The Sharks Are Grossed Out By This Pitch | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, Allison and Steven Ellsworth introduce Mother Beverage, a natural, sparkling probiotic drink made with apple cider vinegar, organic fruits, and herbs. With only 2-4g of sugar per bottle, the product offers health benefits like detox and weight loss. Seeking $400,000 for 10% equity, the company has seen impressive growth, projecting $1 million in revenue this year. While the founders face challenges scaling in a competitive market, they are passionate about their product's potential. After some negotiation, a shark offers $400,000 for 25% equity, proposing a more realistic valuation for the company’s growth trajectory.

Takeaways

• 😀 Mother Beverage is a sparkling probiotic drink made with organic fruits, herbs, and apple cider vinegar (ACV), offering health benefits like detox and weight loss.
• 🍏 The drink has low sugar content, with only 2 to 4 grams of sugar per bottle, making it a healthier alternative to sugary sodas.
• 🍹 The founders, Allison and Steven Ellsworth, started the business after Allison used ACV to improve her health but struggled with its strong taste.
• 💡 Mother Beverage offers an all-natural, unpasteurized product, preserving the health benefits of ACV.
• 🍾 The product comes in multiple flavors including Lime Ginger, Raspberry Rose, Pineapple Turmeric, and Blueberry Sage.
• 🌱 The company manufactures its own product, controlling production costs and ensuring the quality of the unpasteurized drink.
• 📈 The company has already secured distribution in over 200 locations, including Whole Foods and Albertsons, with projected sales of $1 million this year.
• 💰 They are seeking $400,000 for 10% equity, valuing the company at $4 million based on projected sales.
• ⚠️ Sharks were concerned about scalability, particularly the challenges of manufacturing in-house and competing in a crowded market.
• 💬 Mark Cuban offered $400,000 for 25% equity, based on a $1.6 million valuation, which the founders ultimately accepted.
• 🛠️ Despite their early success, the business needs a more scalable manufacturing and marketing strategy to compete with larger beverage companies.

Q & A

What is the core product of Mother Beverage?

Mother Beverage is an all-natural sparkling probiotic drink made with organic fruits and herbs, with a key ingredient being apple cider vinegar (ACV). It is designed to be a refreshing, healthy alternative to sugary sodas.

Why did the founders, Allison and Steven Ellsworth, start Mother Beverage?

The founders created Mother Beverage after Allison started drinking apple cider vinegar for its detoxifying and weight loss benefits. However, she struggled with the strong taste, prompting them to develop a more palatable version with health benefits intact.

How much apple cider vinegar is in each bottle of Mother Beverage?

Each bottle contains one tablespoon of apple cider vinegar, which is intended to provide the health benefits associated with ACV, such as detoxification and weight loss support.

What is the primary challenge that the founders face in the beverage industry?

The primary challenge is competing with large beverage corporations that have significant resources and shelf space. Despite this, the founders believe in their unique value proposition of offering a healthy, low-sugar, probiotic drink with a functional health story.

What makes Mother Beverage different from traditional apple cider vinegar shots?

Mother Beverage is a much more palatable, diluted version of apple cider vinegar. It is lightly carbonated, flavored with organic fruits and herbs, and has only 2-4 grams of sugar per bottle, making it a more enjoyable way to consume ACV.

What are some of the top-selling flavors of Mother Beverage?

The top-selling flavors of Mother Beverage are Lime Ginger, Raspberry Rose, Pineapple Turmeric, and Blueberry Sage.

What is the retail price range for a bottle of Mother Beverage?

A bottle of Mother Beverage retails for between $2.99 and $3.59, depending on the retailer's margin.

What was Mother Beverage's revenue projection for the year?

Mother Beverage projected to generate $1 million in revenue for the year, having already achieved placement in over 200 locations in a major grocery chain.

How much does it cost to produce a bottle of Mother Beverage?

The production cost of a bottle of Mother Beverage ranges from 78 cents to 85 cents per bottle.

What was the valuation offered by the investor, and why was it significant?

An investor offered $400,000 for a 25% equity stake in the company, bringing the company's valuation to approximately $1.6 million based on projected revenue. This offer was considered a strong one, especially given the competitive challenges the company faced in the beverage industry.