Shark Tank (2009–…): Season 12, Episode 11 - Episode #12.11 - full transcript

Tonight on "Shark Tank,"

Daniel Lubetzky, the founder

of the groundbreaking
snack company KIND,

returns to the Tank.

Are you or your parents
from Ghana? Yes.

Were you born on Wednesday?

Yeah. How does
he know this stuff?

Necessity is the fairy
godmother of invention.

Who's "eggcited"?

Here it is!

Oh. Ohh!



Oh,
my goodness. Are you kidding?

You think this is
worth $10 million?

Guys, I've doubled the
amount of cash you're getting.

Lori,
are you in on this deal with me?

You're kicking
Daniel to the curb?

Yes,
I'm throwing him under the bus.

I'm using my social
media to back this.

I'm offended. It's stupid.

First into the
Tank is a high‐protein option

for snackers.

Hi, Sharks. I'm Nick Hamburger.

I'm Zack Schreier.

We're here from Chicago,
Illinois,

seeking $200,000 in
exchange for 5% "egguity"



in our venture Quevos.

Sharks,
sometimes it's the snacks we love dearly

that hurt us the most.

When people realize that their
favorite snacks aren't healthy,

they often experience
the five stages of grief.

First, we see denial,
where we just can't handle the truth.

Potato chips are veggies, right?

Then comes anger.

Empty calories! White flour!

After that, there's bargaining,

where we hold on to false hope.

Blue corn tortilla chips?

I mean, come on,
these ‐‐ these have got to be healthier

than yellow corn tortilla chips,
right?

Fourth, we see depression.

What's the point of snacking
when you always get hurt?

And finally, Sharks,
we see acceptance.

We make peace with the fact

that our favorite snacks
will never be healthy for us.

Now, Sharks,
that's where we come in.

We've created the healthy snack

to save people from this
vicious snacking cycle.

Quevos! Quevos!

Quevos are the
world's first‐ever chips

made from egg whites.

This is the snack that's both
delicious and healthy. Wow.

Quevos are packed
with eight grams of protein

and four grams of
fiber in every serving.

And our keto flavors only
have four net carbs per bag.

The days of starchy, fried,
and processed snacks

made from potatoes
and tortillas are done.

Now, Sharks, who's "eggcited"

to crack out of their
shell with Quevos?

Who wants to try some samples?

- Love to. Tell us what we
have. - Absolutely.

So here we have
our two classic flavors,

cheddar and sweet barbecue,

and then two of
our keto flavors,

sour cream and onion
and dill pickle. Taste good.

We have over 500
five‐star reviews on Amazon

out of 800 reviews.

I love them.

Oh,
so glad to hear that. That's awesome.

Tasty and light. Yeah,
I really do.

They have the same amount
of calories as normal chips.

Exactly. But much more volume.

It's better than
a typical snack.

With all that fiber and protein,

you walk away from each
bag feeling much more satisfied.

How long ago did
you launch this?

Yeah,
so we launched this in 2018.

We did a Kickstarter.

We raised $72,000... Wow.

...and started launching
retail later that year.

And what did you sell last year?

$260,000 in sales last year.

Wow. Wow. This year we've done
$660,000 through the first seven months,

on pace for $1.3 million.

And what percentage is
online? Just use this year.

So 80% of our sales are online,

20% in retail,
where we're in 400 stores.

Tell me what it costs you
to make one bag like this

and what you sell them for.

Sure,
so it costs us 83 cents to make a bag.

We sell to
distributors for $1.50,

online for $2.50 to $3.

And then the price that
we see at the end of the day

after referral fees are $2.49.

That's also the MSRP.

The process is all automated
now with a co‐packer?

We manufacture ourselves,
actually.

We have a unique process,

and so we kind of had
to scale it ourselves.

We talk to co‐packers,

and we will continue to
speak with them as we grow.

But so far,
the quotes they've given us

have been up to
two times our cost.

How do you make it?

So we can tell
you it's not fried.

That's the most important part,

but it is a proprietary
and novel process.

So we can't disclose the
details. It's baked, right?

It's not. I'm just wondering

- how two chicken dudes
figured this out. - It's not?

I guess it all started
10 years ago.

So,
I was diagnosed with type 1 diabetes,

and I went from being a kid
who loved to snack all the time,

didn't think about it,
to being somebody

that had to watch every
single carb I put into my body.

And I realized one day those
crispy pieces of egg white

that coated the pan
when I made an omelet,

they crunched
kind of like chips.

I thought, "Hey,
maybe I can make a chip out of this."

And that took myself ‐‐
That's a great call right there,

'cause that crunchy
stuff is good.

Fast‐forward about eight years,
as we're going to college.

I revisited the idea,
called Nick up,

and we got to work on it.

I am the CEO.

We have seven full
time on production.

What does Zack do all day long?

When we really got going
our sophomore year of college,

I took one year off
of Williams College

to basically get this
product from concept

to finished,
shelf‐ready products.

Now,
Nick and I talk about strategy.

I sit on the board.

But you have a different job.

I'm back at Williams
College now.

Are you guys
both out of college?

Or one's in, one's out?

Yeah,
so after my sophomore year,

I dropped out of
University of Chicago.

