The Sharks Hate Oat Haus' "Exit Strategy" | Shark Tank US | Shark Tank Global

next up is a new version of a tasty [Music] butter what's up sharks I'm Ally I'm Eric I'm Ari and we're o house we're from the beautiful city of Philadelphia Pennsylvania and we're here seeking $375,000 in exchange for 5% of our business oat house sharks are you sick of dry Bland boring granola that just tastes okay seriously though sharks when was the last time you looked in your pantry saw the same old spreads that had been there since 1989 can you say boring sharks that's where we come in say hello to granola butter the next generation of granola booah baby what's granola butter you ask it's the world's first oat based spread made with oats flax olive oil maple syrup spices and it'll blow your mind world class baby let's go our granola butter has the texture of a nut butter the tzing taste of granola and best of all it's glutenfree it's vegan and it's nut free that means it's perfect for all the vegans the celiacs folks with allergies kids in nutree schools everybody's welcome to the oat house come on eat it on yogurt on toast in a smoothie on a spoon this is the biggest Innovation The Nut Butter category has seen in years and we're on a rocket ship going straight for the moon baby so sharks who's ready to stir up a deal one out at a time if this nothing thing doesn't work out you're going to be dancers it's been so can we open up and try we have so sharks in front of you have our four core flavors you have our original with cinnamon and cardamom you have our vanilla which tastes like a sugar cookie you have our chocolate which reminds me of brownie batter and our blueberry which is just like my grandma's blueberry crumble um at the oat house we want to bring the play and fun back into eating and as the chef My Only Rule is that there's no wrong way to eat granola butter first of all when you open it the smell is fantastic thank you I really like the yeah it's just got a great like kind of toasted caramelized granola smell yeah and it tastes like a peanut butter exactly is it supposed to yeah it's supposed to have that texture of the nut butter and you kind of use it the same way um but it has that taste of gr a lot it's almost soup like I mean is that going to be a push back from consumers yeah so it's slightly more spreadable and drizzly than uh normal peanut butter is that intentional or is it because your ingredients yeah it's intentional um I mean most people like it that way so they can drizzle it on yogurt bowls and smoothies and oaes and stuff like that guys what is your relationship so Eric and I are dating we've been dating for about eight years so she's wiped up at this point what are you waiting for Eric it's a good question and then Ari and Eric are childhood friends how did you come up with this idea granola butter actually came out of my eating disorder recovery um so I struggled with food in my body for over a decade um particularly anorexia binge eating and orthorexia which is sort of like eating healthy taking into the extreme so it's an obsession with eating perfectly clean all the time so one day you know I just hit my rock bottom and decided to reach out for help um found an incredible therapist who you know really set me up on this journey of self-love and food freedom and I did what any Millennial would do in my situation which was I started an Instagram account to document my entire journey I bet you helped a lot of people Ally yeah thank you I'm excited to share my story because I felt so alone when I was going through it um and so if one person watching you know hopefully I can feel help them feel less alone and now Ally was then this granola butter yeah something you said it came out of that Journey definitely yeah so where the granola butter comes in is you know part of my recovery Journey was adding my fear Foods back into my diet so for me that was peanut butter and almond butter um because they're you know a little more calorically dense and so I avoided them for a really long time and as I started to add them back in you know my gut couldn't handle all of the nuts unfortunately so I started to explore some of the nut-free options but for me personally they just didn't resonate with me that much and so I was in my tiny SF kitchen with just like a blender some granola and I had this Epiphany to do an oat based spread and I saw what you know oat milk had done and just exploded and I was so shocked that no one had done an oat based bread so that's where the idea was born and then we brought Ari in and he put the chef's kiss final touches on it can you break down the numbers for me so lifetime sales of the business we've done $2.7 million cash money um and over what period of time uh so we launched in March of 201 18 the first year we did about $156,000 in sales the next year we did $435 last year we did $1.2 million wow um and that was with a marketing spend of less than 5% of our gross revenue that's a lot thank and we're looking to close this year out about $2.5 million and how much money have you guys raised so we actually bootstrapped the business for the first 2 years we put about 100K of our own money and raiseed 600k on a convertible note what valuation uh so we raised that at partially on a $5 million cap and partially on a $6 million cap the first part of that was our true friends and family and the second piece of that was from Founders who've had successful exits in the space Tara Bosch who's the founder of smart Suites and she was a solo founder and ended up selling her business for over $300 million in just four years we have Jake cassen who who trapped his way to one of the most successful e-commerce businesses movement watches and they also had an exit for over $300 million so what is the cost structure what do it cost you to make a jar yeah so it costs us on average 325 to manufacture a jar we sell a jar for between $9 and $12.95 on our site to Distributors we sell for a little under $55.50 and then that lands on shelves between $8.99 and $1.99 so when you walk into a store what is it about it as opposed to all the competitors that are out there that's going to make it stand out and make people want to sample it why people go to our product is really different based on who the consumer is so if they have a nut allergy or they oh no I get that but there's a lot of them now and just being allergen free and gluten-free that's not enough of a differentiation and I just don't see that one thing that makes it stand out you know you guys have had great success so far I'm sure you'll continue but for those Reasons I'm out okay thanks Mark you're welcome um I love the team I love The Branding of it I think it's a great name but I have to say I don't see what I could do for your business and unfortunately I'm out thank you yeah every shark does food deals I'm no different this category is very competitive but I'm still stuck on the consistency I don't like it okay you know I got to love a product because my strategy is always I have your back I'm sorry guys I'm out okay I think that it is um great tasting I think your packaging is great I like the granola butter it's intuitive it's instantaneous I knew just what it was before you explained what it was yeah you've done a really great job with flavor profiles I just don't see it as a bus for me I'm out thank you thank you yeah thank you so much you know I I like you guys I like your product a lot there was one thing that when you were presenting I couldn't get out of my system and it was when you started mentioning your investors you said this one had an exit for this and this one had an exit for this and we had an exit for this and you know when I started kind it never crossed my mind that that there would be I didn't even know what the terminology is the exit when you build something you should build it because you love it not for the exit and I think there's a a desire to surround yourself with Founders that had exits that is what my God is telling me I I will buy the product I'll buy it for my kids and I'll recommend it I'm sorry but I'm out okay thank you thank you good luck guys congratulations you know honestly it just adds fuel to the fire you know I want the Sharks to really look back and realize shoot I missed a huge opportunity and now you know o house is on the moon and I'm down here on planet Earth Daniel I I'm so happy you said that I always feel that way if you focus on an exit even crossing your mind word bothers me so much guys what are you talking about in the flavor this stuff tastes like I disagree with Mr Wonderful I think think that's okay it's you sure [Music] way

Channel: Shark Tank Global

Views: 140,461

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv

Id: 8XsPzZMCNd8

Length: 9min 3sec (543 seconds)

Published: Thu Apr 11 2024