12x06 - Episode 6

[bunniefuu]

Tonight on "Shark t*nk,"

Blake Mycoskie, the founder of
revolutionary shoe company Toms,

returns to the t*nk.

This show's not about getting
the very best deal.

It's about getting
the best partner.

We live in a time
when people are questioning

the quality of the air
they breathe.

Everything you're surrounded by
is either sugary or caffeinated.

I don't think
you can do anything

without doing some good,
as well.

Sounds expensive. Ooh.

If Daymond drops out,
bad things could happen.

I'm gonna match Kevin's offer.
Wait, wait, wait.

Who do you like more?
I love all you guys.

It's now or never, Michael.
No. No. You can't do that.

Why would you want one Shark
when you can have two?

Let's go!

First into the t*nk

is a healthier version
of a favorite snack.

Hello. My name is Michael Pan,
and I'm from Portland, Oregon.

My company is...

Pan's.

And I'm here today
to talk to you about something

that's near and dear
to my heart.

Jerky!

Sharks, you're all busy

and know what it's like
to need fuel on the go,

and jerky is a convenient,
tasty, nutritious snack

people have enjoyed
for centuries.

Let's take a moment
to appreciate our jerky

in all of its glory.

I can't think
of anything more satisfying

than ripping into
a meaty, chewy,

delicious piece of jerky!

Ooh! Almost brings
a tear to my eye.

Pan's is high in fiber
and vitamin D.

It's paleo, soy‐free,
gluten‐free,

and there are just
six simple ingredients

in our original recipe.

And all our flavors have
their own unique umami tastes.

Well, I didn't mean to go
on and on about our jerky

without you being able
to taste it.

I'd love for you each to take
a bite, so please go ahead.

Now, I can't wait
to hear your thoughts,

but before you share them,
I have to admit something.

That marvelously meaty texture
that you're experiencing ‐‐

That's great. Really good.

Thank you. Love it.

...is actually...

mushrooms!

Mm! That's right!

Pan's Mushroom Jerky!

I was wondering why it
was so soft. I love it even more!

This is great.

We have four delicious flavors.

Oh, my God.

Original, Zesty Thai,

Salt and Pepper,

and Applewood Barbecue.

All of them have
a delicious flavor

and satisfying texture

that fans of jerky love.

Now, Sharks,
I'm seeking $300,000

in exchange for 10% equity.

Who's ready to
take another bite?

Wow,
that was a great reveal. Thank you.

These are all shiitakes,
by the way.

So, tell us your story.

How did you get
into mushroom jerky?

So,
my father was born and raised

in a small fishing
village in Malaysia.

Luckily,
I had the opportunity to go visit family

to learn about my heritage
and where I came from.

And one of these
visits to Malaysia,

there was a bowl
of food on the table.

I reached in and try it,

and immediately, I thought,
"Oh, this is great.

It must be pork." I
was really confused.

The person who
served it was my cousin,

and he was vegetarian Buddhist,

and he had been making the
snack for himself, for his family,

for people in the area
and selling it locally.

And as vegetarians,
they had a really hard time

finding foods that
not only tasted great,

but also had a
really great texture.

And mushrooms
are very satisfying

and also very healthy.

I was blown away,

and I knew at that point
that we had something

that had to be shared
with the rest of the world.

What does it cost landed,
and what's the store selling at?

We make it for $1.67. Okay.

Our MSP is between
$7.99 and $8.99.

Who's your biggest
chain right now selling it?

Whole Foods. Whole Foods? Okay.

Yeah, we're in two regions of
Whole Foods at the moment.

What did you say
your sales were?

In 2018,
we ended at $300,000 to start off with.

In 2019, we more than doubled.

We got to about 755K,

and I'm happy to
say in 2020 so far,

we're at $620,000 in sales.

And how many
stores are you in now?

We're in over 700
stores right now.

And where are most of
your sales coming from?

60% of our sales are on retail,
and 40% are online.

So,
how much have you invested yourself

and have you raised any money,
and if so, how much?

Yeah. So,
I put in $100,000 myself.

And how much did
you raise from outside?

None. All bootstrapped.

What about
borrowing or anything?

I have borrowed,
and we have a few loans,

and, obviously,
with COVID happening,

we were one of the businesses
that took advantage of the PPP loan.

I also took an SBA COVID Disaster loan,
as well.

Would you say you're on
track to do $1 million this year?

Yes,
and we think we're gonna get 1.5. 1.5?

We're about $95,000 to $100,000
in sales a month right now.

I want to talk about something
more exciting and fun ‐‐

How good it tastes. Yes.

Which is ‐‐ Which
is these. Incredible.

Thank you. Look at this.

I have none left.

You're not the only one. Seriously,
I'm in the bags here.

Yeah. This is fantastic.

Thank you,
Lori. Totally my cup of tea.

Now,
is there anybody else doing this?

There are others
starting to do this,

and that's obviously
why I'm here.

We want to move faster.

But we really rely on,
our taste and texture

is superior to anyone else.

Michael,
you making money yet? We are.

