14x12 - Episode 12

[bunniefuu]

Narrator: Tonight, Daniel Lubetzky,
the founder of groundbreaking

snack company KIND,
returns to the t*nk.

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?

[ Sad horns play ]

[ Laughter ]

♪

Narrator: First in the
t*nk 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.

John: 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.

[ Laughter ]

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


And of the wholesale,

I did get into Nordstrom,
Credo Beauty,

Free People, and over


Cuban: Good for
you. Greiner: 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.

John: 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 t*nk.

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.

Greiner: 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 dr*gs.

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%.

Greiner: 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.

♪

Narrator: 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.



I've invested in so
many different deals.


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


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. Greiner:
That's right. Maybe she feels like...

John: That's not...
That's not a negotiation.

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

Cuban: 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. Lubetzky: 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.

[ Laughs ] 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. [ Laughter ]

Bye, everyone. Congratulations.

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

Greiner: Good luck.
Congratulations.

Hell, yeah. Good for her.

♪

Velasquez: 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.

♪

Narrator: 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.

Jansen: Each of our bikes
is made up of 65 unique parts

from 40 different vendors,

and 100% of those
came from China.

Riley: 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
w*r, 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 t*nk," 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.

Jansen: 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.

Riley: 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.

♪

♪

Narrator: 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...

Greiner: I tried
every single one,

and they all taste
very pure and clean.

If you just push one button.

Okay.

[ Whirring ]

And so you let it go? Yes.

It stops by itself?
Stops by itself.

Dane: 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


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.

Cuban: 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.

Greiner: 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.

Cuban: 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.

Cuban: 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.

John: Yes, got it.
You're all... You're all in.

Greiner: 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...

Cuban: 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.

Cuban: That's 'cause
it's convertible note.

Right. John: It's
convertible, though.

Cuban: 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?

Cuban: 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.

Lubetzky: 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.

[ Indistinct whispering ]

Okay.

We'd be interested in $500,000

for 7.5%, plus


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.

Alicia: Thank you so
much. Appreciate it.

♪

Alicia: 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.

Narrator: Next into the
t*nk is a product made

with an ancient superfood.

[ Sung to the tune of "When the Saints
Go Marching In" ] ♪ 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.

[ Sad horns play ]

[ Laughter ]

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... [ Horns blow ]

to our seed
butter... [ Horns blow ]

to our snack
bar... [ Horns blow ]

and we even have a
high protein crunch puff.

[ Horns blow ] [ Laughs ]

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

and snack with a purpose?

♪

Ah!

[ Laughter ]

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.

Lubetzky: 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.




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?

Cuban: He already
is. Greiner: Yeah.

[ Laughs ]

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. John: 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.

[ Chuckles ]

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.

♪

[ Chuckles ] "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.

Gailmor: 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.

♪

Narrator: 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?

[ Chuckles ]

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!

[ Laughter ] O'Leary:
Let's... Great pitch.

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

Yes. John:
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.

Cuban: $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


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 t*nk" 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.

[ Speaks Spanish ]

So [speaks Spanish]
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. [ Laughter ]

Let's go. Cuban:
You did it, Juan.

Yeah, I admire
all of you so much.

And [speaks Spanish] 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.

[ Cheering ]

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.

[ Chuckles ] 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%.

Greiner: Whoa! John: Whoa.

Ouch.

♪

Narrator: 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%.

Greiner: 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.

[ Laughter ]

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.

[ Laughs ] Congrats, Juan.

[ Conversing in Spanish ]

[ Laughter ]

Good luck, Juan. Congrats.

Greiner: 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.
[ Chuckles ]

I gotta call my dad, my sister,

gotta call my son.

[ Exhales sharply ]