't have
any debt.
Right, we own 100%
of the company.

That's 'cause
it's convertible note.

Right.
It's convertible, though.

You probably know
I invested in Numilk, right?

And just personally--

Numilk is a big
commercial one, right?

And they have
a countertop one, too.

And so I like the product
a little better,

but I'm biased there.

So for those reasons,
I'm out.

Appreciate that.

If you come in here
and ask for $100,000

and I could have put the whole
Chef Wonderful thing behind it

and blown it up for you
and added to the social

and all that,
then it gets interesting.

But $500,000-- I have to see
a path to liquidity times 10.

That's the problem
with this pitch.

Yeah, I understand that.
I'm out.

Yeah,
and I appreciate it.

How's that-- How's that 5%
thing working out right now?

Yeah, you got Daniel
left and--

I'm still talking.
But I'm talking.

H-Here's what I think.

You're trying
to charge us

in what it will be
in the future today,

and the future
is your opinion.

You can make up
your own opinion,

but you cannot make up
your own facts.

We have to look
at the numbers today.

You're good people,
great product.

I'm out.

Okay, appreciate the feedback.
And then--

O'Leary: There's one Shark
left. Daniel.

Yeah. So since COVID started,
people really are conscious

about what
they're putting their body.

People want
to drink healthy,

and, really, people
are willing to pay a premium.

Let me just first
start by telling you. Yeah.

So I'll ask you
if you want to make me an offer,

I will entertain it.

But I agree with Daymond
that you came in with an ask

that is very hard to reconcile
with the numbers.

Yep.
So, what is your
best offer?

Thank you, Daniel.

You are the entrepreneur
I've been admiring for years,

and so, um...

It's gonna be a yes
or no answer.

Okay.

We'd be interested
in $500,000

for 7.5%,
plus 2% advisory share.

No, I-- I'm glad that
I asked it this way

because I would have offended
you with what I had in my mind.

What do you have in mind?

I think I'm out,
but prove us wrong.

Okay.
Good luck.

Thank you so much.
Appreciate it.

We gotta prove
to the Sharks that they're
wrong

because we're gonna
grow this to $1 billion,

and also we're gonna be in
every single coffee chain, so--

and in every single household
in America.

Next into the Tank
is a product made

with an ancient superfood.

♪ Brass Roots is here ♪

♪ With healthy snacks ♪

♪ Made from that
sacha inchi seed ♪

♪ Brass Roots
got what you need ♪

My name is Aaron Gailmor,
and I'm from New Orleans

in case you couldn't tell.

I'm seeking $400,000 for 7%
of my company, Brass Roots.

The prevalence of
peanut allergies

has more than tripled
in recent years,

with thousands of schools
banning peanut

and tree nut products altogether,

including a kid's lunch
staple, the PB&J.

Well, the Big Easy
is making snacking

a whole lot easier
with Brass Roots,

the first snacks made
from the sacha inchi seed.

Now, you're
probably wondering,

what the heck
is a sacha inchi seed?

Well, it's also known
as the Incan peanut

because it looks, taste,
crunches, and cooks like a nut

but without the allergens.

So it's school, pantry,
and airline safe.

And compared to an almond,

widely considered
one of the healthiest nuts,

it's got 50% more protein
and it's high in omega-3 fats

of which the almond
has basically none.

And with zero net carbs,
it's keto and paleo friendly.

From our roasted seeds...

...to our seed butter...

...to our snack bar...

...and we even have
a high protein crunch puff.

So, Sharks, who's ready
to march in our brass band

and snack with a purpose?

Ah!

Excellent.
Really good.

Shark, what you have in front
of you is a lunch box

filled with our sacha inchi snacks.

We've got two
different flavors

of our roasted
sacha inchi seeds--

truffle parmesan
and a sweet heat.

And then we've got
our high-protein crunch puffs

in a truffle rosemary flavor.

We've got a sacha inchi butter
and jelly sandwich.

Boy, these are delicious.

And we've got our
chocolate chip sacha inchi bar.

I like the truffle one.
Thank you.

It's very truffley.
Tell me about you.

I moved to New Orleans
about eight years ago,

and I actually-- Part of the
reason I started this business,

my father in 2010 was
diagnosed with heart disease.

And so as a family,

we all started to take a
closer look at our health and wellness

and-- and I became
very interested in nutrition.