Our margin's around 77%

across all channels
at the moment.

What will the company make

if it hits its sales
targets this year?

In profit. In profit.

So far this year,
we are netting $61,000.

So you're saying there's
a 10% profit margin?

So,
I'm gonna just sum this all up.

You're offering
10% for $300,000.

You would have to grow
the company significantly

for me to make at least
twice my money back, right?

And I like this stuff,
but for me to get my money back

and a little something extra,
it's a long road.

So I'm out.

Thank you very much.

So, I want you to know,
I adore this.

I love jerky,
but I don't want to eat jerky.

I don't want to eat high sodium.

This is so healthy.

It tastes fantastic
‐‐ all of them.

Blake and I were talking.

Between the two of us,
we'd like to make you an offer.

And I want to share a
little bit of our thinking.

My Bantam Bagels,
we got into Starbucks nationwide,

and that was 9,000 stores.

Starbucks is great.

If you can get in there
and on their shelf,

they don't have a
lot of things to pick,

They don't. and they
like healthy stuff like this.

Starbucks is gonna love this.

And we both have incredible
relationships there. Yes.

And then the Whole Foods,

Albertsons, Kroger,
even Wal‐Mart ‐‐

everybody wants
something like this.

So, our thought was

to try to blow this up
into all those places.

But Blake's gonna
tell you our ask,

because to do that,
we need to be special partners.

"Special partners." Yeah,
I mean, here's the thing.

I only make two,
maybe three investments a year.

And the reason I do that is,

I want to come in
and be a founder.

I want to be a partner.

I want to be, like,
really building something.

And I think this has
enormous potential.

Sounds expensive.

What I like about where
you are right now is,

it reminds me a lot of
where I was at Toms,

in that until I sold Toms,
I owned 100% of the business.

I brought in a 50%
partner seven years in...

Ohhhh! ...to help grow globally.

I smell 50%.

And,
um... Are you gonna bring this offer?

It's not gonna be that
strong. Let's hear it.

- That's a great way to tee it up,
though. - I think it's 40%.

I think it's 40. I
think it's 20‐20.

What Lori and I want to do is,

we think the 300K,
we'd love to do that,

but we need to see 30% for us ‐‐

15% for me and 15% for Lori.

Michael ‐‐ Michael ‐‐

Now, before you interrupt,
let me just say is,

this show's not about, like,
getting the very best deal.

It's about getting
the best partner,

and a great partner is gonna
build your business... Exactly.

Far better than 5
or 10 percent points

you might not have
wanted to give away.

So,
we would love to be your partner.

But also, we will blow it up.

But I'm gonna do what
Mark Cuban does all the time.

I'm gonna say you
have to tell us now.

Well, Michael ‐‐ Michael, here.

Just real quick.
I've done this before.

This would be
added to the portfolio.

I'll do 300K for 20%
if you say yes now.

No. No. You can't do that.

It's now or never, Michael.

One Shark is out.

Michael has two
offers on the table ‐‐

one from Blake and Lori
and another from Mark

for his mushroom jerky company,
Pan's.

What Lori and I want to do is,

we think the 300K,
we'd love to do that,

but we need to see 30% for us ‐‐

- 15% for me and 15% for Lori.
- Michael ‐‐ Michael, here.

Just real quick.
I've done this before.

This would be
added to the portfolio.

I'll do 300K for 20%
if you say yes now.

No. No. You can't do that.

Because Mark does that all the
time. It's now or never, Michael.

So, Blake ‐‐ Blake... Why would you
want one Shark when you can have two?

Don't do that. What
are you gonna do?

We are passionate about this.

Passionate about it. Michael,
I do it ‐‐ I've done it all the time.

It's a decision how much
equity you want to part with.

He used the word "portfolio."

You're just gonna be one of
many people in his portfolio.

No, no, the whole point is,

they're all plant‐based
companies,

so we already are
in Whole Foods.

We already have Alyssa's.
We already have Snacklins.

You're not in Starbucks.

And ‐‐ That's not true.

That is not true, 'cause we just got Unreal
Deli... He usually doesn't wait this long.

You better watch... another plant‐based,
we got them into Starbucks.

Well, all I can say ‐‐ One of many
or someone who's gonna focus?

And I'm a vegetarian,
so I live this.

You have to make a decision. You have to make
a decision. And I'm pretty much a vegetarian.

What would you like to do,
Michael?

Wait,
don't force him on... I am!

This is a very big decision ‐‐ his
whole business. Don't force him.

Do you understand
the offers? That's right.

It's his life. Do you
understand both offers?

It's a lot going on in my head right now,
but...

Well, let's just highlight it.

It's $300,000 for 30%

or it's $300,000 for 20%.

And two Sharks that are going to ‐‐
Mycoskie: But you get two Sharks or one.

And I'd say I'm more
than just one Shark

because I'm gonna be
more focused on this.

Yeah, but the difference is,

I've done it multiple times.
We're really like three Sharks

- 'cause we're each 1 1/2
Sharks. - Be truthful, Michael.

Who do you want
to do the deal with?

