It seems pet products have become a mainstay in Shark Tank this season, and the latest episode of Shark Tank is no exception. From Himalayan cheeses to unconventionally colored beauty products, there was no shortage of variety in the latest episode of Shark Tank. If you missed the action in the tank, here’s how it all shook out.
First into the Shark Tank are Suman, Sujan and Nishes Shrestha, seeking a $750,000 investment in exchange for a 5% stake in their company, Himalayan Dog Chew. The Shresthas make the dog chews out of yak and cow milk, salt, and lime juice. While that may not sound appetizing, the $5.6 million in sales last year indicates otherwise. With such high sales, the Sharks are left scratching their heads over why the Shresthas would enter the Shark Tank in the first place. The brothers say they started the company with $2,000 of their own money, and that they took no profit for themselves, and instead kept reinvesting in the company. The Shresthas plan to take half of the Shark’s money themselves (as salary, essentially), because they claim to have never taken dividends from the company. Well, and answer that frank draws both laughter and annoyance from the Sharks, who would rather their investment go toward the company, not to the brothers’ pockets. Kevin, probably the Shark most understanding of greed, makes an offer of $750,000, which he wants to be put toward building capacity. That $750,000 is a loan with a 10% interest rate, and Kevin will also get 5% equity in the company. The Shresthas don’t want a debt offer, though, so Robert’s offer of $650,000 for 10% equity is slightly more enticing. Lori then changes her mind after going out earlier and comes back in with an offer of $750,000 for 15% equity. After a few counters back and forth for straight equity, it’s clear the Shresthas aren’t going to find what they are looking for. They “humbly decline” the offers on the table, and leave the Shark Tank without a deal.
In Season Four of Shark Tank, fans met Nuts ‘n More nut spreads, who scored a deal with Robert and Mark. Now, two years later, the guys have expanded their product offerings to also include almond and whey proteins, as well as expanded their distribution into 2,000 GNC stores, with upcoming plans to begin sales in all 4,000 GNC stores nationwide. Before Shark Tank, the guys had $100,000 in sales, and now sales have reached $6 million. With the further GNC expansion their projecting $20 million in sales. That’s the Shark Tank effect!
Next in the Shark Tank are Melissa Butler and Rosco Spears, the beauty masterminds behind The Lip Bar. The ladies asked the Sharks for a $125,000 investment in exchange for 20% equity in their company, which is built around offering vegan and cruelty-free lipsticks in unconventional colors. While The Lip Bar has managed $107,000 sales in two years, the Sharks are less convinced that there’s a space on the shelf for a new company offering such wild colors, like orange and turquoise. The women say that beauty buyers love the product, but that their main challenge has been securing distribution. To combat that, they’ve begun creating a Lip Bar Mobile, essentially a branded traveling truck that the Sharks call “such a bad idea.” Reasoning that “if it was a good idea, other lipstick makers would make these colors already,” none of the Sharks see investment success in The Lip Bar. They’re all out.
For the frat boy who has everything, next into the Shark Tank is Kevin Waltermire with his company, The Beverage Boy. Kevin asks the Sharks for a $50,000 investment in exchange for 15% equity in his company. The Beverage Boy is a floating koozie/can cooler with an arm extension that allows it to float in a pool or hot tub without toppling. The Bev Boy has $10,500 in revenue, or what Mr. Wonderful would certainly call “a nothing burger.” The Bev Boys cost $2 to make, they’re sold wholesale for $5 and retail for $9.99. So unimpressed with the entrepreneur who shares a name with him, Kevin says, “I am stripping you of your name. You are now called Zonk.” The name sticks, but some Sharks do see the potential in Zonk. Lori offers $50,000 for 40% of the company, rationalizing the high valuation based on the company’s low sales. Daymond comes in next at $50,000 for 40% as well, “just to stick it to Lori.” Zonk/Kevin says he’ll go to 30% if one of the Sharks will meet him there. Lori says her offer is continent on getting a big box retailer like Walmart or Bed Bath & Beyond, while Daymond says he has a licensing firm and no contingency. Daymond’s deal is sounding sweeter, but Kevin/Zonk asks if Daymond will meet him at 35%. Daymond agrees and the deal is done. Cheers!
Last into the Shark Tank is Bobbie Rhodes, owner of FunBites, seeking a $75,000 investment in exchange for 20% equity in her company. Bobbie created FunBites as an easy way to cut food into fun shapes like hearts, squares, and triangles. She’s reached $400,000 in sales in less than three years, including $40,000 in just the last 3 months. Currently, FunBites is on 50 websites, just got approved for sales in Target, and has seen interest from Toys ‘R Us and Nordstrom. FunBites has also been in Kohls and Bed Bath & Beyond from the beginning, however the lackluster clamshell package and placement in the baby section made for some sales struggles. The FunBites cost $1.72/apiece to make, they wholesale for $6 and retail for $12.99. As the former youngest VP of Marketing at Revlon, marketing is well within Bobbi’s wheelhouse, however she’s looking for a Shark to help her with possible licensing and getting into additional big box retailers. Also adding to her recently success, Bobbi received an award for FunBites use within the special needs community, mostly due to autistic children liking the neat square shapes that FunBites cuts. Daymond is first to make an offer of $75,000 for 20%, but Lori quickly jumps in, announcing that “it’s deal time!” Lori offers $75,000 for 35%, because she already has relationships with many of the stores Bobbi is targeting. Daymond ups his offer to $100,000 for 25%, but it’s clear that Lori knows Bobbi wants to make a deal with her. After some persuading from Lori, Bobbi agrees to make the deal. Mark Cuban attempts a last-minute steal, but Bobbi cannot be dissuaded. The deal is done with Lori!
What did you think of the latest episode of Shark Tank? Leave us a comment to let us know!