Umaro Foods Seaweed-Based Bacon
DEAL
EPISODE SUMMARY
🕓 Air Date: April 1, 2022
Asking For:
$500,000 for 2%
Investor:
Mark Cuban
Deal:
$1,000,000 for 7%
PRODUCT SUMMARY
Umaro Protein Company specializes in creating plant-based bacon from seaweed, aiming to offer a sustainable, environmentally friendly alternative to traditional meat products.
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Background Story
Umaro Protein Company, headquartered in Berkeley, California, was co-founded by Beth Zotter and Amanda Stiles, two visionary entrepreneurs with complementary expertise and a shared commitment to sustainability. Beth’s background in renewable energy, coupled with her prior success securing a $5 million research grant from the Department of Energy to construct offshore seaweed farms for fuel, provided the initial impetus for the company’s focus on seaweed as a viable protein source.
Recognizing the detrimental impact of animal protein on the environment, Beth set out to explore alternative, eco-friendly options, ultimately zeroing in on seaweed as a potent solution. Amanda, armed with a Ph.D. in plant biochemistry, brought a deep understanding of the intricacies of protein extraction and a passion for creating plant-based foods that could rival their animal-based counterparts in taste and texture.
Together, the co-founders harnessed their respective knowledge and expertise to develop a groundbreaking process that transformed seaweed into a convincing and delicious bacon substitute, marking the inception of Umaro’s flagship product. Their joint mission to reduce the ecological footprint of the food industry led them to pioneer advanced systems in high-tech ocean farming and precision protein extraction, positioning Umaro Protein Company at the forefront of the burgeoning plant-based protein market.
The Product
Umaro Protein Company’s flagship product, seaweed-based bacon, represents a pioneering leap in the realm of plant-based alternatives. Leveraging their innovative protein extraction process, the company transforms nutrient-rich seaweed into a delectable bacon substitute that closely emulates the taste and texture of traditional bacon.
The product is designed to cater to the growing demand for sustainable and environmentally friendly food options, appealing to both vegans and conscientious consumers seeking to reduce their carbon footprint. With a focus on achieving a similar savory, smoky flavor and crispy, chewy texture to conventional bacon, Umaro’s seaweed-based bacon boasts a compelling blend of taste and health benefits.
This versatile product can be utilized in various culinary applications, from classic breakfast dishes like the traditional BLT to sandwiches, salads, and other savory creations. Targeted primarily at the food service industry initially, Umaro’s seaweed bacon is priced at $18 per pound, with plans to streamline production processes and decrease costs to $5.20 per pound. With an emphasis on quality, taste, and environmental sustainability, Umaro’s product aims to revolutionize the way consumers perceive and consume plant-based protein alternatives.
How It Went
The company’s position before Shark Tank
Umaro Protein Company, with its cutting-edge seaweed-based protein innovation, has demonstrated robust potential and garnered significant attention within the plant-based food industry. The company’s strategic partnerships with key players in the sector, including discussions with prominent restaurant chains, reflect the growing interest in their sustainable protein solution. Emphasizing their commitment to minimizing environmental impact, Umaro has established itself as a pioneer in the emerging segment of seaweed-based protein, securing foundational intellectual property rights across the entire value chain, including patents for their proprietary protein extraction process and fat mimetic technology.
While currently focusing on penetrating the food service market, Umaro has strategic plans for expanding into the retail sector, capitalizing on the escalating demand for eco-friendly and health-conscious alternatives. The company’s dynamic approach to product development and its dedication to maintaining superior taste and quality have garnered a favorable response from its customer base, comprising both environmentally conscious consumers and individuals seeking healthier dietary options.
In terms of financial backing, Umaro Protein Company has successfully secured a significant series “A” funding round valued at $25 million, illustrating the growing confidence and support from investors in their innovative approach to sustainable protein production. The company’s strong financial standing, coupled with its emphasis on efficient production processes, positions it favorably for future growth and market expansion. The organizational structure of Umaro reflects a cohesive and visionary leadership, with Beth Zotter and Amanda Stiles at the helm, driving the company’s mission to revolutionize the plant-based protein industry.
The Negotiations:
During the intense negotiations on Shark Tank, Umaro Protein Company’s founders, Beth Zotter and Amanda Stiles, encountered a flurry of compelling offers from the Sharks, underscoring the significant potential of their seaweed-based bacon. Kevin O’Leary swiftly made an offer of $500,000 for an 8% equity stake, signaling his interest in the company’s innovative approach. Mark Cuban followed suit with an initial bid of $1 million for an 8% share, leveraging his extensive experience in the plant-based food industry to make a persuasive case for his investment.
Lori Greiner, recognizing the product’s market appeal and the founders’ impressive capabilities, proposed $500,000 for a 4% stake while aiming to ensure her involvement remained non-dilutive in subsequent funding rounds. With multiple compelling offers on the table, the founders deliberated, considering the strategic value and expertise each Shark brought to the table. After a brief negotiation, Mark Cuban accepted a deal of $1 million for a 7% equity stake, highlighting his belief in the company’s growth potential and solidifying a strategic partnership.
The negotiation process showcased the competitive nature of the plant-based food industry and the critical role of seasoned investors in steering early-stage companies toward success. Beth and Amanda’s careful evaluation of the Sharks’ offers ultimately led them to choose Mark Cuban’s offer, recognizing the value of his expertise and industry connections in propelling Umaro Protein Company toward significant growth and industry prominence.