It kind of became
a hobby of mine.

Fast-forward to when
I moved to New Orleans,

turns out Louisiana has
some of these same problems

in terms of childhood
diabetes, cardiovascular problems.

So we really wanted
to incorporate

that into our whole brand.

We do a lot of work
in the community as well,

so we work with different
youth--

youth organizations there,

we partner with
a registered dietitian

and we help kids
learn about nutrition.

In fact, Darren,
the trumpeter who is here,

I met him through
one of these organizations

called Roots of Music.

They help kids
pursue passions in music.

So we help them
kind of on the intuition side.

Okay, what were you
doing before this?

Um, I went to school
for business.

I went into--
I worked at Citigroup

in the investment bank there
for a few years.

During that time is
when my dad was diagnosed,

and we-- I started kind of
getting obsessed

with food and nutrition.

And then I actually co-founded
another business,

but we made a mistake
in terms of trying to go

everywhere at once.

We went national,
and we didn't have

the capital
to support all that in sales.

What was the business?

It was called Super Eats.

So it was the first
kale chip

that was in the form
of a tortilla chip.

So I learned that,

but I also,
in my work for that company,

discovered the sacha inchi
seed and basically said,

look, to my co-founder,

"Hey, I actually think
I can turn this around,

redo everything, rebrand."

He let me buy him out,
but I did keep those investors.

I wanted to get them a return,
and here we are.

Okay, so why don't you tell me
what you're selling?

'Cause if I want to play ball
and get involved in this,

put Chef Wonderful
behind it,

I got to write
a check for $400,000.

Why would I do that?

Yeah. So 2019,
we did $35,000.

2020, we did $250,000.

2021, we did $500,000,
and then this year

we're expecting
to do $1.5 million.

Wow.
What are you gonna make
on $1.5 million?

We're not-- We're not
profitable at this point.

Well, how much
are you gonna lose?

So we're basically able
to cover our overhead

with our gross margin
right now.

On a monthly basis,

we're burning anywhere
from $20,000 to $30,000.

Okay, and how much-- how much
do you have in the bank?

We've about $100,000
in the bank.

So you're in
a tough place here.

You're gonna burn out
in 90 days.

What's your leading SKU?
What's your leading item?

So actually, the lightly
salted seeds have been our
best seller.

What's the costs
and the return?
Yeah.

So, that costs us about $4.50
to $5 all in,

and then we're selling it
for $17.99 right now.

How much is this?

Same price. Wow.

$17.99?
That's a lot of money.

So, we're actually
at a discount

to organic almonds,
priced at around $19.99.

How much have you raised
in investment to date?

We've raised
$1.7 million to date.

Hello.
Oh, wow.

At what valuation?

The most recent valuation

was $5 million
post-money valuation.

So you've got investors in
at 5 million bucks.

You've got 90 days
worth of cash left.

How much pain
are you willing to take?

Because there is
no way on Earth

I'm giving you
a $5.7 million valuation.

Do we even know what you still
own yourself out of the
company?

So, I own 33%
of the company right now.

Ooh.
Oh, that's hard, man.

Are you willing
to take pain?

He already is. Yeah.

Part of the reason
that I have 33% and not,

you know, 75%, for example,
is that my first investors

who invested in 2014
in that separate business,

I really wanted
to commit to them.

I could have, honestly--
So you rolled it over
and gave them equity.

Yeah, and-- and
people tell me all the time--
You know what?
Good for you.

O'Leary:
Well, that's very honorable.

And I see the merit
of what you did,

but rolling over equity
from a dead deal--

When you invest
in venture,

sometimes you win,
sometimes you lose.

But your friends
are your friends forever.

I get it, but even
your friends understand

you gave it your best.

In venture investing,
poo-poo happens.

You took that weight and you
brought it into your new deal

and it took
equity away from you.

You actually burden me
with all of the past sins.

I'm out.

So, look, you're--
you're in a Catch-22

where you've got
to spend to grow

because you're trying to
educate people about
what inchi seeds are,

you're trying to educate them
about your product,

and what compounds the
challenge is your margins are small.

That's going to be difficult.
I just don't see it.

So for those reasons,
I'm out.

Okay.
I appreciate that, Mark.

You're welcome.
So, you're an amazing,
beautiful person

and are trying to solve a lot
of things at the same time.

But you only have 33% left,

and there's no meat on the
bone for me to feel comfortable.