I love all you guys. I mean,
you guys are all amazing.

You have to make a decision.

Do you want a counter
to Blake and me?

I think we have an undecisive
entrepreneur right here.

Lori,
let him think. Don't worry about it.

It's only the most important
decision of your life.

I appreciate all the offers

and all the interest
and all the feedback.

It means the world to me

for how much effort
I've put into this.

It's very validating,
so thank you.

Just thank you. It's
been a really crazy year.

And...?

Um...

The equity side
is a bit too much

that I'm willing to give up.

Ooh.

So I don't know if
there's a way to ‐‐

What would we do? And then,
Mark, I mean,

I'd love to work with you also,
obviously.

Is there any way you come down a
little bit just to meet me somewhere?

And I have to
negotiate a little bit.

15%. Would that work?

And we can get this
done and start going.

18, you got a deal.

No. I'll do it for 15. 18,
you got ‐‐

Yes or no to 18?

You just made me an offer.
Are you gonna live up to it?

I'll do it for 15.

Mark, you got a deal.

Unh! Unh! I love you guys.

Mark jerked that
from both of you!

Yes! Mycoskie: How
did that just happen?!

Thank you! No!

We're hugging next
year. I'm telling you.

Thank you so much.

No! I love both
of you very much.

Look at me! John: I thought
you were gonna blow that!

Look at me! Look at me! Congratulations,
man.

Michael, Michael, Michael ‐‐
Look at me. You can change your mind.

What just happened?
You can change your mind.

I thought we had a deal!

Thank you very much. I loved it.

I appreciate it. Let's go!

We're gonna crush
it! Let's go! Thank you.

Were you in with Blake
and then you snaked him

and went in by
yourself and said 15?

Yes! Yes! Yes! Greiner: I‐I‐I ‐‐

I was doing whatever it takes.

And then Mark snaked you both?

You just got shitaake'd!

That's it. We did!

I've been on
this path for a while,

and being the sole
entrepreneur for so long,

you go through
so many peaks and valleys,

and...

and this year especially,

seeing your bank
account go negative,

seeing people's lives at risk...

This is the biggest
one of them all,

and just to have this happen...

is extremely
emotionally satisfying.

Sorry.

I invested in Mo's Bows
and Me & The Bees

when they were just young kids.

Now they've grown up,

and I am so proud to see
what they've accomplished.

I strongly suggest that
you don't take on investors

at this time.

I think that mentoring
is more valuable.

When I pitched on "Shark t*nk,"
I was just 11 years old.

I'm now 18 years old.

Mo's Bows has now
done $750,000 in sales.

I appeared as a
fashion correspondent

for the ESPN NBA draft.

I even got invited
to the White House,

where I met President
Barack Obama

and gave him his own bow tie.

That was one of the
greatest moments of my life.

I decided to create a product
that helps save the bees

and uses my great‐granny Helen's recipe,
as well.

Alright.

I pitched my business
when I was just 9 years old.

It's kind of unbelievable
to me that as a 16‐year‐old,

my product has now grown

to have over 1,500
points of distribution

in over 40 states.

My business has now done
well over $3 million in sales.

I want to become a
serial social entrepreneur

and maybe even a Shark one day,
like Mr. Daymond.

Make sure you tell
your wonderful families

that I said hello.

I love seeing you guys,
and I love seeing your progress,

and I can't wait to see you in
person when this whole thing is over

and be able to give
you a big ol' hug.

Thanks, Daymond. I love you.

Mo and Mikaila
are a true inspiration.

I've watched them grow.

I watched them
grow their businesses.

More importantly,
I've watched them

and their family
challenge themselves

and now inspire other people.

And I couldn't be
more proud of them.

For kids who
want to be entrepreneurs,

my advice is to figure
out what you like doing,

find out how you can help
other people by doing it.

Also,
find out how you can make money

by doing that passion, as well.

If you're a kid

and you're looking
to start a company,

look around for things that
could be fixed or improved,

and don't be afraid
to ask questions.

A lot of people want
to create change right now,

and the easiest way to do
that is to mentor somebody.

I have so much hope for our
next generation of entrepreneurs.

They are out here
to change the planet

and reach for the stars,

to educate people and
keep inspiring people,

and they are inspiring me,
as well.

Next up is a way
to protect your loved ones

from dangers in the air.

Oh!

Hi,
Sharks. My name is Kirby Holmes.

I'm from Austin, Texas.

This is my cousin. Hey, Sharks.

My name's Evan Daugherty,
also from Austin, Texas.

And we're here seeking
$200,000 for 20% of our company.

We live in a time when
people are questioning

the quality of the
air they breathe,

with an increase in
smoke from wildfires,

dust storms,

and ‐‐ oh,
yeah ‐‐ the coronavirus.

And while we've all
gotten more comfortable

wearing a filter mask
to protect ourselves

from air pollution
and other threats,

what about the
ones we really love?

Dogs...

- are like members of our family.
- You're kidding me.

My dogs would k*ll
me if I put this on them.