And so now I've had two years
full time on this business, and ‐‐

You haven't even
finished college yet?

Yeah. How old are you guys?

Wow. 22.

‐22? ‐You're kidding?

Yeah. Nick,
how much money have you raised?

$1.6 million to date. Wow.

Who did you raise that
from and for how much?

Kraft Heinz
invested a little bit.

Come on. Yeah.

How did you get
introduced to them?

We were in their
incubator program.

We were actually the
only pre‐revenue brand

ever accepted
to their incubator.

You two are two impressive...

Very much ...guys.

Zack and Nick,
83 cents cost of production per bag

is pretty high.

What's your ideal price
point that you're targeting?

At the end of the day,
$1.99 a bag

we think would be the
lowest we need to go.

Well,
you're definitely smart to start higher,

because once you start low,
you can never go up.

But if you start high,
you can always go down. Exactly.

So who came up with the name?

We were thinking of
"eggs" in other languages.

We thought of "huevos,"
and then someone's like,

"Well, they're quick huevos.
They're eggs on the go."

And so we combined
"quick" and "huevos."

So it's Spanglish. Yeah,
it's cute.

What about marketing?

How much have you guys been
spending on marketing and where?

So online we usually spend about
$20,000 a month on marketing.

Last month,
we did $90,000 online sales.

So we're seeing a good return.

Zack, I think you guys
probably two of the youngest,

most impressive people
we've ever had out here.

But I don't like the taste.

I know you're gonna do well.

It's just not for me. I'm out.

Thank you so much,
Robert. No worries.

I love this deal.

I mean,
the story ‐‐ the innovation

from the fried eggs,
I love that.

You're not loving
the pricing. I mean ‐‐

No, I don't. I tell you what.

I'd structure a
little differently.

In this case,
I would do this deal for $200,000

and I'd put a royalty
of 10 cents a bag

until I get back $400,000.

Wait, wait, wait for it.

But I would only
take 2.5% equity.

So I get to participate.

You get into the "Shark Tank"
Dome of Desire, as I call it.

I would help you
on digital like crazy.

I would prefer to sell
this direct to customer

than through Amazon.

Work together with my
companies to go direct.

We are killing it direct.

What's your
vision? What do you ‐‐

What would be success for you?

Yeah,
our hope is to sell the company

on a three‐ to
five‐year timeline.

Why?

We've seen in this space,

it can be perilous to hang on to
your brand the bigger it grows,

because the big
guys will at some point

either want to buy
you or knock you off.

I actually don't blame you

for having a very
well‐thought‐through answer.

But the problem that
Mr. Wonderful mentioned

is a serious one.

5% is very hard to justify.

The valuation's pretty crazy.

We came into the Tank
hoping not to give away

too much equity at this stage.

But, you know, it's worth it

to give more than 5%
to have you on board.

We'd be willing to
come up to 10%.

Even for more cash,
you wouldn't go to 15%, 20%?

We could consider an offer,

but, you know,
our goal was to minimize the dilution.

At the same time,
we really want you involved and want you ‐‐

You know,
if a Shark gets involved,

we want them to be motivated
and really bought in, so...

- You guys are
so solid. - I know.

Thank you. Like,
I'm just sitting here.

It's a pleasure
watching you guys.

Zack and Nick,
I'm going to make you an offer.

I'll do $200,000 for 10%.

Thank you so much for the offer.

Would you mind if Nick and
I talked about it for a minute?

I don't mind. Don't
forget the other offer.

Does anyone else ‐‐ Would anyone else like to ‐‐
Greiner: And listen, I will tell you something.

I'm already your customer.

Awesome. I love it.

I think Daniel's a
perfect partner for you.

I don't. I think
Mr. Wonderful is.

I think Daniel's
a perfect partner for you.

For those reasons, I'm out.

Thank you so much,
Lori. Thank you, Lori.

But we haven't
heard from Mr. Cuban.

So the question I have is,
what comes next?

Exit is great, right?

My whole goal when I started
was to retire by the time I was 35,

because the one thing
you can never buy is time.

Right? So I don't
mind that at all.

But I have a feeling that you
guys have more on your mind

in terms of breadth
of product line

in order to make this a brand,
like Daniel's alluding to.

So that's what I'd like to hear.

I think we view egg whites

as really the
cornerstone of the brand.

They let us make
things that are crunchy,

delicious, high in protein.

What else can you
make with egg whites?

Quite a lot, so you can make puffs,
protein cookies.

Guys, you wanted to go talk.

I just want to tell you,
I can't do less than 10%.

That's my floor number, so...

And I'll make it
easier for you guys.

I think you don't have
that one slam‐dunk thing,

so you always have
to get people to sample.

That's gonna be a challenge.

So for those reasons, I'm out.

Well, thank you, Mark. Okay,
thank you, Mark.

You still have two
fantastic offers.

I really like Mr. Wonderful's.
He's a great guy.

And the Kraft
Heinz guys love me.

Just want you to know
that. Good to know.

You have two offers.
What are you gonna do?

Three Sharks are out.

But Zack and Nick have
two offers on the table

for their egg‐white chips,
Quevos.

You have two offers.
What are you gonna do?

