Me and the Bees Lemonade
DEAL
EPISODE SUMMARY
🕓 Air Date: March 20, 2015
Asking For:
$60,000 for 10%
Investor:
Daymond John
Deal:
$60,000 for 25%
PRODUCT SUMMARY
BeeSweet Lemonade is honeybee-sweetened lemonade with a special ingredient - flaxseed, providing a healthier beverage alternative with flavors like Original, Mint, Half-and-Half Tea and Lemonade, Ginger, and Prickly Pear.
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Background Story
BeeSweet Lemonade, founded by the dynamic duo of 9-year-old Mikaila Ulmer and her father, Theo Ulmer, has a heartwarming origin story rooted in family, entrepreneurship, and a passion for the environment. Located in Austin, Texas, the company’s inception traces back to Mikaila’s early years, where a unique set of events sparked the creation of their signature product. Mikaila’s journey began when, as a kindergartener, she entered a youth entrepreneurship contest. Coincidentally, around the same time, she experienced the discomfort of being stung by two bees in one week. This unexpected encounter with bees, coupled with a 1940s cookbook sent by her great-grandmother Helen, set the stage for the birth of BeeSweet Lemonade.
Intrigued by the role bees play in the ecosystem, Mikaila decided to create a product that not only celebrated the vital work of bees but also incorporated her great-grandmother’s cherished flaxseed lemonade recipe. The result was BeeSweet Lemonade, a delightful fusion of honeybee-sweetened lemonade with the added nutritional twist of flaxseed. Theo Ulmer, with a background spanning over 40 years in marketing, operations, and finance, joined forces with his daughter to nurture BeeSweet into a flourishing business.
Their commitment to the venture is evident, with Theo leaving his position at Xerox and Dell Computer to support Mikaila’s entrepreneurial dreams. BeeSweet Lemonade currently operates out of Austin, Texas, and has successfully positioned itself in the competitive market, with products available in over 30 locations across four cities, notably in Whole Foods Market. The company’s narrative blends Mikaila’s youthful enthusiasm with Theo’s seasoned experience, creating a refreshing beverage that not only satisfies the taste buds but also contributes to the well-being of both consumers and the environment.
The Product
BeeSweet Lemonade is a distinctive beverage that stands out in the market for its unique blend of flavors and health-conscious ingredients. The product, sweetened with honeybee and infused with flaxseed, offers a refreshing twist on traditional lemonade, providing consumers with a delightful and functional drink.
Crafted in four enticing flavors – Original, Mint, Half-and-Half Tea and Lemonade, Ginger, and Prickly Pear – BeeSweet Lemonade distinguishes itself by incorporating flaxseed, a nutrient-rich ingredient packed with omegas and fiber. This infusion not only enhances the flavor profile but also contributes to the drink’s health benefits, keeping consumers energized and refreshed.
BeeSweet Lemonade targets health-conscious consumers seeking a flavorful yet healthier alternative to conventional beverages. With an emphasis on simple, natural ingredients, the lemonade positions itself as a functional drink with potential benefits beyond quenching thirst.
Manufactured in Austin, Texas, by a local co-packer, BeeSweet Lemonade has gained traction primarily through Whole Foods Market, currently being sold in over 30 locations across four cities. The founders, Mikaila and Theo Ulmer, aim to expand their presence to the entire Southwest region, covering four states, with plans to scale production and lower costs to offer an even more competitive and accessible pricing model in the future.
How It Went
The company’s position before Shark Tank
BeeSweet Lemonade has exhibited a commendable performance, navigating a competitive market with resilience and strategic expansion efforts. The company’s primary retail partner is Whole Foods Market, where the product is sold in over 30 locations across four cities. This strategic partnership has not only provided BeeSweet Lemonade with a platform for increased visibility but has also opened doors to further expansion opportunities within the entire Southwest region, covering four states. The company’s commitment to environmental sustainability and the health-conscious consumer demographic positions it favorably in a market increasingly driven by these factors.
BeeSweet Lemonade’s unique selling proposition lies not only in its flavorful offerings but also in its dedication to honeybee conservation and the incorporation of health-enhancing ingredients like flaxseed. In terms of funding, BeeSweet Lemonade has been seeking a $60,000 investment for 10% equity, as presented on the “Shark Tank” episode. The deal eventually closed with Daymond John, who offered $60,000 for 25% contingent on successful distribution to convenience stores on the East Coast. This partnership signifies a crucial step for BeeSweet Lemonade, as it leverages Daymond John’s expertise and network to further expand its market presence. The company’s financial health is reflected in its year-to-date sales of $25,000, a figure that encompasses sales through August.
While the sales figure may appear modest, it is important to note that BeeSweet Lemonade has been in business for five and a half years. The founders, Mikaila and Theo Ulmer, bring a wealth of experience to the table, with over 40 years of combined expertise in marketing, operations, and finance. The current company structure involves Theo Ulmer being actively engaged in the business, with his wife handling full-time responsibilities. With plans to use the $60,000 investment to expand production and launch into the entire Southwest region, BeeSweet Lemonade is poised for further growth. As the company continues to evolve, its dedication to quality, sustainability, and community engagement will likely contribute to its sustained success in the beverage industry.
The Negotiations:
BeeSweet Lemonade faced a challenging negotiation process, ultimately securing a deal that reflected the founders’ dedication and the unique value proposition of their product. Mikaila and Theo Ulmer initially entered the tank seeking a $60,000 investment for 10% equity in their company. The negotiation began with the sharks expressing concerns about Mikaila’s commitment, given her reluctance to drop out of school. Kevin O’Leary quickly bowed out, citing the need for a full-time CEO. Mark Cuban also expressed reservations about the competitive nature of the beverage market and questioned the $3.00 retail price.
Barbara Corcoran and Lori Greiner, acknowledging Mikaila’s incredible presentation, both decided to pass due to personal reasons and an allergy preventing them from tasting the product. As the number of sharks dwindled, Daymond John stepped in with a unique offer. He proposed a $60,000 investment for 25% equity but made it contingent on successful distribution to convenience stores on the East Coast, leveraging his existing partnership with an East Coast distributor. This offer was a strategic move to tap into Daymond John’s expertise and network.
The Ulmers accepted Daymond’s offer, sealing the deal with a handshake. The contingent nature of the agreement added a layer of complexity, tying the success of the deal to the ability to secure shelf space in convenience stores on the East Coast. This negotiation showcased the sharks’ initial concerns and skepticism, which were ultimately overcome by Daymond John’s strategic vision for BeeSweet Lemonade and the founders’ unwavering commitment to their business. The deal reflected a balance between the unique circumstances of the founders and the potential for strategic growth facilitated by the selected shark.
