Aura Bora Herbal Sparkling Water
DEAL
EPISODE SUMMARY
🕓 Air Date: January 22, 2021
Asking For:
$150,000 for 5%
Investor:
Robert Herjavec
Deal:
$200,000 for 15%
PRODUCT SUMMARY
Aura Bora offers herbal sparkling waters with unique flavors and natural ingredients, such as lemongrass coconut, peppermint watermelon, lavender cucumber, basil berry, and cactus rose.
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Background Story
Maddie and Paul, a married couple, introduced Aura Bora, a line of herbal sparkling waters, on Shark Tank. Maddie, who works full-time in branding, serves as the creative director for Aura Bora, while Paul has a background in finance. They’ve invested their energy and passion into creating a product that stands out in the crowded sparkling water market.
With their commitment to sophisticated branding and natural ingredients, they aimed to offer something different from the typical options available, which often feature artificial flavors and uninspired packaging.
The Product
Aura Bora’s herbal sparkling waters are crafted with real herbal extracts, fruits, and flowers, resulting in a refreshing and unique beverage.
Their flavors include lemongrass coconut, peppermint watermelon, lavender cucumber, basil berry, and cactus rose, appealing to consumers seeking a more sophisticated and natural alternative to traditional sparkling waters.
The product is marketed as having zero calories, zero sugar, and zero sodium, with no artificial sweeteners.
How It Went
The company’s position before Shark Tank
Aura Bora had achieved $200,000 in sales by the time of their Shark Tank appearance, with distribution in 488 stores and a focus on natural food retailers. They claimed 100% sell-through in the stores where their product was available. The company had raised $700,000 in funding, with Maddie and Paul owning 74% of the business.
Their manufacturing capacity had room for significant growth, with plans to scale production. They were also in talks with big-box retailers for expanded distribution, anticipating revenues between $2.5 million and $3.5 million for the next year. Their business model offered a 50% profit margin on each can sold.
The Negotiations:
Maddie and Paul initially sought $150,000 for 5% equity, valuing their company at $3 million. Kevin O’Leary expressed concerns about the crowded beverage market but was impressed that Aura Bora had already secured distribution. However, he was not passionate about the product and opted out. Mark Cuban and Daniel Lubetzky also decided to pass, citing the niche nature of the product.
Robert Herjavec offered an interesting deal – $150,000 for a 5-cent royalty per can until he recouped $300,000, along with a 5% equity stake. Kevin O’Leary then surprised everyone with a competing offer of $200,000 for 10% equity. Robert countered with $200,000 for 15%, which Maddie and Paul accepted, making a deal with Robert.