So we'd love to
counter to Daniel first

just because of all of
your experience with KIND.

And so we're gonna
counter with 300K

and a line of credit
for that 10% stake.

How much of a line of credit?

Maybe a $200,000 line of
credit or purchase‐order funding.

Can you go up on
the percentage equity?

We'd prefer to come down on
the cash to $250,000 in that case.

Here's what I'll do.

I'll give you
$200,000 investment

and a $200,000 line of
credit for a 10% stake.

What was the other counter?

How about it?
How about you just say yes?

- No, I want to hear the other
offer. - Bird in the hand.

Daniel, would it be okay if we
shared the other counter with Kevin?

Yeah,
of course it is. I don't think so.

No. I give you that permission.

That's true. That's
true. $250,000.

Guys, I've doubled the
amount of cash you're getting.

If you're not
sufficiently excited,

I think I'm going to come out.

How about just 300K for 10%,
none of the credit?

Guys, the numbers,
I'm really doing ‐‐

Can you give me 12%?

How about 10% plus 2% advisory shares,
$300,000?

That's too high.
That's too high.

$200,000,
200K line of credit, 10%.

You'd rather do that than
$300,000 and 12%? Yeah.

We got a deal?

Daniel, how about what
you said prior to our counter?

$200,000,
$200,000 line of credit, 10%?

You got a deal. Alright!

‐Oh, yeah. ‐Good job.

- You guys are gonna kill it.
- You did a great deal.

Well done. Thank you so much,
Daniel.

Thank you,
guys. Looking forward to working with you.

Well done, guys.

Good job, guys.

Alright. Whoo!

That's crazy. We made a deal.

With Daniel, too.

That's unbelievable. Yeah. Oh,
my gosh.

Wow.

We just pitched on "Shark Tank."

We're only 22 years old.

We've been coming up
with different businesses

our whole lives and
wanting to run them together.

And so the fact that we got
to go on "Shark Tank" together

and get a deal from Daniel,

who's a giant in
the food industry,

it's a boy's dream.

In Season 11,

Cassidy Crowley made
a deal with Lori Greiner

for her hybrid teether and baby spoon,
The Baby Toon.

This is a great product.

Let's see what she's up to now.

Right after we
aired on "Shark Tank,"

our sales grew overnight.

Just within the first month,
we had over $100,000 in sales.

We like that.

A few months after
I made the deal with Cassidy,

I went to Hawaii,

and we decided that Munchkin
was gonna be our goal.

Munchkin is one
of the world leaders

in baby and children products.

They were her dream,

and they've been a dream to work with,
as well.

To work with you and my favorite Shark,
Lori,

was a dream come true.

And we are now proud to tell you

it will be in over 5,000 stores.

So exciting!

Munchkin is now
handling product development,

distribution, manufacturing,
and so much more.

I can still design new products,

and I'm on the back of
every Baby Toon sold.

Oh, my gosh, look!

The Baby Toon is now in Target,
Walmart,

and also in online stores like
Amazon and the Munchkin website.

For every Baby Toon sold,

we donate to the International
Fund of Animal Welfare.

Some of our sales will
go to protect animals

and their habitats.

I think Cassidy's
going to set the world on fire.

I think she'll do great
things for humanity

and not only for herself,
but for others.

Now I have more
time to do stuff that I enjoy doing,

like going surfing
and dancing hula.

And it also allows me to come
up with new ideas in the future.

This experience has taught
me that anyone in the world

has the opportunity to
create their own business.

Just getting to
experience all this,

it's just a dream come true.

Next up is a way

to get the freshest
cup of coffee on the go.

Hi, Sharks. I'm Kweku Larbi.

I'm about to introduce you
to the most revolutionary,

most innovative coffee maker

that will change
the game entirely.

- Are you guys ready
for this? - Yes.

Here it is!

Oh. Ohh!

Whoo!

Oh, my gosh!

You think that piece of junk is
gonna change the game of coffee?

You're crazy!

You're probably wondering,
who's this guy

who's been sitting in a
coffee cup for the last hour?

My name's Ross Smith.
I'm a social media influencer.

I have over 45 million
followers across all platforms.

And my mission is to
make the world smile.

Our friend Kweku created
a solution that was so good

that I had to
partner up with them.

And together,
we both created the one and only Brumachen.

The Brumachen is a
single‐serve portable brewer

that makes a hot cup of
coffee at a push of a button.

So no more waiting in long lines

or stalling in drive‐throughs.

I've taken the Brumachen
all around the world ‐‐

in cabs, on boats,
camping, you name it.

It is extremely portable. It is.

And now Kweku will
show you how it works.

Sharks,
pay attention to the screen.

First, you plug it in.

You pour your water in.
Doesn't matter temperature.

You insert any
single‐serve coffee pod.

Oh, wow.

And at a push of a button and
a short five‐minute wait, guys,

you have a fresh cup
of coffee ready to go...

Cool... anywhere, anytime.

Now we'd like to
ask you for $1 million

in exchange for 10%
equity in our company.

And one cup of coffee.

You know what?
It's giving season.

Two cups of coffee.
Two cups of coffee!

There we go. Who's sold?

Well, Sharks,
we're gonna make a brew right now.