And that is why we
created the world's first

air filter mask for dogs,
called the K9 Mask.

Now pet owners have
a safe and effective way

to protect their pets

from air pollution
and other threats.

It's specifically designed to
fit the shape of a dog's muzzle.

Our N95 and activated
carbon air filters

are replaceable,

so you can wash the mask,
because we know dogs ‐‐

they make a super
slobbery mess. That's right.

The canine mask also
comes in four different sizes

to fit various muzzle shapes.

It features two adjustable
straps...

...one around the neck
and one around the chin

to provide a secure fit

but still allowing your
dog room to pant ‐‐

something we can
all wag our tails at.

Sharks,
who's ready to help all dogs breathe better

with a K9 Mask?

Why?

So, it's a carbon filter?

It's an N95... An N95?

And activated carbon air filter.

How did you come
up with this idea?

So, here's the story.

Five years ago,
I'm on a date with my wife.

We're at a nice cafe.

I go into the bathroom,
and I'm washing my hands.

Young guy walks in,
looks really sharp.

Now,
the problem with that guy is,

he was wearing a
blue surgical mask.

When was this?

This is in 2015. Okay.

And I thought,
if this guy's trying to impress his date,

it's not gonna work.

I thought, you know,
the problem with this guy is,

he needed an air filter mask

that would accessorize
with his clothing.

Well,
I decided to start an affiliate website

with stylish and fashionable
air filter face masks.

Then in 2017,

when we saw that
the California wildfires

were beginning to increase in
volume and intensity... There you go.

And so when I saw on my website

somebody used the
search term on my website

"air filter mask for dogs,"
boom, it hit me.

That's a great idea.

If people are struggling

with air quality,
like wildfire smoke ‐‐

People love their pets.
Okay. I get it in a wildfire,

So, really, it was for fires. but think about
the problem you're gonna have with dogs.

Dogs,
they stake out their territory with urine.

And it's very important
when you're walking your dog

that they check out
who's in town. Sure.

Yeah,
but, Kevin, that's irrelevant.

It's absolutely irrelevant.

Look,
if you're by the wildfires in California

and you're trying
to protect your pet

- and you haven't been
evacuated... - Right.

...what are you gonna do?

Right? 'Cause your pet is ‐‐
This is not a leisure product.

You're talking
about a casual situation

where your dog's on a walk.

We're talking about
a crisis situation.

So, this is crisis masks? Yes.

Now,
that's why we created the product,

but listen ‐‐ here's
the other things

that are happening
around the world.

When there is a red tide,

toxic algae bloom that's
around Florida... Right.

...that is a toxin that
you don't want to breathe,

and you don't want your
dog to breathe. Correct.

So, Kirby, I give you $200,000.

How do I find these
special‐situation dog owners?

'Cause I can't sell to the dogs.
They don't have credit cards.

You go anywhere
that's had a wildfire.

Why don't we ask
them about their sales?

'Cause then they're gonna
either prove us right or wrong.

Exactly. Yeah.
What are your sales?

So,
$204,000 in the last 14 months.

Ooh.

So,
people worried about this during COVID.

Did you get a spike? Yes.

Now,
we did $45,000 in sales last year.

We had $159,000
in sales this year.

I love that you created this,

that you're caring about dogs.

I mean,
you should have them for cats, too.

Yeah, try putting one on a cat.

Well, why stop there?

What about raccoons?
What about rats?

What about
mice? They need masks.

We have thought about the design for cats,
for horses.

We haven't
got into the pricing. Sorry.

How much are
you retailing it for?

How much does it
cost? Retails for $59.

And how much does
it cost landed to make?

Costs us $25.

They're made here? Oh,
you're made here?

So, don't you, you know ‐‐

Another alternative's
you just get a new dog.

Like, that is expensive.

Oh, God. Who is this guy?

I think it's a brilliant idea. I
think it's a great execution.

The real problem I'm having,
the sales aren't enough, right?

You got to explain
to me why sales

aren't dramatically higher.

It would be great if more
people knew about our brand.

We need to get awareness
around this product.

I love the part of
your story about, you know,

kind of seeing what
people are searching for.

But now more than ever,
people are searching for masks,

and I assume
they're searching ‐‐

some ‐‐ for masks for dogs,

but that's not
translating into sales.

And so that's where I have
the biggest problem with this.

No one's buying.

Well, it's up to you to decide.

Is no one buying when you
sell 200,000 of something ‐‐

$200,000 worth of something?

People are buying.

Well, they're buying,
but I think what Blake is saying

is that it's just not buying

in the type of magnitude
that you might expect.

For me, this is just too niche.

So,
I wish you good luck. Understand.

But I'm out.

- Thank you,
Lori. - Thank you, Lori.

The one thing we really
need from somebody here

is to say, "Hey, let's lower
the cost of your manufacturing."

It's a good product,
like I said earlier.

The real problem I'm having,
the sales aren't enough.

So for those reasons, I'm out.

Okay. Thanks,
Mark. Thanks, Mark.

I love where your heart's at.

