Veggie Mama – Frozen Fruit and Veggie Bars
DEAL
EPISODE SUMMARY
🕓 Air Date: October 18, 2013
Asking For:
$75,000 for 15%
Investor:
Barbara Corcoran, Mark Cuban (50/50)
Deal:
$75,000 for 25%
PRODUCT SUMMARY
Veggie Mama offers frozen snacks made with real fruits and vegetables, providing a delicious way to sneak essential nutrients into children's diets.
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Background Story
Teresa Fraijo and her husband Robert, residents of Laguna Niguel, California, embarked on a journey to tackle the common parental struggle of getting children to eat healthy. With two sons, Vance and Maximillian, the Fraijo family understood firsthand the challenges of incorporating nutritious foods into their kids’ diets. Teresa, affectionately known as “Veggie Mama,” and Robert, faced with their children’s reluctance to eat vegetables, embarked on a mission to find a solution.
Their journey began in their kitchen, where they experimented with various fruit and vegetable combinations, ultimately crafting delicious and nutritious smoothies for their kids. However, Teresa soon realized that the convenience of such snacks was limited, prompting her to innovate further. Drawing from her background as a mother and homemaker, and Robert’s support, the couple delved into creating a convenient and appealing solution to sneak essential nutrients into children’s diets.
Their brainstorming and experimentation led to the creation of Veggie Mama, a company based on the premise of providing wholesome frozen snacks made from real fruits and vegetables. Understanding the busy lives of modern families, Teresa and Robert aimed to offer a convenient yet nutritious option for snack time. Fuelled by their passion for promoting healthy eating habits in children and inspired by their own experiences as parents, the Fraijo family poured their savings, borrowed from loved ones, and even made personal sacrifices to bring Veggie Mama to life.
The Product
Veggie Mama offers a delightful solution to the age-old challenge of getting children to eat their vegetables. Their flagship product, Veggie Mama Garden Pops, are frozen snacks packed with real fruits and vegetables, sweetened only with organic agave nectar, and free from artificial colors, flavors, or preservatives. Available in enticing flavors like Carrot Berry, Citrus Cucumber, and Sweet Potato Pie, each package contains six pops, making it convenient for parents to offer a nutritious snack to their kids.
These Garden Pops provide a fun and tasty way for children to enjoy the essential nutrients found in fruits and vegetables, all while indulging in a frozen treat. Parents can feel good about serving Veggie Mama’s snacks, knowing they are providing their children with wholesome ingredients without compromising on taste.
Veggie Mama Garden Pops can be purchased through various retail outlets, including Whole Foods and Sprouts Farmers Markets, making them easily accessible to families across the country. With a wholesale price of $2.25 per package, these snacks offer great value for both parents and retailers alike, contributing to their appeal in the market. As a guilt-free indulgence for kids and a convenient snack option for parents, Veggie Mama Garden Pops are revolutionizing the way families approach healthy eating.
How It Went
The company’s position before Shark Tank
Veggie Mama has shown promising growth and resilience since its inception, positioning itself as a leader in the healthy snacks market. With partnerships established with major retailers like Whole Foods and Sprouts Farmers Markets, the company has secured valuable distribution channels, reaching a wide customer base across the United States. This strategic expansion into reputable retail outlets has contributed significantly to Veggie Mama’s brand visibility and market penetration. As wholesalers, Veggie Mama supplies its products to distributors at a competitive wholesale price of $2.25 per package, ensuring profitability while maintaining affordability for consumers.
Their target customers primarily consist of health-conscious parents seeking nutritious snack options for their children, as well as individuals looking for convenient and tasty frozen treats made from real fruits and vegetables. In terms of funding, Veggie Mama has relied on a combination of personal investment and contributions from family and friends, totaling $140,000. This capital has been utilized to cover various operational expenses, including product development, manufacturing, marketing, and distribution. Despite initial investments and sacrifices, the company has managed to achieve profitability, with sales totaling $30,000 and steadily increasing, particularly following recent partnerships with Sprouts Farmers Markets.
Currently structured as a privately held corporation, Veggie Mama is operated by its founders, Teresa and Robert Fraijo. Teresa manages the day-to-day operations full-time, while Robert contributes part-time alongside his separate full-time job. The company’s financial health is stable, with available capital from sales revenue and previous investments, providing a solid foundation for future growth and expansion initiatives. As Veggie Mama continues to innovate and capture market share in the healthy snacks industry, its prospects for sustained success appear promising.
The Negotiations:
During the negotiations on Shark Tank, Veggie Mama faced a flurry of offers from the Sharks, each presenting unique terms and propositions. Initially seeking $75,000 for 15% equity, Teresa and Robert received offers that ranged from royalty deals to equity stakes. Kevin O’Leary offered $150,000 for a royalty deal, where he would earn 50 cents per unit until recouping his investment, then dropping to 25 cents, with no equity stake. While tempting, Teresa and Robert expressed concerns about the royalty structure and ultimately declined the offer.
Mark Cuban and Barbara Corcoran made a joint offer of $75,000 for 20% equity, along with a 20-cent royalty per unit. However, Teresa and Robert hesitated due to the royalty component, leading to a brief negotiation about removing the royalty clause. Eventually, the Sharks agreed to a deal without royalties, sealing the partnership. Daymond John also presented an offer of $75,000 for 20% equity, with a commitment to provide additional funding in the future if needed.
Despite the tempting offer, Teresa and Robert ultimately chose the partnership with Mark Cuban and Barbara Corcoran, viewing their combined expertise and connections as invaluable assets for the growth of Veggie Mama. In the end, after considering various offers and negotiating terms, Veggie Mama secured a deal with Mark Cuban and Barbara Corcoran, receiving the desired investment while maintaining control over their business and product.
