Nui Is STUCK Between The Deals Offered By The Sharks | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, Christofer and Victor present Newie, a low-carb, keto-friendly cookie brand, seeking $300,000 for 10% equity. They share their personal journeys of overcoming sugar cravings by creating a healthier cookie option. With $1.1 million in sales over 12 months, they highlight their product’s key benefits: low sugar, net carbs, and high demand. The sharks express interest, offering various deals involving equity, royalties, and credit lines. After considering the offers, the entrepreneurs ultimately agree to Barbara's deal of $300,000 for 25% equity, confident about scaling their business.

Takeaways

• 🍪 Two entrepreneurs, Christofer and Victor, pitch their company, Newie, which makes keto-friendly cookies with low sugar and carbs.
• 🥥 Newie cookies are made from almond flour, coconut oil, and grass-fed butter, containing only 1 gram of sugar and 2 grams of net carbs per cookie.
• 💰 The founders seek $300,000 for 10% equity in their company, which has generated $1.1 million in sales over the last 12 months.
• 🛍️ All their sales have been direct-to-consumer through their website, but they are launching on Amazon soon and expect sales to double.
• 🧁 Newie cookies are sold at $29.95 per box (20 cookies), with a profit margin of $1 to $1.30 per cookie, though they aim to reduce costs.
• 📦 The company recently moved production to a co-packer but faces challenges with demand and cash flow for inventory.
• 📊 Despite strong sales, their net profit over the last 12 months was only $35,000, and they seek to improve margins and efficiency.
• 👨‍👩‍👦 Both founders come from immigrant families, and their personal stories of hard work and entrepreneurship resonate with the sharks.
• 💼 Kevin O'Leary offers $300,000 with a $1 royalty per sale until recouping his investment, then $0.45 royalty in perpetuity, plus 25% equity.
• 🤝 After negotiating with other sharks, the entrepreneurs accept Barbara's deal of $300,000 for 25% equity, focusing on scaling their business.

Q & A

What product are the founders pitching in the script?

The founders are pitching 'Newie,' a low-carb, keto-friendly cookie with only one gram of sugar.

What is the primary motivation for creating Newie cookies?

The founders created Newie cookies to satisfy their sugar cravings while on a ketogenic diet without consuming unhealthy amounts of sugar.

What are the main ingredients in Newie cookies?

Newie cookies are made with almond flour, natural sweeteners like monk fruit, and healthy fats such as coconut oil and grass-fed butter.

How do the founders plan to make Newie cookies affordable for retail?

Their goal is to reduce the production cost to $6 per box by working with supply partners and buying ingredients in larger volumes.

How much does each box of Newie cookies cost?

Each box of Newie cookies costs $29.95, plus $4.95 for shipping.

What have been the founders' main challenges so far?

Their main challenges have been managing cash flow to meet demand and scaling production as they transition to working with a co-packer.

What are the company's sales figures over the last 12 months?

Over the last 12 months, the company has sold $1.1 million worth of cookies, with $630,000 in sales year-to-date, despite being sold out for half of that period.

What are the sharks' main concerns regarding the business?

The sharks are concerned about the high valuation, the current profit margins, and the scalability of the business given the high production costs.

What offers did the sharks make to the founders?

Kevin offered $300,000 in exchange for a royalty of $1 per sale until his investment was returned, then 45 cents in perpetuity and 25% equity. Barbara offered $300,000 (split into $150,000 in cash and $150,000 as a line of credit) in exchange for 15% equity and a 50-cent royalty per box sold.

What was the final deal the founders accepted?

The founders ultimately accepted Barbara's original deal of $300,000 for 25% equity.