Shark Tank US | NuMilk Score An Impressive $2M Deal

[Music] burst into the tank is a better way to enjoy plant-based milk [Music] hi sharks my name is ari tolwin and i'm joe savino we're from new york and we're seeking one million dollars in exchange for five percent of our business wow you got our attention sharks milk today means something totally different from what the milkman used to deliver to our homes sure some of us still drink cow's milk but most of us have switched to almond milk oat milk or even hemp milk butt sharks that comes at a price most of those milks are hyper processed filled with gums preservatives and fillers galore well sharks that's where we come in move on over cow's milk because making fresh dairy-free milk just became utterly easy introducing new milk we built a custom machine for grocery stores where shoppers can make delicious nutritious pure dairy-free milk at the push of a button we use the best ingredients organic almonds from spain for our almond milks a blend of organic cacao vanilla bean and maple for our chocolate milks and a whole lot more our new milks are homemade without the mess or the fuss we're on a mission to bring plant-based diets and zero-waste lifestyles to the world so sharks i just have one question who wants to milk this deal for all it's worth sharks in front of you are a flight of delicious dairy-free milks for each of you to try but before you do so mark you've mentioned your dairy free come on up and make some fresh milk for yourself sure so you can select almond milk or oat milk i'm gonna go with almond milk cause i've had it so i'll know what it tastes like in comparison great so just press that almond milk button and then start on the bottom so the machine is actually making it fresh it's not a concentrate or anything else in there it's taking pure organic almonds from valencia and making the milk right now that's fast that's cool the almond milk is very good it tastes nothing like the store brand the milk i just made is incredible you can tell it's fresh almonds it's incredible just to understand what's in the machine give us the choices so the first thing about new milk is that we're uh really a food tech company and we built a platform right now we have almond milk and oat milk in there but we could do cashew we could do hemp if that becomes popular we could do sesame it's really limitless so how long does it last and what would be the expiration date on one great question it'll have a seven to ten day shelf life and it has to stay in the fridge i mean i think that's the thousand pound gorilla in the room you know coming to the shark tank you want to think big right right you're asking for a million bucks obviously you need capital to build out and lease these machines to all the locations that's a different kind of business model because they require maintenance they require you know the capital to build them yeah and then you also have to get the space inside the grocery store to give you what looks to me like about 10 square feet barbara you're a real estate mogul you understand the value of square footage i'll tell you exactly what is in midtown manhattan for a street location it's 3 000 a foot in a primary location yep how big is that so it's it's eight square feet the machines average fifty thousand dollars per year per machine and so when you think about it that's revenue in revenue yep and it's unmanned and we pay no rent at all what does a machine cost uh the machines are thirty thousand dollars each they'll come down to fifteen you know guys i think it's a genius idea number one you're reducing grocery stores perishable loss right number two is you're attracting new customers i like that uh that whole concept but were you in this area before in traditional business like tell us a little bit about yourselves yeah so uh i come from the food and beverage world before this i did aviation catering for commercial jets private jets so if you guys flew to new york you've eaten our food then i started my own co-packing uh company doing food and beverages uh after that i left and i started this with ari i'm also a second time entrepreneur in the space i had a brand called happy tree maple water i had national distribution where about 8 000 stores did you ever exit on that water company uh no i shut it down actually after we started this i have a question what would mark pay for that bottle of almond milk that he took away yeah you'd pay two dollars for the for the bottle that's a one-time uh charge and if you brought it back you'd pay 3.99 to refill it okay it's 3.99 for the almond milk two dollars for the bottle how much goes to the grocery store yep so uh the grocery store takes about a third all right so how much have you raised uh we've raised 12 million dollars wow what was the last valuation our last valuation was 40 million pre-money so we've actually negotiated with our investors in advance to give you uh a shark appropriate deal guys is there a bigger picture here this is obviously a big picture yes hit him joe so this is our countertop device and this is the bottle that goes with it wow we took our grocery machine we shrunk it down so it works on your countertop so you can have the best that right there is a necessity for the family i think what is that going to cost the consumer it's gonna be about 85 landed that's your cost what was your plan to sell it to them for then 1.99 can you show us how the small machine works this is actually just a 3d rendering prototype okay guys let's get into the numbers just the basics please top line bottom line top line bottom line last three years yeah so 2018 40 000 of revenue one machine partial a year what you lose spent a lot on r d so we spent about two million dollars in r d in 2018 losses were two mill correct approach 2019 320 top line we