Shark Tank US | Can Must Love Get A Deal From One Of The Sharks?

foreign next up is a healthier version of a favorite Indulgence [Music] hi sharks my name is Hannah and I'm Molly we're best friends from Los Angeles California and we're seeking six hundred thousand dollars for seven and a half percent equity in our company look at this table of ingredients over here they're cheap oils like canola and palm and artificial preservatives and flavors not to mention monoglycerides diglycerides things I don't even want to try glycerides and you won't believe what these ingredients are for medicine paint I Got It Cosmetics no it's ice cream gross right ice creams marketed as better for you often have unwanted ingredients even ingredients made from petroleum wood pulp and even beetles gross right that's why we created a line of plant-based indulgent treats made with simple ingredients must love but must love is more than just dairy-free ice cream it's simply good for you fun that comes in pints like peanut butter swirl or Molly's favorite cashew cookie or Hannah's personal favorite Snickerdoodle dough and Novelty bars like dipped crunchy peanut swirl or dipped vanilla which tastes just like a chocolate frozen banana but how do we do it we start with a simple base of bananas or oats and sweeten with real fruit and from there we add in all the Crave worthy stuff that you really want in your nice cream but sharks we didn't stop there this summer we launched sprinkles they're playing they're plant-based non-GMO and go perfectly with our ice cream even the vibrant colors come from plants must love is bringing plant-based Indulgence to your family's freezer pantry and more so sharks who's ready to fall in love with must love so please dig into your samples and I'd love to tell you about what you have from our banana line we brought you our signature dipped vanilla bars and also our cashew cookie pie which is what about the chocolate around it they're dipped in chocolate but it's vegan there's no vegan there's no Dairy oh great that's very good thank you very banana yes you must love bananas I thought it was going to taste terrible it's pretty good Kevin from you that means a lot thank you thank you I just want to say I'm not vegan at all and I've eaten so much of this I feel sick it's just really scrumptious about you yes thank you um so we're actually best friends who met an undergrad at Berkeley we've been best friends for 15 years both our parents immigrated here from Korea and are started their own businesses really came here for their American dream and after we both got our mbas separately I was at MIT you're an MBA from MIT yes what was your specialty or Focus I focused on operations and I focused on marketing geez so you're asking for six hundred thousand seven hundred percent that's a pretty punch evaluation so I'm assuming now this has sold like hot bananas we launched in 2017 we had 35 000 in sales and since then we've grown double year over year year to date we've made one million dollars wow we're gonna end this year 1.7 in revenue and that's a very conservative number what's your profit we're running a loss at about four hundred thousand dollars uh oh wow okay so why so why you're running a loss so the food industry um I'm sure you're all aware you know it's a really cash intensive business you know when you get into a grocery store to First pay for that marketing to be able to be there and to reach those countries you're going after the frozen section hard to displace other products yes we've fought to The Nail for every position we've been in and the the Frozen space is very competitive where the growth has been is dairy free and novelties so that's really our sweet spot of where we're hitting and we have kept our Shelf space in all the new doors what stores you in we don't even know tell us tell us what stores you're in what does it cost and what does it cost for you to make it we're available nationally at Sprouts Farmers Market and as well as in certain regions of Whole Foods this year we launched in Costco we tested with them last year and it was wildly successful blew them out of the water they retail for 5.99 on shelf typically and our cost of goods is 180. so how much money have you raised if any if you we both invested two hundred thousand dollars of our own money right off the bed for you okay you're serious we also raised in the last five years 1.4 so from a series from friends and family and then angels and what evaluation was the one for raised at we're actually in a seed round right now that's why we're here we're here we're raising at an eight million dollar valuation so this is part of the seed route okay guys how could you come on Shark Tank you've watched the show I present yes right knowing every single deal in the history of Shark Tank has been negotiated do you not think you're going to have to negotiate yeah we're ready to negotiate and we've spoke with the other investors who have participated in the seed round and they're very excited for you guys to be so excited that they gave us the exact offer that everybody else is going to get well we're here to get to know you you're here to get to know us no you've known us for 13 years you know to come to us and offer us the same that you're offering the streets and at least show us the respect of knowing where the value is that we're going to bring I'm out thank you we really appreciate the feedback there's two problems you're not worth eight million bucks you're also asking for 600 000 part of your strategy on Shark Tank you have to decide how much you're asking for yes yes you're in the the top quartile of ask it's too much for me I'm out I just want to say I've invested in a business like this actually on Dragon's Den it was exactly as you've got here in essence so it was frozen dessert what happened to that business whilst the sales were going up but sadly a margin reduced because as we got into Whole Foods Costco and others and all the supermarkets they wanted to have the product two for one they want to have the specials they want to have the end cap every single quarter another marketing initiative when the brand then started to actually go down we had to invest more we ended up with less than three or four percent net margin every single year what ended up happening was that the manufacturer was making more money than we were and I got out I almost I just got my money back so just because of that of my experience I'm out sorry guys the problem I have looked the products are good they're just not differentiated enough I get that they're clean natural wholesome ingredients yes but there are multiple products and the number of products that that meet that criteria and check that box is growing very quickly there's not that one trigger that makes someone say okay I have to try this for that reason I'm out thank you honestly I think we've captured new customers with very slowly let me tell you what I think okay because I really know this space actually because I did a deal a year ago with frozen farmer and we created what we call frobert which was a combination of sorbet and ice cream you know everybody up here at the time said oh my God brutal space you're never gonna make it you remember that and it was no actually he was wrong it was a hard road but we're gonna hit 20 million in sales this year but you are so competitive with my frozen farmer what we're already doing that I would not be being fair to her if I invested in another ice cream line and so for that reason I know we so appreciate that thank you so much thank you [Music] for 200k is a flyer I'm going to try it for two and a half percent no I would have asked for 15 yeah they would have laughed at you no they would have said Mr Wonderful I'll do the deal and I'd be up there right now just like what alternate universe with this there's only one Mr wonderful thank God for that

Channel: Sony Pictures Television

Views: 418,523

Keywords: Sony, Sony Pictures Television, 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

Id: xXI8qv9miyA

Length: 8min 54sec (534 seconds)

Published: Mon Apr 17 2023