Like, I have four dogs myself,
and I would do anything

to protect them in a
challenging situation. Absolutely.

But, like Lori said,
I just don't think

that you proved that there's
a big enough market of people

who are gonna pull the
trigger and spend $59 for this.

So for that reason,

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

Thanks,
Blake. Yeah. Thanks, Blake.

No. I'm out.

I think maybe what some of you are missing,
though,

are people feel like their
pet is a part of their family.

And if a member of your family

I think we understand that, is in crisis
and hurting and there's potential harm ‐‐

but everybody's
saying the same thing.

Like, $200,000 worth of sales,
it's not horrible.

I mean, it's proof of concept.
It shows that there's a need.

But I'm gonna make you an offer.

Oh!

So,
the deal is $200,000 for 45%.

Ouch.

Mm.

Daymond,
do you have any flexibility on your equity?

Yeah.

55% for $200,000. Okay.

Now you know where you stand,
but at least you have an offer.

Right. Daymond, I appreciate
the offer. What do you want to do?

Would you be willing
to go down to 30%

No. to be a part
of this with us?

No,
I'm only giving you ‐‐ I'm only asking 45

so that you guys own
majority of the company.

I would normally ask 50%.

'Cause this is ‐‐ I'm literally 50%
gonna throw away my money.

Would you do a
deal at 40% with us?

Alright. You got a deal.

There you go!

Thank you,
Daymond! Woof! Woof! Woof! Woof!

We're gonna help a lot of dogs.

This dawg right here, alright?

Nice job, guys.

Thank you,
guys. We'll care for you.

Congrats,
guys. Thank you so much, guys.

Appreciate it.

Congrats.

Yes! We did it, man!

I can't believe it. We got
a deal with these guys.

Love it!

I'm just thinking,
when I'm in the city

when I'm walking my dog,
my dog is smelling everything,

and I really just thought
about it ‐‐ holy crap.

That snout has been coming
in after smelling a bunch of ‐‐

Yeah, it's kinda gross. Daymond,
can you imagine the first time you try

to put that on a
German Shepherd?

No way that my dog ‐‐

That German Shepherd
looks really pissed off.

They all look pissed.

Next into the
t*nk is an easier way

to achieve peace
and tranquility.

Hi. I'm Aisha.

And I'm Faheem,

and we're seeking $200,000

in exchange for
10% of our business,

Moment.

Have you ever had

one of those stressful
afternoons in the office,

the ones that are filled
with endless meetings,

deadlines, and to‐dos?

I know I have!

And what makes it even worse

is that every time you're
looking for some relief,

everything you're surrounded
by is either sugary or caffeinated.

It would give me the jitters!

Well, that used to be the case,
until this Moment!

Moment is a natural
botanical beverage

that reduces stress

and feels like meditation!

Moment uses a
proprietary formulation

that stimulates the
same alpha brain waves

as does meditation.

We use three primary
active ingredients

to make that happen ‐‐

L‐theanine and natural
extract of green tea.

Number two is ashwagandha,
an ancient Ayurvedic root.

And number three is tulsi,
our holy basil,

an adaptogenic verb.

Moment is the first
product in the world

that lets you drink
your meditation.

And what makes it even better

is that each Moment
has less than 15 calories,

no sugar, no caffeine,

nothing artificial.

And ‐‐ Oh, my goodness!

Each one is
absolutely delicious!

Sharks,
stress is a major problem ‐‐

today more than ever.

And this is the
Moment to solve it.

Man. I mean, what a performance.

Yeah.

So, Sharks, now it's time

for you to take a
Moment for yourself.

We've got all
three of our flavors

for you to sample.

On your left,
you've got Tulsi Lemon,

a drink I grew up
having in Pakistan.

You've got Rooibos Blood Orange,
inspired by South Africa,

which is where Faheem is from.

Is there any
artificial sweetener in here?

There's no artificial
sweetener. No artificial ‐‐

Nothing artificial at all.
This is pretty damn good.

Love it!

Great. That's great to hear.

I love the space of dealing

with the chronic
stress in our country.

Yeah. A company that I'm
a co‐founder of right now,

Madefor,
that's our entire mission.

I meditate every day.

It's had a huge
impact on my life.

Not to be cynical,
but I don't understand how a drink is gonna

give me the same
feeling of this practice

that I've curated
over years and years.

Absolutely.

We found that meditation
helped us be a lot more focused,

a lot more creative.

But all our friends
find it very difficult

to actually get into.

And one of the key reasons
that we started this was

to help people get an
entry point into meditation.

We're trying to create a
habit in a person's daily life,

and every time somebody
actually subscribes for Moment,

a portion of our
proceeds actually goes to

helping kids in school
learn about mindfulness.

Great.

Tell us about you.

Yeah,
where'd you go to drama school?

So, I have been working
in supply chain and logistics

for the last 10 years.

I grew up in Pakistan,

where my dad was
a small entrepreneur.

I was fortunate enough

to get into Harvard
Business School,

which is how I ended
up moving here.

Um...

My dad would've been so
proud to see me here today,

had he been alive.

