The Sharks Question What Makes Must Love Stand Out From Its Competitors | Shark Tank US

Summary

In a pitch to the Sharks, Hannah and Molly, best friends from Los Angeles, present their plant-based ice cream company, Must Love, seeking $600,000 for 75% equity. They offer healthier, indulgent treats free from cheap oils and artificial additives, with flavors like peanut butter swirl and cashew cookie. Despite growing sales, the company operates at a loss due to the cash-intensive nature of the food industry and aggressive marketing. Their products are available in Sprouts, select Whole Foods, and Costco, retailing for $5.99 with a cost of $1.80. The duo has self-invested $200,000 and raised $1.4 million from friends, family, and angels at a $14 million valuation. They face skepticism from the Sharks about their valuation and the competitive frozen dessert market, ultimately leaving without a deal.

Takeaways

• 🍦 Hannah and Molly are best friends from Los Angeles, California, seeking $600,000 for 75% equity in their company, Must Love.
• 🌱 They offer a healthier, plant-based alternative to traditional ice cream, using simple ingredients and avoiding cheap oils and artificial preservatives.
• 🍌 Must Love's products include dairy-free ice cream in pints with flavors like peanut butter swirl and cashew cookie, as well as novelty bars.
• 🎨 This summer, they launched plant-based, non-GMO sprinkles that pair well with their ice cream, with colors derived from plants.
• 📈 The company has been growing double year-over-year since its launch in 2017, with $1 million in sales year to date and a projected $1.7 million in revenue for the year.
• 💸 Despite the growth, Must Love is currently running at a loss of about $400,000, which they attribute to the cash-intensive nature of the food industry and marketing costs.
• 🛒 Must Love products are available nationally at Sprouts Farmers Market, certain regions of Whole Foods, and have recently launched in Costco.
• 💰 The ice cream retails for $5.99, with a cost of goods at $1.80, indicating a significant margin that could be attractive to investors.
• 🤝 The founders have invested $200,000 of their own money and raised an additional $1.4 million from friends, family, and angel investors at a $1.4 million valuation.
• 🦈 They are currently in a seed round with an $8 million valuation and are on Shark Tank to negotiate and potentially secure an investment.
• 🔄 Some 'sharks' expressed concerns about the high valuation and the company's current losses, ultimately deciding not to invest, while others highlighted the competitive nature of the industry.

Q & A

Who are Hannah and Molly and what are they seeking on the show?

Hannah and Molly are best friends from Los Angeles, California, who are seeking $600,000 for 75% equity in their company, Must Love.

What is the main issue with the ingredients commonly found in ice cream according to Hannah and Molly?

The main issue with common ice cream ingredients is that they often include cheap oils like canola and palm, artificial preservatives and flavors, and even ingredients derived from petroleum, wood pulp, and beetles.

What makes Must Love's ice cream different from traditional ice cream?

Must Love's ice cream is different because it is plant-based, made with simple ingredients, and free from artificial additives. It is also marketed as being healthier and good for you.

What are some of the flavors and product types offered by Must Love?

Must Love offers flavors such as peanut butter swirl, cashew cookie, and snickerdoodle dough in pints, as well as novelty bars like dipped crunchy peanut swirl and dipped vanilla.

How does Must Love ensure the vibrancy of their sprinkles without using artificial colors?

Must Love ensures the vibrancy of their sprinkles by using plant-based, non-GMO ingredients, which also provide the vibrant colors.

What was the sales growth of Must Love from its launch in 2017 until the time of the pitch?

Must Love had $355,000 in sales at launch in 2017 and has grown double year-over-year, reaching $1 million in sales by the time of the pitch.

What is the current financial status of Must Love in terms of profit and loss?

At the time of the pitch, Must Love is running a loss of about $400,000.

What is the retail price and cost of goods for Must Love's products?

Must Love's products typically retail for $5.99 on the shelf, and their cost of goods is $1.80.

How much investment have Hannah and Molly raised for Must Love prior to the show?

Prior to the show, Hannah and Molly had invested $200,000 of their own money and raised an additional $1.4 million from friends, family, and angel investors.

What is the current valuation of Must Love and what stage of funding are they in?

The current valuation of Must Love is $8 million, and they are in the seed round of funding.

What are some of the challenges faced by Must Love in the competitive frozen dessert market?

Some challenges faced by Must Love include the cash-intensive nature of the food industry, the need for significant marketing to secure and maintain shelf space, and the competitive nature of the frozen dessert market, especially in the dairy-free and novelty segments.