Ross, can you please get
me a coffee pod from that tent?

Huh.

Oh, man. What the heck, Kweku?!

Yeah, Ross,
that's 1,000 coffee pods.

That's the amount the average
American will use this year

when they use single‐serve
plastic pods. Bro, this is so wasteful.

It's absolutely wasteful.

It's why at Brumachen,
we didn't stop at one innovation.

We went beyond. We created this.

It's a biodegradable
single‐serve coffee pod

made out of materials like
sugar cane and tree fibers.

Guys,
those pods take 450 years to biodegrade.

This takes 180 days.

We don't got time for that.
Ain't nobody got time for that.

No, man,
that's messed up. Truly.

Sharks, you have the opportunity

to put your money into
something that isn't just a product.

It goes beyond that.

It preserves the planet
for the next generation.

Well, Sharks, you ready to make
Brumachen the next big thing?

Kweku,
are you or your parents from Ghana?

Yes.

Were you born on Wednesday?

Yeah. How does
he know this stuff?

Wow. Magician right there.

That's crazy.

People from the Asante tribe,

they name their children
based on the day of the week

that they're born. Exactly.

So, guys, your coffee pod,
you twist the top off,

twist it in half.
And twist it in half.

Then you take your coffee pod,
puncture it right in there.

Push it in. Then
take the nipple off.

And you pour the water in.

And twist really tight. Really tight. Yeah,
you should feel it lock.

And then we press
the blue button.

Yes,
and then you press the power button.

Tell me,
how did you come up with this?

Well,
I work construction. I'm a civil engineer.

So I was in a field with
the guys in the winter.

And I live in Indiana.

Construction guys,
they're out there in the freezing cold.

And they had to go 10‐minute
drive to get a cup of coffee

and come back to the site.

And that's like 20 minutes.

If you multiply
that by 10 workers,

you're spending a pretty buck on coffee,
you know.

So my goal was,
how do you bridge in between

having a coffee machine
at home and in an office?

But when you're on the
go in between those spaces,

your only option is to buy.

And I was like,
we could make something that could actually

keep that self‐brewing
feature in coffee.

So people can now do
that with our machine.

How much is it?

It's $120 retail.

And why does
it cost you to make? $38.

Do you have a patent? Yeah,
I have a utility patent pending

for both the pods
and the machine.

Can you tell us a little bit

about how did you go
from Ghana to Indiana?

Well, I grew up in Ghana.

At 17,
I graduated from high school,

and I decided I would chase
a career of civil engineering

in the United States.

So I kind of kissed
my family goodbye

and I arrived in United States
with $2,000 in my pockets.

I arrived on campus
in Cleveland State,

and I ended up working a job

scrubbing toilets in the
morning at 5:30 a. m.

To make money to
keep myself going.

Wow. So
what is your role in this?

You're a social
media influencer?

What do you do? So, yeah,
a little bit of background about me.

I over the last eight years have
gotten billions of impressions

and views and over
45 million followers.

You look over here, my 94‐year‐old
grandmother, who's my co‐star,

- and we've been doing it together the
whole entire time. - Oh, wow.

Everything's with your grandma?

Not everything,
but she's my main star.

So I have the ability to push
products and push people.

And that's kind of why I'm here.
But what's your role in the company?

I'm marketing. This is my brand.

I'm using my social
media to back this.

I'm pushing it
with all my might.

For the last week,
I got 100 million impressions

just on my platforms.

Well, then let's get to sales.

We started on Kickstarter.

We sold 600 units in January.

Did you deliver the Kickstarter
units yet? Yes, we have.

You can tell it's
designed by an engineer

because it's all built
around functionality

as opposed to looks, right? Yes.

It looks a little bit like a spaceship,
right?

I always say it looks
like a camera lens.

And that's what's missing.

You did how much in
revenue on your Kickstarter?

$42,000.

Just tell me your total sales.

Okay, $42,000 to date.

That's it? Yes,
that's all we did.

Mr. Wonderful.

Please.

Oh,
my goodness. Are you kidding?

You think this is worth
$10 million? Absolutely.

Now I'm gonna rip you to
pieces. Are you out of your mind?

Why would you think
this is worth $10 million?

Well,
because just my push alone,

I can get 100 million
impressions in a week on my own.

You can buy those. What does
that have to do with anything?

And I can sell ‐‐ I've
already sold products.

Can I monetize your impressions?

Do I get money for that?
You sold $42,000 worth.

No,
because we haven't done the push yet.

That was just to see if
the practicality was good.

Exactly ‐‐ I haven't
even jumped on.

I had a product last
year on e‐commerce

that made $33,000.

I brought it on. $9
million this year.

Single‐serve, take it with you,

portable,
preserve the environment.

That's all good.

But like any product,
it comes down to the actual design.

Like, I started playing with it,
and there's just

too many moving pieces
that you had to explain.

You're asking for $1 million,

and you haven't really
shown us anything

to say you deserve $1 million.

So for those reasons, I'm out.

Appreciate that.
Appreciate that.

I think it's a great product,
horrible design.

But let's put all
that aside for a sec,

because I love the concept,
I love you.

$1 million for 10%.

