GoOats Oatmeal Balls
DEAL
EPISODE SUMMARY
🕓 Air Date: October 23, 2020
Asking For:
$150,000 for 10%
Investor:
Nahum Jeannot
Deal:
$150,000 for 25%
PRODUCT SUMMARY
GoOats offers oatmeal in a ball format that is convenient and easy to prepare, making it an ideal breakfast or snack option.
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Background Story
Nahum Jeannot, the founder of GoOats, started his culinary journey at the age of 16 and gained valuable experience working in various restaurants, including prestigious establishments like Four Seasons and W Hotels. In 2015, while working as a head chef at the Hyatt Regency in Tysons Corner, he created the concept of oatmeal in a ball format.
The inspiration came from a need for a mess-free, portable breakfast option. After receiving a positive response from guests, Nahum decided to share this innovative product with the world.
The Product
GoOats’ oatmeal balls are designed for convenience and nutrition. They contain familiar oatmeal ingredients like milk, butter, sugar, and steel-cut oats, but they are transformed into bite-sized, handheld portions.
To prepare, customers can either bake them in the provided box in the oven for 10 to 15 minutes when frozen or use a microwave for a quick 30 to 60-second option. This flexibility caters to individuals with busy mornings or on-the-go lifestyles who desire a wholesome meal.
Each pouch of GoOats includes multiple oatmeal balls and is available in various flavors. With only 170 calories for three oatmeal balls, GoOats provides a convenient, satisfying, and nutritious option for consumers.
How It Went
The company’s position before Shark Tank
In its early years, GoOats faced challenges in terms of sales growth. The company achieved $13,000 in sales in 2017, which increased to $57,000 in 2018. However, sales remained relatively flat in 2019, hovering around $54,000 to $57,000. GoOats initially entered the market through Whole Foods, leveraging the opportunity to provide local products in their region. Nahum Jeannot was directly involved in production, packaging, and delivery to these stores.
The COVID-19 pandemic led to Nahum’s layoff from his full-time job, prompting him to shift his focus to GoOats full-time. The product was priced at $2.66 per unit for distribution, with a production cost of $1.35. However, this pricing was identified as a challenge, and Barbara Corcoran’s investment was expected to help GoOats expand into larger retail chains and navigate the complexities of scaling the business.
The Negotiations:
Nahum initially pitched GoOats to the Sharks, seeking $150,000 in exchange for 10% equity. Barbara Corcoran made the first offer, proposing $150,000 for 25% equity and emphasizing her expertise in navigating big box stores and slotting fees. While Nahum expressed a desire to explore other options, Barbara declined the opportunity to be shopped around and requested a counteroffer.
Nahum suggesting to Barbara that they explore the possibility of involving another investor. Barbara then advised Nahum not to risk losing the deal by shopping it to other Sharks. Lori Greiner chimed in, recommending that Nahum consider having just one Shark on board for focused support.
Nahum then asked if they could negotiate a deal for $150,000 in exchange for a 15% equity stake. Barbara offered $150,000 for 20% equity, and in the end, Nahum decided to accept Barbara’s offer recognizing her belief in both him and the product. The deal was struck, and GoOats gained a valuable partner to help it expand its presence in the market.