I'm gonna be a customer,
but I'm out.

I appreciate that. Okay.

Listen, it's a very
interesting product.

I'm really into health.
I always have been.

The only problem I see
with it at all

is that people
just don't know en masse

yet what the sacha inchi seed is.

And I don't know enough
about this product

or how to get that known
and recognized.

So I'm out.

Thanks, Lori.

Did everybody go?

You're the Almond King.

Aaron,
I'm struggling here

because there's a lot of good
in what you're doing.

You project an enormous amount
of self-confidence.

I assume that behind it
there's the feelings

that all of us entrepreneurs have

when we're facing
three months left of financing

and we're like sweating.

The silver lining
in the months ahead

that you're gonna face is that
there's nowhere to hide, right?

So it's gonna
make you stronger

because every dollar matters.

Mm-hmm.

I don't think this business
is investable

at this moment.

I wish you the best,
but I'm out.

Okay.
Alright, I appreciate that.

Good luck.
Good luck, man.

Thank you, guys.

"I'm not a nut!"

That guy's in a world of hurt
right now.

I know.
He's a good guy. I think--

He's a great guy,
and the product has--

It's painful to turn down--
have to turn down people

like that all the time up
here that have amazing missions

and you want to be part
of what they're doing.

I know Mr. Wonderful
said we're in a world of hurt.

I very much
disagree with that.

We've got such great
growth metrics right now.

People are coming to us

talking about how much
they love sacha inchi

and it's actually helping
and changing their lives.

So I'm-- I'm really excited
about our future.

Next up is
an entrepreneur who's bottled

a favorite Latin American
homemade drink.

Hola, Tiburones!
Hello, Sharks.

My name is
Juan Ignacio Stewart.

I'm from Boulder, Colorado.

My company is called
Frescos Naturales.

And I'm here looking
for $130,000 for 8% equity

in the business.

Now, Sharks,
Latin American food and culture

are now part of the fabric
of this country.

Anybody ever hear
Taco Tuesday before?

But even though the food
culture has been embraced,

in the beverage space,
there are very few healthy

Latin American
drink alternatives

to high fructose corn syrup
or artificially flavored sodas.

You may ask,
do they even exist?

And I would say claro,
of course they do.

If you go to the homes

of most immigrant
and Latinx families,

you will find that we make
some of our daily refrescos

fresh at home with real
ingredients and low sugar.

Now, for those
that are unfamiliar,

we call these refreshing,
water-based drinks

agua frescas or refrescos.

Using recipes of growing up
back home in Guatemala,

I developed Frescos Naturales,
the first full line

of better-for-you sparkling
agua frescas.

We use just three ingredients,
one of those being water,

then the highest quality
fruits and flowers

and then just a little bit of
sugar to wrap them up good.

We've created the best tasting
agua frescas

you've ever had in your life.

And we're innovating
in these traditional recipes

by adding light carbonation,

making them a perfectly
balanced fruit drink with bubbles

in a can.

Now, Sharks,
I can't wait to build one

of the biggest, better-for-you
beverage brands in the world.

So, Tiburones, Sharks,

the opportunities are big
as the sea is deep.

So, how many of you are ready
to jump into the waters

of Frescos Naturales?

Ay, ya, ya.
Arriba!

O'Leary:
Let's-- Great pitch.

It was very good.
It was poetic.
Let's try them, right?

Yes.
Alright, let's try it.

Sharks, in front of you,
we have three of our top
four selling flavors.

You have Maracuyá,
which is passion fruit.

The Rosa de Jamaica
is the dark red one.

That is hibiscus.

And the pink-colored can,
that's Guayaba. It's guava.

Y Chihuahua, caramba!
That's good.

It's light.
Yes, you can smell
the fruit.

I mean, it's basically--

How many calories
in a can, Juan?

You're having the-- the
Jamaica, that's the hibiscus.

Probably-- I think that one's
60, 60 calories in a can.

So, some have more sugar
than others.

So I add like 5 to 10 grams of
added sugar per-- per recipe,

more or less,
depends on which one.

Very good. Mm.

I mean, they're--
they're almost fruit juicy

with a little bit
of carbonation.

This one, not so much.

Tell us about you.

I'm originally from Guatemala,

so that's where
these recipes come from.

So I grew up drinking these,
and I moved here like 22 years ago.