The challenge when you
ask for that kind of money

and a $10 million valuation

is you've gone out of the
world of belief and theory

and now you're in
the world of proof.

You have to give me
proof that it's worth that.

It's ridiculous. I'm out.

You know what? It's still
an early‐stage prototype.

There's still a long journey,

so your valuation and the
amount of money you're asking

is just very hard.

And I'm actually,
like, sad and upset

because you have
great energy. Yeah.

- I love you guys.
- It's so sad.

I'd love to be,
but you made it impossible for us.

So I wish you the best. I'm out.

It's clever.

I think that

always problem‐solution
things are great,

but today you came in
asking for $1 million for 10%,

and everybody said
sort of the same thing.

You guys,
$1 million is so much money.

‐It's just too rich.
‐You can still do that.

Is there a way
to shift your deal?

So, sadly, I'm out.

Thank you.

You know,
I'm offended at this valuation.

$10 million? That's obscene.

That's ridiculous. It's stupid.

And as a result,
you're going to walk away with nothing.

‐That's ‐‐ ‐And so
it's your mistake,

not mine.

Our goal is to have inventory.

I'm here. I've got
a million bucks.

But you're not
getting any of it,

zero, or any from anybody else

because of your mistake,
your greed,

your decision, your strategy,

even with the Rosco Man
there. It doesn't matter.

Mr. Wonderful,
I don't plan to pay myself

for the next few years
until this takes off.

The goal of this is
not to build wealth.

Who cares if you're
paying yourself?

It's a million bucks. Anyways,
guys, I'm out.

Good luck, guys. Congrats, man.

‐I hope it all works. ‐Good luck,
guys.

‐Thank you. ‐Thanks, Sharks.

Appreciate the opportunity,
too. Thank you, guys.

‐Good luck. ‐See you guys.

‐Thank you,
guys. Appreciate it. ‐

The Sharks will
definitely regret that,

'cause I do believe
that not investing in us,

they have lost a big deal.

They might not know it now,

but they will know it
in the years to come.

Next up are entrepreneurs

who believe they have
something unique to offer

in a very crowded market.

How's it going,
Sharks? My name is Maddie.

And I'm Paul. We're
seeking $150,000

for 5% of our "fizz‐ness."

We all know the
sparkling water category

is bubbling over right now,

but nearly every brand
has the same boring flavors,

uninspired packaging,

and often artificial
ingredients.

Aura Bora is a line of
herbal sparkling waters

made with
sophisticated ingredients,

eye‐catching branding,
and natural flavors.

Every can is filled with
real herbal extracts,

fruits, and flowers.

We like to say it's
just good clean...

...yum! Yum!

‐ ‐Come meet our five

heavenly varieties ‐‐

lemongrass coconut,

peppermint watermelon,

lavender cucumber,

basil berry,

and cactus rose.

We can't wait for you to
dive into those samples

in front of you.

So, Sharks...

"Water" are you waiting for?

Tada!

Whoo‐hoo!

‐Oh, wow, that's very nice. ‐Wow,
it's really nice.

Good. Glad to hear it.

I was expecting yet
another bubbly water.

I'm not into the
taste of cactus.

Cactus is not my thing.

‐Oh. ‐Hey, herbal flavors

can be polarizing.

There's the one you hate,
one you love.

Yes, they can. And that's okay.

‐Basil berry. I like it. ‐Great.

The lavender is incredible.

‐The packaging is
really fun. ‐Thank you.

That's the best seller?
Best seller right now. Yes, sir.

Oh! Oh, oh, oh,
lavender. No, no, no.

Is there a calories in it,
Maddie? Zero.

Zero calories,
zero sugar, zero sodium.

Is there artificial
sweetener of any kind?

Not at all.

‐That's fantastic. ‐Thank you.

‐What's your background? ‐Okay,
so we're married.

I've spent my
entire short career ‐‐

I'm only 26 ‐‐ in branding.

I now work full time for a
tech company in San Francisco

on a branding team,

and I actually take my
marketing tips and tricks

I learn there home

and work as the creative
director for Aura Bora.

I'm on it full time,
so I work on Aura Bora

day in, day out,
weekends, late nights.

Previous to this,
I worked in finance.

So, Paul, I will say one thing.
We get so many beverage deals

in "Shark Tank." Yeah.

I always admire the sheer guts

to come in here with
another beverage.

Before I just go into my
whole cockroach routine,

tell me,
give me one aura of hope,

even the slightest
sliver of a chance

that you can somehow
get distribution.

Yeah,
great question. We're already working with

the two largest natural food
distributors in the country.

We could scale our manufacturing
10 times at our current volume.

And then, finally,
we're getting great velocity

off shelves in stores
that we're sold.

What are your sales? You have
evidence of sell‐through on shelf?

‐We do 100% sell‐through.
‐Where? Where?

We're in 488 stores as of today.

‐Wow! ‐You actually have sales?

So, to date,
we've done $200,000 in sales.

‐Am I ‐‐ $200,000?! ‐$200,000.

We started selling
this product in January.

What's getting
people to pick up?

Are you doing tastings?

Are you spending
a lot on promotion?

So, before COVID,
I was sampling four days a week,

as much as possible,
getting to know the consumers,

seeing their reactions,
et cetera.

