Shark Tank US | Bleni Blends Entrepeneurs' Counter Offer Leaves The Sharks Speechless

next in the tank is an innovation in healthy Vending [Music] hi sharks I'm Peter Shapiro and I'm Stuart Shapiro and we're based in Havertown Pennsylvania and if you can't tell already we're brothers clearly good genes running our family very attractive thank you man we're here today seeking 250 000 for a six percent equity stake in our company Blends sharks traditionally if you only have 60 seconds between meetings or before your shift starts limited time can restrict your options to standard vending machines chips and a soda candy and an energy drink that won't keep the bloody Bros running for long no it won't the future of food is unattended retail introducing blenny Blends a fun and interactive smoothie kiosk that makes real fruit smoothies with no artificial flavors no preservatives and no added sugar and what about lactose and gluten no waste do choose one of our 16 ounce Blends tap your card that's it it's like picking fruit from a tree and putting it in a blender yourself it also makes delicious clean label iced coffee it's like having an automated smoothie shop and just 12 square feet so sharp who's ready to come on a smooth ride with us because all's well that blends well so sharks in front of you we have some samples first is our coffee bean blenny so that is made from oat milk real coffee this is really amazing yeah it's very sweet what does it have just regular sugar in that one I love it it's a real thing there's no added sugar in the Mango Tropical no in the fruits we have no attitude that is awesome wow thank you you guys brushes it for yourself or you buy the pouches so they're proprietary Blends they're aseptically packaged in bags so they're actually shelf stable we have manufacturers we have three facilities United States that package it for us we didn't want something as refrigerated we didn't want something it was frozen how long you've been doing this so where are you guys from and you put this together I'll tell you about this so we both have business backgrounds we grew up near Philadelphia we really wanted to go out and be entrepreneurs so we got into real estate and one day I just kind of was looking on I was like oh my God there's this whole new world of unattended retail that hasn't been tapped it and that's when Peter called me late the night like I found it so we were introduced to this product we ended up flying up to Canada seeing a prototype within a few weeks we had negotiated for the exclusive rights uh to the us so you guys are a licensee with exclusive rights only to the United States correct for the for the life of the pack and how many years are left on the patent fifteen fifteen knots so you already have them in place what's your busiest one what are your revenues how much does each of them produce so we have 41 of these out in the market we have 20 more in our warehouse that just got delivered so what's your most prolific of your 41 how many does it make a day so it does about 8 000 a month wow yes we can either have our team they'll actually run it day to day and we own the machine then we have a program where we sell that machine to the location then they buy the fruit from us and in perpetuity like you always like it's wonderful world we're making money buy the fruit because it's packaged in a proprietary we own the entire supply chain what does one smoothie cost five dollars 25 cents on average on average uh the cost of goods sold is Blended a dollar forty okay so five bucks basically cost you guys a buck 40 but then you've got either commission that you're paying to the host tell us about the economics the maintenance course and Personnel right now typically a large Food Service Company will come to us we give them 15 for them to take care of it elaborate them that like you mean an Aramark or a series you already do we already do in 2021 what were your revenues and your profit so we started in 2020 we did ten thousand dollars 2021 we did 275 000 and then year to date it was 465 000. we're on track to be at least one and a half million nice growth we're here we've put all the money into it we've been purchasing all the machines ourselves so each machine costs uh 19 500 and then we sell it for 30. so when we actually sell it we're looking had a profit of 35. so is my money getting tied up in the capex of the machines because you're asking me for 250 000 for six percent all right routines and more machines so you actually manufacture them I mean the person that owns the patent is overseas and they're handling manufacturing right now we also added it into our contract at any point we can buy the all the IP and the patent and then bring manufacturing somewhere else okay what is that price four million dollars whoa you guys have any performance requirements where you've got to buy X number of units or you lose it correct yeah what are those so for this year we have to 80 machines which we've already ordered and done uh then I do a hundred more for the following year so 81 year 100 the next year 120 the following 120 following yeah is there a point where there's a cap on it and you don't have to hit that anymore currently we don't have a cap in there because our goal would be to get that IP we want to keep the blenny brand that's what we're really growing we want to become a brand that everyone knows all right guys look what I don't like about this deal for me is the capex on the machines the 19 000 if there was a way that I could invest in the bags that's interesting but the curse of this is the capex on the machines and for that reason I'm out you know we we have everything in in this um Stuart has sold this house and he lives in my house Stu and I personally have put 1.2 million wow thank you guys sold all that real estate are you taking salary no we're not taking salaries all right guys my general thoughts is I think this is brilliant the stuff tastes amazing but the fact that you are actually using another person's product where things happen you may not hit those numbers you're not in control of that this is heavy cash intensive as well I don't know if I'm that comfortable with you having a license from somebody else so with that I'm out thank you guys I get pitched self-service food this or that every single day there's huge amount of risk in terms of technological obsolescence if something better comes along you're still stuck that's really scary for me as an investor so for those Reasons I'm out thank you Mark so listen Guys these were phenomenal and honestly phenomenal I was talking with my fellow shark Daniel who you know he happens to know quite a bit about the entire food space for me it's going to be a very Sharky offer because I'm very concerned about this it's just gonna require from my team a ton of investment to help you so I would only do this for 35 percent wow it's gonna cost something right and I like to do it with Daniel it will cost to have Partners like this so 250 000 for 35 if you get two sharks what do you guys say [Music] vending machine blenny Blends but they want 35 of a company for 250 000 a much bigger chunk than the six percent they came in offering you are both behemoths we realize that Stu and I can put in the grid I promise you would you do the deal for 15 no way yeah I wouldn't do it for 34 I'm telling you guys this is gonna be it's a firm deal it's 35 it's not that I'm going to be a tough person it's just that I I know this is going to be so much work you gotta make a decision I think 35 is a lot to ask for having already put it real quick think about how you feel if you walked away without a deal I've taken all of them we've done this I think 35 is a lot to ask can you come down at all from 35 I mean I think that's I can't because it's just going to be determination no I agree because I think the two other things any chance you're doing a deal for 35 yes or no foreign with a 500 000 line of credit million dollar a lot of credit no so we do 35 for 250 000 and subject to us confirming that everything you said is as it is we'll give you a 500 000 line of credit I'm good with that thank you [Music] the two of you are our dreams we love we love you we love everything we gave away 35 which was a lot more than we intended to but we understand uh you know like the famous line that Mark always says you had to have a little bit of a watermelon than just 100 of the grape

Channel: Sony Pictures Television

Views: 383,665

Keywords: Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful, shark tank moments, shark tank deals, shark tank pitch, shark tank best pitch, kevin oleary, mark cuban, lori greiner, Barbara Corcoran

Id: Hn_T8krwNDE

Length: 10min 18sec (618 seconds)

Published: Mon Oct 30 2023