I, um...

You know, honestly,
it's been a very difficult journey.

My dad was amazing.

I remember when
I got into college,

there was people calling him

and telling him that he
should not send me to college

because that's not
the right decision,

given I was a girl,

but my parents,
they stood up against everyone.

And not only that,
when I graduated from college,

I wanted to pursue
a professional life.

My parents pushed
back against everyone

to make sure I didn't get into
an arranged marriage situation.

I wanted to go
explore the world,

and my parents
supported me through that.

And that's how I ended
up going to South Africa.

Like, I found a job there,
I moved there,

and that's when I met Faheem.

So, I'm from South Africa.

I have always been involved

in this kind of
entrepreneurial space.

My last startup was
fortunate enough

to be funded by
Google and was chosen

as the best startup in
South Africa at the time.

What was it?

It was a consumer tech startup

that helped people share
and discover shopping deals.

Love the backstory.

Now tell the front story.

Now we're gonna talk
about Moment. Awesome.

What is the game plan
for world domination?

Honestly,
we got into the beverage industry ‐‐

we realized that we were
cockroaches in the industry

because of all these
behemoths... That's important.

...and because of the margin structure
and distribution. We totally understand.

That's why we chose

an online‐first
distribution model.

So,
we just launched a month and a half back,

and we've already
done $15,000 in sales.

We've grown 400%

and are on track to do $1.5
million of sales this year.

And what's the price for each one,
and what's it cost you?

Yeah, so, we sell it for $1.69,
excluding shipping.

It costs us 90 cents
to make it right now.

Shipping per can
is about 80 cents.

Do you know what your
customer acquisition cost is yet?

It's a little bit over $20.

$20 customer acquisition cost
on how much of an initial order?

Between an $18 and a $30.

So you're losing
money on the first order.

That's totally right. Yeah.

But we are really driving
towards a subscription model,

which drives us towards
our longer‐term value.

And, honestly,
our purpose is to really

understand the customer
and build that relationship.

Guys, I mean,
I see what you're trying to accomplish.

It's, "Let's get people who
are into this lifestyle excited."

You're selling on
the improvement

that you find in your life.

That's your value proposition.

You know,
that's where the real value comes,

and this just happens to
be the delivery mechanism

that you've chosen.

The question becomes,
is this the right vehicle?

And at $30 every two weeks,
or $15,

that's gonna be a
challenge for me.

And so for those reasons,
I'm out.

The beverage industry

is probably the most
difficult industry on Earth

to gain share in.

Om!

Let's talk with
that for a moment.

We embrace the
fact that it's hard.

Yeah. But wait. It gets better.

Never in the
history of beverage,

from the time of Genghis Khan,

has anybody got a
subscription model to work.

Ever! Never!

Not once.

But wait ‐‐ you're
gonna try and do that.

So, "om" on the first problem,

breaking into an
impossible sector.

And secondly, doing something
that's never been done before.

And you want a
valuation of $2 million

on something
you've just started.

Wait, wait, wait.

Now we go to Greek mythology.

Oh, no. Don't. Oh, no!

We don't have
enough time for this!

Because Atlas was cursed...
We do not have enough time.

...to carry the
Earth on his back.

That's what you're doing.

I really like you guys. We really like you,
as well.

But you couldn't have
come into the t*nk

with more weight
on you than this.

I'm out.

Listen, first off,
I just have to say,

you not only do
your father proud,

but you do all women proud.

Thank you.

Your packaging is beautiful.

I love it. It draws
you right to it.

But for me,
I feel that this concept,

the subscription
concept part of it,

I'm not sure about,
because I'm not sure that people

want to have
delivered their drinks.

For that reason,
I'm sorry ‐‐ I'm out.

Thank you. We appreciate
those kind words.

I do agree that you can
get subscription models,

but in a different way.

I think if you had a
concentrated form ‐‐

I have a subscription
model for turmeric

and a lot of other vitamins,

which I think that you
could concentrate this

and put it in a little bottle
and squeeze it into water.

But I'm not here to change
your business model.

I see there's potentially
a lot of challenges.

So with that, I'm out.

Thank you. Thanks
for the feedback.

Okay, it's me. Whoo‐hoo!

I think that Moment
is an amazing name.

I love that you're taking

a portion of the
proceeds of your company

and giving them back
to helping children

learn to meditate.

I'm also a huge
believer in science

and using science to help
address the chronic stress

that millions of Americans
experience every day.

The problem here is,
I would be a hypocrite

if I said that I
think a drink can do

what everything else I think
in my life has shown me,

and that is,
you got to do the work,

and you got to do the habits
so you can get to a place

where you can address
these stresses of modern living.

So because of that...

I'm out.

Sorry, guys. Okay.

Thank you very much for all
your feedback. Thank you so much.

Appreciate it,
guys. Good luck, you guys.

Congratulations on
what you accomplished.

Thank you. Thank you.

We started this business

because we wanted to have
a real impact on people's lives,

and we're still as excited
as ever about doing that.

So from here on,

it's getting Moment out
to the rest of America.