During COVID,
we couldn't do that.

So it turned into a bit of
a telemarketing business

for a few weeks where I'd call
and ask as many employees,

"Hey,
is it selling? How's it going?"

So you're a true noodge, right?

Oh,
my gosh. The number of stores

he's dressed up as not
himself to walk into and pretend

he's interested and ask
where the product is...

We need to get honest feedback,
right?

If you're at a trade show...

Do you own 100% of the company?
Have you brought in investors?

Where are you at?

Yeah,
we've raised $700,000 to date.

‐Wow. ‐So right now,

we own 74% of the business
between the two of us.

Okay. So what does
a can cost at retail?

We make that can for 57 cents.

We sell to our
distributor for $1.15.

It's exactly a 50% margin.

And then it sells on
the shelf for $1.99.

We're going to end this
year somewhere between

$500,000 and $600,000.

Next year, though,
we are already in talks

with a number of
big‐box retailers.

We anticipate
finishing next year

between $2.5 million
and $3.5 million.

Listen, you two couldn't be
more appealing if you tried.

I think that you
did great marketing.

I like the name.
It's cute packaging.

It attracts the eye.

But I need to be passionate
about every investment I do.

I'm not passionate about all the flavors,
so I'm sorry.

I'm out.

Okay, listen. Paul and Maddie,
listen.

You've done a
very beautiful brand.

I do think you have a future.

But in order to
succeed in sparkling,

it's a very niche proposition.

And for that reason, I'm out.

What's so great about
this product is we can get

70% gross margins at scale.

We can be profitable in
2021 because it's mostly water.

I actually think you could
increase your price potentially.

I don't think so.
That kills your differentiation.

That's right, yes.

That's your catch‐22. Right,
guys?

‐Right. ‐Yes, sir.

When you're small and regional,

the velocity that you're doing,
it works.

But when you try to
go national like that,

that lid on margins is
really going to hurt you.

And so where somebody
else might have to sell X cans,

you have to sell X
times two or three.

‐Yeah. ‐And just dealing with

that volume is an
incredible challenge.

It's really a hurdle
for you guys.

And so for those reasons,
I'm out.

Let me take a stab at it.

You know,
you were in a long line of beverage guys

that have stood there,
a moment of silence for them.

But it's so crazy.

The chances of success are abysmally low,
unfortunately.

However, I've always wanted
to add a beverage to my portfolio

just because I want
to be miserable.

‐And... ‐After all that?

Here's how I'd do it.

I give you $150,000.

I want 5 cents a can until...

‐ Just what is this? ‐Wait,
wait, wait for it.

Wait for it. Until I
get back $300,000,

then the royalty goes away.

So I double my money
for taking the ride,

and I get 5%.

I want the misery.

I want the misery of
what happened last week.

He wants the nickel.

‐ ‐So...

Kevin, thank you for your offer.

That may be your
worst offer in 12 years.

It really might. Kevin
loves the misery.

You know,
I'm in a different place in life.

‐I like happy. ‐You look happy.

I think you go national,

you may get big numbers quicker,
but it's going to crush you.

So for me,
the road is a little longer.

I think you have
such a unique product,

you can create
the pull through...

Yeah... maybe a
little bit along the road.

Are you giving an offer?

‐So my offer... ‐You
want 6 cents a can.

I'll give you $150,000 for 12%.

‐Okay. ‐Wow! Do that.

‐So... ‐What do you want to do?

Yeah,
so the royalty is an interesting deal.

Kevin,
we thought you might say that.

However,
it feels like not the most efficient way

to use our margin. But
you understand the problem.

I don't have a royalty deal.

That's why I'm coming back to you,
Robert.

Love your offer. What
would you think about

$200,000 for 10%?

I would do $200,000 for 15%.

Okay, um...

It reflects the risk.

Would you do $200,000 for 12%?

If so, we got a deal.

I'll do $200,000 for 15%.

‐Now you got me
excited. ‐Robert!

‐15%! 15%! ‐Wait,
wait, wait, wait, wait!

‐He said 15%! ‐He said 15%!

‐15%? ‐Yeah.

You might not be able to go home,
Paul.

Uh...

‐You got a deal! ‐Whoo!

‐Yay! ‐Yay!

Come grab this. Come grab this.

‐Okay. ‐All right.

‐We want to celebrate. ‐

‐Okay. ‐Ready? Set?

‐1, 2, 3! ‐Go!

‐All right! ‐I'm so excited!

‐Congratulations,
guys. ‐High fives! High fives!

‐Thank you. ‐Thank you, guys.

‐Those are great.
‐Thank you so much.

‐Thanks. ‐Best of luck.

‐Well done. ‐Thank you.

So great to see all of you.

‐Great job. ‐Nice
to meet you all.

‐Thanks for your
time. ‐Congrats.

‐Have a good one. ‐Whoo!

Robert has a lot of
experience in digital marketing.

He can help us build
a direct‐to‐consumer

digital beverage brand. Hey.

On top of that,
he loved Aura Bora,

which means he can
definitely help sell it

and we'll keep his
fridge really well stocked.

Yeah.

Next into the Tank

is a tool that solves
a messy problem

when caring for babies.

Hi, Sharks.

