Sap! Maple Beverage
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$600,000 for 12%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Sap! is a healthy beverage company offering seltzers and sodas made from pure maple and birch sap sourced from Vermont.
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Background Story
Chas Smith and Nikita Salmon, both cousins from Vermont, share a deep connection with the natural beauty of the region and were inspired by the lifeblood of their surroundings—the sap from maple and birch trees. Chas, who took over the family farm at the age of 20 with 12,000 taps, embarked on a journey of experimentation with sap, leading to the creation of Sap! The beverage company’s roots are firmly grounded in Vermont, reflecting the founders’ commitment to offering a product that not only embodies the essence of their region but also promotes a healthy lifestyle.
The Product
Sap! presents a unique and refreshing lineup of beverages derived from pure maple and birch sap, including the maple sap seltzer, maple sap soda, and birch sap. The maple sap seltzer delivers a sparkling water experience, while the maple sap soda elevates sweetness by concentrating the sap.
The birch sap, a recent addition to the lineup, stands out for its additional nutrients and health benefits. Priced at $1.99 per can and $7.99 for a four-pack, Sap! products distinguish themselves by containing no added water, offering a rich combination of antioxidants, electrolytes, and over 40 essential nutrients.
How It Went
The company’s position before Shark Tank
Sap! has achieved noteworthy success within a short period, with total sales reaching $400,000 in just 15 months of operation. Chas Smith, with a 300-acre farm and 12,000 taps, emphasizes the unique selling proposition of Sap! products, positioning them as a healthier alternative to traditional sodas. The cost per product is approximately 50 cents, indicating a reasonable profit margin.
Sap! is witnessing a surge in demand, especially within the sparkling water category, where conventional options lack the health benefits found in their sap-based beverages. The founders have strategically collaborated with esteemed institutions like the University of Vermont and Cornell to further research the bioactive properties of their products, showcasing a commitment to continuous improvement and innovation.
The Negotiations:
Despite positive reception regarding taste and health benefits, the Sharks raised concerns during the negotiation phase. Mark Cuban, impressed with the potential, offered $600,000 for a 30% equity stake in the business. The founders, exhibiting confidence in their brand, countered with a revised proposal of $600,000 for a 20% stake, seeking a more favorable valuation. However, the negotiation took an unforeseen turn when Rohan Oza expressed reservations about the functional benefits justifying the $2.00 price point.
This led to Mark Cuban retracting his offer, followed by Lori Greiner and Rohan Oza, ultimately resulting in no deal being secured. While the founders left the Tank without securing investment, they remained optimistic about finding the right partners who align with their vision for Sap! and expressed gratitude for the invaluable feedback provided by the Sharks.