Next up is a cleaner,
eco‐friendly way

to cook outdoors.

Hi, Sharks. I'm Riki Franco.

And I'm Oron Franco,
and we're from New York City.

We're here asking for $200,000
for 10% equity in our company.

Sharks, summertime means
soaking up the great outdoors

and grilling up a
mouthwatering masterpiece.

But let's face it ‐‐ grilling
with traditional charcoal

we've all been accustomed to

has become more
work than it's worth.

From lugging bags
of heavy coals,

constantly babysitting the fire,

and cleaning up
all this messy ash ‐‐

Yikes.

It leaves you with no time

to enjoy your food
and your company.

So, Sharks,
we reinvented this outdated experience

and elevated it to
a whole new level.

We created...

Prime 6!

Our charcoal is 100% sustainable,
all‐natural,

made solely from
repurposed sawdust.

Our hexagon shape allows heat

to evenly distribute
throughout the grill,

burning longer and
hotter than any other.

And the best part ‐‐
it's completely reusable.

That's right.

When you're done grilling,
simply turn it off,

close the lid to choke the oxygen,
and let the fire rest.

And when you're ready
to get back to grilling again,

you can simply relight it.

And when it finally
does burn all the way out,

there is no cleanup.

Prime 6 is self‐consuming,

leaving your grill
with low to no ash.

Our product is all‐natural
and chemical‐free,

made with absolutely no
nasty fuels or additives,

to help save trees

while keeping you and
Mother Nature healthy

in the process.

So, tell us ‐‐

who's burning to
light up a deal with us?

Whoo!

Good job.

Good job, guys.

Can you tell us
what it's made out of?

It's not compressed coal?

It's not compressed coal.

It's actually
compressed sawdust.

We use only hardwood,

and we compress
the sawdust first,

and then we carbonize
it to create the product.

And what does it cost
versus ordinary charcoal?

We're paying less than
half on any average charcoal

because our briquettes
saves you three times

the amount of
charcoal you would ‐‐

So, the value proposition is,
I don't have to clean up a mess,

I'm paying half as much,
I'm burning hotter.

Price point ‐‐ for the same‐size log,
it's the same price?

Yes. So,
one of these versus the log that I might ‐‐

a 9‐pound log that I might
see at a Home Depot?

Let me answer that.

This 9‐pound actually cost $18.99,
retail price,

but it is actually equal
to 30 pounds of charcoal.

You sell this for $18.99 retail,

and what's it cost
you to make it?

$3.39.

That's not bad.

We currently sell the
22‐pound to Wal‐Mart

for $26.64,

and we sell the 9‐pound for
anywhere from $10.99 to $12.99.

How did you come
up with this idea?

We saw a similar‐looking
product in Vietnam years ago.

So,
had that stuck with you for years?

Like, you constantly talk about
"Remember that charcoal?"

We always talked about it.
We always talked about that.

And, you know, back home,
we used to grill all the time.

Like, this is something
that's part of the family ‐‐

But the Vietnam
story tells me something else.

There's nothing proprietary about this,
right?

We haven't gotten to
that part yet. One second.

You're jumping the g*n. Well,
chop‐chop.

We said, "Listen,
we want to be making this ‐‐

We want to be
taking this process

and making it 100% sustainable."

What we do,
we take the sawdust when it's still raw,

we compress it under, you know,
a few tons of pressure

While it's wet?

No. You heat it up a
little bit. You get it warm.

The natural oils
from that sawdust

are enough to bind
it back to wood ‐‐

denser than any wood
you would find in nature ‐‐

and carbonize it
like lump charcoal.

Do you have a patent?

We have applied for
a provisional patent,

we have applied
for a design patent,

and we have a patent pending

on the hexagon packaging,
as well.

So, how long will this burn for?

This will burn
four to eight hours.

Really? Depending
on the size of the...

Without replenishing.

Sales? Yes.

So, we launched 12 months ago.

We are currently
over $300,000 in sales,

and we're selling food service,
retail,

both in stores and e‐commerce.

And how are you selling?

Are you advertising or
are you going door to door?

Distributors are
most of your sales?

Let me tell you the story.

So,
we basically loaded the back of our cars,

and I went out driving
every day to restaurants,

to stores, basically...

Hustle, hustle,
hustle... selling the product.

Wow.

And then, also, I noticed

you've said the word
"sustainable" several times,

and it's at the very top
of your packaging here.

So what is your mission
with the company?

I don't think you can do anything,
really,

without doing some good,
as well.

I agree.

So the fact that it's natural

and it's made from sawdust
is actually cleaning waste.

There's another
element to the company.

That is, you buy one,
we plant one.

Mm. So we've partnered up
with this amazing organization

called One Tree Planted. Cool.

And for every pack,
whether it's the 9‐pound

or the 22‐pound,
we plant a tree.

And what does that
cost you to do that?

$1 per tree. $1.

You valued this business
at 2 million bucks ‐‐

$200,000 for 10%, right?

Yeah.

You're not making any money
yet after you pay yourselves?