My name is Alina Kravchenko.

I am from Houston, Texas,

and I'm seeking $120,000

for 10% of my company.

While some people
know me as Alina,

many of you parents
will soon know me as...

...your fairy godmother!

Let's get real.

Changing a diaper
can be a struggle.

First,
you try getting your wiggly baby

onto the changing table.

Then while safely holding
your baby with one hand,

you somehow try to apply
the ointment with the other.

Look at my poor mom.

She's getting it all over her clothes,
under her nails.

And she has to do this
up to 10 times a day!

It's exhausting.

Oh, no need to fear.

Your fairy godmother is here!

And I have a magical product

that will make this
problem disappear.

Ready, Sharks?

Bippity, boppity, boo!

Introducing SwipenSnap,

the world's first and only

patented one‐hand
cream applicator.

After attaching it onto
your favorite diaper cream,

simply pull the tube from
the suction cup‐based lid,

squeeze a desired
amount of ointment,

and swipe it on your baby,
all with just one hand.

When I first had my son,
I was a young single mom

looking for ways to
make my life easier.

It's like what they say,

necessity is the fairy
godmother of invention.

So what do you say, Sharks?

Are you ready to swipe and snap

and live happily
ever after with me?

‐Good job. ‐Tada!

‐Great job. Great job. ‐

You know,
I have 2 1/2‐year‐old twins.

I'm doing this 20 times a day.

‐Yes. ‐But I take this...

Yeah, right, Robert.

‐Oh, no, I am. ‐Yeah, right.

Oh, no, no, no,
Mark. I am, absolutely.

But I take this to
my existing cream?

Correct. So you take
the suction cup‐based lid,

place it onto any hard surface.

‐Okay. ‐This is the applicator.

You take this,
and you attach it onto any diaper cream.

So then you pull, you squeeze,
you swipe, and snap.

- And this gentle applicator's super
soft... - Ooh, that's cool.

...and allows you to
control the amount.

‐Ohh. ‐It's very nice.

‐Just like that. ‐Alina,

this is an interesting
innovation.

But what I have
never seen before,

which is very
important to understand

that you have two different‐sized
bottles... Yes. Exactly.

...and they both fit.

Is that something you patented?

‐Yes,
I did it myself. ‐You wrote it yourself?

I did. And I did
all the drawings.

How did you learn
how to write a patent application?

I read "Patent It Yourself"
and put my baby down to bed,

and while he was sleeping,
read through it.

So,
I invented this product 10 years ago.

Oh, wow.

‐10 years ago. ‐Yes.

You must have millions in sales,
right?

Well, I'm a single mom,

and it's been a difficult road

being alone and with very
little connections and money.

That's why I'm here.

So you haven't
sold any in 10 years?

I have. I have sold.

My sales are relatively
low because I haven't ‐‐

Is there a number? I
haven't marketed the product.

What's the number?

$15,000 year to sales.

In 10 years?

No, no, no. I ‐‐

I've been waiting on the patent.

So about ‐‐ it took six and a
half years to get the patent.

I mean five and a half years.

So the $15,000 is over
what period of time?

Yes. I recently ‐‐ well,
two and a half years ago ‐‐

quit my job and decided
to bring this product to life.

But you've sold
$15,000 in two years.

You can't live off that. No.

‐So what have you been
doing? ‐Are you working full time?

I...

I have an investor.

And he hired me part time

to help me run one
of his operations.

How much did he put in?

He put in, as an angel investor,

5% for $60,000.

How much is it?

First run,
I was selling it for $10.

And because marketing
was very expensive ‐‐

‐$10? ‐Yes.

I increased the price to $20,
and people ‐‐

What did it cost you to make it?

$1.85.

How did you sell that $15,000?

Majority of it came
from organic sales

because when I
did a pre‐launch ‐‐

‐Online? ‐Online, yes.

Have you tried to
go into any retailers?

I was approached
by a lot of retails,

but I decided not
to go into retail

because I wanted to make
the product even better.

So I conducted a market study.

Everyone that had
bought the first version,

I called them and I asked them,

how can I make this
product even better?

Because my goal was to
make the best product I could.

So you said, "No,
I don't want to go to retail"?

‐I said not yet. ‐How
long ago was that?

Three years. Two and a half,
to be exact, yeah.

Tell us about your background.

My mom brought me
and my sister here.

None of us knew English.

‐From where? ‐From Ukraine.

And she taught me that America
is where dreams come true,

so dream big.

What's your mom's name?

‐Svetlana. ‐Can you tell us,
Svetlana ‐‐

Can tell us a little bit about
the journey of coming here?

I was grow up,
and my kids grew up in communism time.

I knew about America.

I was thinking about
this dream for my kids,

for my kids' opportunity.

It's a road,
very long road to come this country.

No family, no friends,
no speak English.

I'm so proud about my kids,
proud about Alina.

I ‐‐ I'm ‐‐ It's a
dream come true.

You know,
I come from a communist country.

‐You understand. ‐I understand.

You know,
my dad was the youngest of 15.

‐Wow. ‐

And people used to spit on him

because he wouldn't
join the Communist Party.

‐Oh,
wow. ‐He got thrown in jail 22 times.