ended the year with 10 machines how much you lose and then we spent three million dollars on our so five million total losses so far now we're getting to some critical mass here yeah what happens in the third year so third year is this year uh we would have ended the year in about a six million dollar year but because of coronavirus our launch with kroger some growth with whole foods launch with gelsins and some other regional retailers we're delayed so what do you think losses will be this year this year it's going to be about 2 million dollars as well mostly seven mill in the ground so far in the bank three and a half million you projected six but where do you think you'll land now uh this year we're gonna be like 400k by the end of the year in sales yeah wait wait i'm sorry wait whoa whoa you said you projected 6 million for this year but you feel you're going to end at 400. yeah so we wouldn't we would end it with 100 machines at the end of the year can i get your attention just for a moment please i've been sitting here listening to every word i still don't get it and i'm paying attention like crazy ash i'm sitting here feeling like i'm back in second grade failing again because i don't know what the hell the teacher is talking about yet again you talk so much that i can't grab a single word i'm sure you've got something good there i don't know what the heck it is but i'm out i'm confused too i'm out [Music] lori you can help us bring this to millions of people around the world and i see you may be struggling a little bit but i think you want to do it problem for me is you know you only have so much time in here there's a lot to explain about your business model right and i don't think we've gotten a lot of those answers out you're asking for a million dollars for five percent you're losing money this is a prototype so you don't even know yet we don't actually have five of these uh countertops in the field but they're stainless steel models for coffee shops you came in asking for a pretty hefty sum it's just not investable for me right now i'm sorry i'm out joe what do you sell the stainless steel commercial unit 6.99 and what do they cost you to make 300 bucks 300 bucks all right guys look i thought you were nuts when you first walked out here but now i have a different opinion you did a very good job in presenting the opportunity i don't agree with my fellow sharks i get what you're doing it's extremely interesting i'm gonna make you an offer i actually think there's a huge fundamental demand for your product and i love watching marco nuts over uh plant-based stuff you know i'm a modified vegan i only eat vegan on tuesdays seriously yeah the structure is difficult here because you've already raised so much capital i would stick this in my venture debt fund and i'd do an offer like this i will loan you a million dollars at nine and a half percent interest for three years that will cost you eight thousand a month and i will take five percent equity that you offer you know i don't know what mark's gonna do but it gets you into my sphere of the shark world and you can talk to any of my entrepreneurs i do a hell of a job on digital for them so if you're going after consumers i can help you yeah so first of all i really appreciate the offer um we do believe you could bring a lot of value to the business it's not what we had in mind uh when we walked in here so we want to at least consider it's an offer absolutely it's great believe me i was not planning on giving you a million bucks when i first saw this thing [Music] okay so here's the thing so you've got three million dollars left in the bank for two products i obviously love the stainless steel version that you're putting in coffee shops right now i think that'll sell like hot cakes at home i think you'll sell a million units easily you have it priced at 6.99 i think could be priced at 8.99 and given your margin at that price you make 500 a unit that's a lot of money but with just three million dollars in the bank between marketing right and inventory and receivables and everything else you're not gonna have enough cash so you guys know coming in you're gonna have to negotiate so let's just cut to the chase five percent is not enough can you do six percent [Music] no what do you want okay guys here's my offer i'm gonna give you two million dollars you only ask for one i'm gonna give you two million dollars one million of that is going to be for seven percent equity the other million is going to be a loan at three percent interest but i get an additional three percent of stock as advisory shares or straight up equity but if you don't use the loan you don't have to give me the three percent equity for that loan so in total if you use all the capital it's two million dollars for ten percent do you have a little bit of flexibility we really want to work with you you can help us grow this it can be awesome a major global success you have a little bit of flexibility that was my flexibility it's a great offer mark we love it [Music] it depends how much you want to change the world is one percent going to change flexibility we're at five seven can't do six you came in asking for a million and now you have access to two million [Music] you got a deal yes sir i appreciate it guys joey you spoke up at the right moment congratulations guys good luck with everything we accepted congratulations but the work starts now exactly right we just did a 2 million deal with mark cuban he beat us up a little bit at the end but we couldn't be more excited to work with him and continue to grow new milk to be a great success you

Channel: Sony Pictures Television

Views: 6,976,374

Keywords: Sony, 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: t576COxzrDg

Length: 11min 30sec (690 seconds)

Published: Sun Oct 24 2021