That's not true, actually. We don't
pay ourselves, and we are profitable.

Wait. You don't
pay yourselves? No.

But we will pay for
ourselves starting next week.

You will what?

Uh‐oh! Oh! You're pulling
out a purchase order.

What you got?

This is a $130,000,
six‐figure PO from Lowes

that arrived yesterday,
and this is our first launch.

Good for you. Good for you.

Going next week, making us a
$450,000 company. Okay. That's attractive.

But that's the
beginning of the journey.

You want to make this thing big,
you're gonna accept this offer.

You ready for it? Yeah.

There's a reason they
call me Mr. Wonderful.

You know that. We know that.

I'll give you the
$200,000 for 25%.

Mm.

25%, and I'll tell you why.

This is gonna take work.

You got to open up doors.

I'd rather sell it direct,
frankly.

Yeah. We did 65% direct.

Yeah, I'd rather blow that up

because right now,
retail's chaos.

You learned yourself
how hard it is. Yeah.

But that's the deal. It would
make me get up in the morning...

That's actually one
of the better offers

It is.

It actually is. Thank you,
Mr. Wonderful.

So,
Mark and I did a deal a few years back

with a product called InstaFire.

Are you familiar with it? Yeah.

InstaFire, you know,
was a fire starter.

And it's not a charcoal
briquette like this.

But my problem here is

that Mark and I
do have InstaFire

and... Is it a
conflict of interest?

I'm concerned
about that... Yeah.

...because I don't
want to do a deal

with a company
where you're competing

with the company
we already have.

Because I'm not sure,
I, regrettably, am out.

What you've been able
to accomplish is great,

but it's just not a product
that I can get excited about,

particularly with InstaFire,
you know,

'cause I think it would
create some conflicts for me

in working with them.

So for those reasons, I'm out.

I appreciate it. Thank you,
Mark.

Alright, well,
you got an offer on the table ‐‐

- you know,
Kevin. - Yeah, I mean...

You want to do anything?

You want
to do it together or...?

I don't know. No,
no. Don't need any help on this one.

While you guys think about it,
I just want to say,

I have to be super,
super passionate about it,

and I just don't feel

that personal passion
that you guys have.

And so for that reason,
I'm going to be out.

Okay. Thank you, Blake.

Let me tell you one thing,
Daymond, before you ‐‐

Wait, wait. Wait, wait, wait.

Let's remember that
Mr. Wonderful made you an offer.

If Daymond drops out,
bad things could happen,

because then I have
ultimate leverage.

Three Sharks are out.

Riki and Oron have an
offer on the table from Kevin

for their innovative charcoal company,
Prime 6,

but they have yet to
hear from Daymond.

Think about the jeopardy.

Now,
I'm Mr. Wonderful for a reason ‐‐

'cause I'm wonderful.

But if I know Daymond's out...

I may squeeze a little bit.

But Daymond isn't out. Okay,
Mr. Wonderful.

Why don't you starting thinking
about the only offer you have?

Let me counter. Would
you do it for 20%?

Oh, Kevin!

Okay. And I'll tell you why.

'Cause you don't trust your
own skills to grow the company.

I'm in this space. It
is tough. It is hard.

It's not gonna be
easy to sell restaurants

for another year and a half.

I want to go direct to customer.

I have the channels to do that.

And I'm also Chef Wonderful.

We are not selling retail.

You know why?

There is no retail right now.

It's very,
very hard to get paid.

And you're giving up 35%
margin. That's the problem.

I'd rather capture that margin
for us so I can wet my beak.

You understand. I do. Okay.

There's a lot
of good logic right there.

I mean, I'm out of the deal,

but if I'm an entrepreneur
right now and I just heard that,

I think I might take this deal.

Kevin makes a lot of sense.

Of course he does.
He's Mr. Wonderful.

Daymond, if you don't mind,
I would love to hear...

Listen,
I am a professional griller.

Yes, we know. Really?

I am. But you are not a chef.

I'm a professional
griller. That's interesting.

I came from a neighborhood
where simple and plain,

the person behind the grill

is the closest you'll
ever get to royalty.

That's it. Alright?

So,
I'm gonna match Kevin's offer ‐‐

$200,000 for 25%.

Ooh, decisions, decisions.

Well, then. Remember ‐‐ It it
just "Who do you like more?"

Can you give us a few seconds?

Okay. Okay.

That's what you do.

Kevin, you have a deal.

You like Kevin more?! Oh,
Daymond! Daymond!

Wow! Oh, my God!

Thank God I realized
they were not bright.

I'm gonna sell the out of this.

Congratulations,
guys. Well done.

- Congrats, guys. - Take care.

Oh, my God!

What just happened?!

What just happened?

This is so surreal!

This is insane.

This is surreal!

We sold from
the back of our car a year ago.

I mean,
literally from the back of the car.

And to think that
a year from now,

we will be, you know,
so far ahead,

millions of dollars in sales
and having Kevin on the team,

it's just...

It's phenomenal.

To "Shark t*nk"!

This is the American
dream for us. Yeah.