And now I make them at home
for my son, right?

For my family.

And it was actually his idea
to bottle these.

They loved it.
Is that your son, Juan?

Yes.
Yeah, that's my boy, yeah.

And he's working
the juice also?

No, no, he's not.
He's-- He's 19.

He's about to go to college.

This is actually
my second food company.

So, I-I made hot sauce before.

I have a company that's
called Green Belly Foods

that's already distributed
across Colorado.

So Joaquin was
like, "Hey, pops,

you know what you should
bottle, is this stuff."

And that's when it clicked,
man, because Jamaica,

as you know,
every Latino that you know

in the United States
drinks this

and has had it
all their life.

Okay, it's a classic.

But you go to the store
and you don't find it.

So what's the game plan?
Do you have a co-packer?

How are you going
to get distribution?

Yeah.
So, great news.

We already got accepted
into Kroger.

- What?
- Wow!
- And this is--

How many stores?
Big.

They offered
four major retailers.

King Soopers in Colorado
is 130 stores

and Ralphs here in Southern
California, 230 stores.

Dang.

I'm really impressed.

So, have you started
shipping yet?

Yes, right.

So I started last year
at the beginning of the year

with just the Jamaica,
one flavor.

Basically, that first year,
I did $182,000 in sales.

That's right, man. Wow.
Good for you.

$182,000 in sales,
year one.

Yes.

Now get us to 2022.

Right. So we're at $100,000
right now

in six months, and it's low.

It's low.
We should be like $150,000.

For a company that's imputing
a $1.6 million valuation

with the sales that you had,
you say,
Ay, Chihuahua, caramba!

Like the valuation's
implying

that you have half a million
to $1 million in sales.

So, tell us how you value
the company.

Right. Yeah, ba--

Basically, right now, I'm--
I'm looking at ending the year

at like $330,000 to $350,000
in sales this year.

We should get to $850,000
next year.

What does it cost to make it,
and what are you selling it
at?

Right.
It costs 88 cents per can.

I sell it
at $2.10 wholesale.

What is the retail cost
for the end consumer?

Right, so it-- it depends.

In some of these stores,
it's like--

they're selling it at
like $4.50.

$4.50 per can.

I want it to $2.99.

What is the average cost
of a competitor?

So the competitors
are like $3.99.

We're competing against kombucha.

We're competing
against sparkling water.

What is a can
of sparkling water?

Probably cheaper than our
stuff, for sure.

But it doesn't have the
same flavor that people want.

Juan, this looks cool.

You would have to teach me
so much to help you

that I just don't think it's
something I can help you with.

It's not for me.
I'm out.
Thank you.

Juan, I've seen so many
beverage pitches

on "Shark Tank"
in 14 years,

and getting market share
is impossible.

However, in your case,
what's remarkable

is that
this cultural niche

that you found
is really intriguing.

I do believe that there is
going to be a market for this,

but you haven't solved
the logistics.

However,
I'm gonna give you credit.

You're the first one ever
that I even thought about.

You're-- You're the best
pitch I've ever heard for a beverage,

and I've always called them
all cockroaches 'cause they were.

You're-- You're a cockroach,
too, but a really nice one.

Thank you.
I'm out.

No problem.
Yeah, Juan,
I gotta give you credit.

Your presentation
was incredible,

but I hate this business.

W-Why? Why do you...

Because it's so hard
to sustain it.

There's a limited amount
of shelf space,

and all of a sudden
they start asking

for slotting fees
or-- or advertising,

or we're gonna move you out
to somewhere else, right?

And so all of a sudden,

the investment needs
start ramping up.

I just don't like
this business.

So for those reasons,
I'm out.

For me, I think that this is
very challenging

in that it's extremely expensive...

True.
...and it's extremely competitive.

And for that reason,
I'm out.

There was one more Shark,
though-- Daniel.

So
like, I want to take this

coast to coast in the U. S.
and I want to take it to Mexico

and I want to take to Central
America where I-I--

We know there's already
consumers there wanting it.

Juan,
you're mesmerizing.

Like, I could
listen to you for hours.

You're so pleasant
to listen to.

I'm free tonight
if you want to.

Beautiful energy.

Let's go.
You did it, Juan.

Yeah,
I admire all of you so much.

And
thank you.

It's a ton of work,

but I-I just love your energy
and your personality

and so much passion
and I want to invest.