And the last time
he got thrown in jail,

they said, "If you come back,
you will never come back."

Oh, my God.

And so we crossed the border,

we come here,
and we have nothing.

Like,
we had nothing. But my dad was happy.

He would rather have
nothing but an opportunity.

‐Yeah. ‐Obviously, I think

it's one of the greatest
countries in the world.

‐We are same page. ‐Yeah.

Okay, Alina,
let me take a stab at it, okay?

It's got patents,
which you wrote,

which is ‐‐ was the first
hint that you're not nuts,

because that's hard to do.

But I wish you had a partner,

another fairy sit beside you

that was pure executional
skills on digital marketing.

Mr. Wonderful,
I am that second person.

‐My background ‐‐ ‐Well,
you might be,

but you haven't convinced me,
and I'm the investor.

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

It's obvious that
your drive is unbelievable.

‐Thank you. ‐I mean,
I can't tell you

how many people came up here

and spent $50,000,
$100,000 to get a patent.

You read a book
and got it on your own.

But my issue with it is,
as a new dad,

I don't know if I would
use this for the baby.

I could get around
all the other stuff,

but I got to believe
in the product.

For me, on this, I'm out.

Does the patent
cover the ability

to fit with that double thing,
or does that already exist?

Yes. No, it does not exist.

This is the only patent that has
that double‐threaded technology.

That's what interests me.

I don't know, Lori,
if you're interested,

but if you're interested,
I would try to

commercialize that
while you figure out ‐‐

I'll tell you what I'm thinking.

And if you want to, you know,
go in on this together...

I think what you did was smart.

Oh, thank you.

I like the quality of this.

I was thinking this
is a licensing play.

‐Yes! ‐So, Daniel, you and I,

$120,000 contingent
on that the patent...

‐Okay. ‐...will
allow us to license

this technology
for other things.

‐For 33.3%. ‐Yes!

‐We'll be 1/3
partners. ‐Yes! Really?!

She's going to fly away.

Oh, my God, I mean, that's ‐‐

Yes. Well,
do you want to think about it?

No, no,
I do. I do. Let's negotiate.

I'm going to try to make
sure that you understand

what the offer is from my side.

Yes. Got it.

What I'm most interested
is in commercializing

the double thread in a
variety of ways. Got it. Got it.

Contingent on us
being able to do that,

then I would be in for
the journey of 33% of this

and 100% of any other
uses for the double thread.

‐You want 100%?
‐Of the double thread.

Okay. You don't want to do that.

Two Sharks are out.

Daniel may be interested
in partnering with Lori

for Alina's diaper cream
applicator SwipenSnap,

but he wants 100% of
the patent for other uses.

What I'm most interested
is in commercializing

the double thread in a
variety of ways. Got it. Got it.

Contingent on us
being able to do that,

then I would be in for
the journey of 33% of this

and 100% of any other
uses for the double thread.

‐You want 100%?
‐Of the double thread.

Okay, Alina,
I want to throw a wrench into this.

I think the innovation is
around the double screw.

I get that.

All this contingency on
this contingency on that.

I'll make a deal with Lori ‐‐

Wait a second. Hang on.

I'll go 50%. I want 25%.

I want her to have 25%.

I want us to be 50/50
partners with you.

I'm particularly
interested in licensing this

and working on that deal.

And you're kicking
Daniel to the curb?

Yes. I'm throwing
him under the bus.

Listen,
I agree with the licensing

because I think that
this could be used

in a lot of different ways.

Lori,
are you in on this deal with me?

Daniel, I would have loved
to have gone in with you,

but, Kevin, I'm in with you.

All right. Alina,
you got two Sharks, Lori and I.

What do you want to do?

Could you take a
slightly smaller bite?

Listen,
if we get you a licensing deal,

you're just gonna sit back and watch
the money roll in, the royalties roll in.

You don't have to do any
work. We're good at what we do.

Are you ready to go?

Kevin, would you consider

just a slightly smaller,
smaller bite?

Why do you care?

Yeah, you shouldn't care.
You're not selling anything now.

You have the power of two Sharks

that have done licensing deals
their whole lives.

We're going to, like,
get this done for you.

You've had no sales.
It's been many years.

Like, this is bird in hand.

And the thing is,
what you created

and what took a long time
to get out...

It's so good.

...is that you brilliantly got
these patents of value.

‐That's what happened. ‐Right.

But now we're going to
get to work and see if we can...

Okay... monetize it.

This is what I wanted.
Yes or no? Say yes.

I wanted both of you,
so I think ‐‐

You want to do it? Yes!

Okay! Yes! Yes! Yes!

‐Yay! Get up, Kevin.
‐Ohh, my goodness.

I love you so much. Oh, my gosh.

‐Congratulations.
‐Oh, my gosh, Lori and Kevin.

‐Spasíbo! ‐I am so excited.

‐Let's go make some money.
‐Let's go make some money.

‐Yes. ‐Exactly.

It's exactly what I wanted!

‐Oh, my God! I'm so excited.
‐Wow! Wow! Wow!

Even though I gave up
50% of my company,

I know that Kevin and Lori
are going to connect it

to the right people
and get it out there,

and that's what
I was looking for.

So I feel great about it.