Original subtitles

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.

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