But sometimes entrepreneurs

don't realize how hard the
road is gonna be.

Well, no, when I launched
this, it was right before

the first diagnosis
of cancer for my son.

Yeah, it was rough.

You know, like, launching this
a-and pushing it

while also being--
going through all of that

was-- was the hardest thing.

Like-- Like, even dealing
with the shortage

of aluminum during COVID--
not a problem.

Like, honestly,
going to explain to gringos

what Jamaica is--
not a problem.

Getting accounts,
making maps,

distributing, moving pallets-- not a problem.

Cancer with my son,
that was something that, um,

yeah, that really shows you,
like-- like, there's things,

like, what matters
and-- and what is, you know,

people can wait
for the drinks.

Puts things in context.
So, he was 15. He's 19 now.

He just had scans this last
week, and they're all good.

That's right.
So he's clean now three years.

We're looking for five to be
totally-- totally on the clear.

But for me, like, the--
the drinks are a piece of cake.

Well, um...

I'm sure you're gonna
figure this out

because both your energy
and your entrepreneurial spirit

are very there,
it's very clear.

With your help?

This is not,
as it is today,

not an investable business,
but I'll say one thing.

To all the Sharks,

I am completely serious
about this.

This really is
on trend.

It is one
of the hardest spaces.

If you convince
one of the other Sharks,

I'll do this
because I believe in you.

We're all out, Daniel.
There's no one to convince.

This is exactly what I wanted.

O'Leary: Wait a second.
Wait a second.

I'll do the deal with you.
I want 30%.

Whoa!
Whoa.

Ouch.

Three Sharks are out.

Kevin has agreed to join
Daniel on an offer

for Juan's agua fresca
company, Frescos Naturales,

but he wants a much bigger
slice of the business

than the 8%
Juan came in offering.

O'Leary: Wait a second.
Wait a second.

I'll do the deal with you.
I want 30%.

Whoa!
15% each.

It's the only way
that happens.

Don't disrespect
yourself, Juan.
I do not have a beverage.

At 14 years,
I've never done a beverage deal

'cause I hate the space.

But I love this guy.

If we get 30% for $130,000
I'll do the deal.

Um, you know,
I really appreciate that.

My mark right here is 20%...

No, not doing it.
...then I'm really ready
to work with you.

Sorry, Daniel,
not doing that.
10%, 10%?

Daniel, would you do it
for 20%?
10%'s not enough.

I-I-I can't.
I know what's involved.

My team has a lot of stuff
on their plate.

Juan...

Oh, here's the other part.

I should have brought
this up earlier.

I'm also looking for financing
for production.

Is that something that
you could-- you could help?

You said $130,000
for 25%.

That's correct, right?

He said it in Spanish,
but that's what he said.

Did you accept that?

If it comes with financing.

Um...

The way I can do it
is that I'll do $130,000 for
25%

because it's not
just the $130,000.

We have assembled
an incredible team

to help entrepreneurs
like you.

It's the best team in
the United States

in communications,
in legal, in finance

in technology,
in everything.

I'm happy to explore
the financing.

We'll be open to it, but we
need to hit that road then...

Don't do it, Juan.
...depending on you.

Don't do it, Juan.

That's valuing your
company basically at
half a million dollars.

Marks free advice is worth
every penny that you're paying
for it.

Sometimes people get
really excitable on that carpet.

But I don't want you
to do this deal

expecting
a guaranteed finance.

The $130,000
is much less than

the hundreds
of thousands of dollars

of my team's time
helping you across the board.

So...

I-I'm sorry, but I have to
stand at the 25%.

Hmm.

Alright,
let's do it.

Congrats, Juan.

Good luck, Juan. Congrats.

Buenos.

See you at a Mavs game soon.

Ooh.

¿Qué pasa? ¿Qué pasa?
¿Qué pasa? ¿Qué pasa?

Working with Daniel is
a massive opportunity for me.

I can learn so much from him,
and I'm looking forward to that.

That's, like, the biggest--
the biggest part

'cause I've been-- I've been
doing this on my own, you know,

and-- and-- and--
and-- and figuring it out

and just be like,
"Okay, what I have to do?"

But then working with him
and his team,

that's-- that's
a massive opportunity.

And I'm so grateful.

Lord.

I gotta call my mom.

I gotta call my dad,
my sister,

gotta call my son.

Captions by VITAC--