Coconut Girl – Ice Cream Sandwiches
DEAL
EPISODE SUMMARY
🕓 Air Date: March 6, 2020
Asking For:
$180,000 for 18%
Investor:
Mark Cuban
Deal:
$180,000 for 20%
PRODUCT SUMMARY
Coconut Girl offers dairy-free and gluten-free ice-cream sandwiches made with all-natural ingredients like organic coconut milk, honey, dates, and maple syrup, providing a guilt-free alternative to traditional ice cream.
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Background Story
Frankie Yamsuan, the founder of Coconut Girl, shares her entrepreneurial journey on Shark Tank. Born in the Philippines, Yamsuan came to the United States at the age of 5, witnessing her mother working two jobs to provide opportunities for their family. Despite dropping out of UCLA, Yamsuan was always passionate about health and fitness. She started Coconut Girl after being frustrated with the deceptive practices in the health food industry, aiming to create genuinely healthy alternatives.
Yamsuan’s initial foray into entrepreneurship involved an icicle tricycle, selling products at fitness events. The transition to ice cream sandwiches came when customers repurposed her pint-sized products into sandwiches. She saw the potential and focused on creating a healthier version of the decadent treat. With a background in health and fitness, Yamsuan’s goal was to provide consumers with tasty, nutritious alternatives to conventional sweets.
The Product
Coconut Girl’s nice-cream sandwiches come in three flavors: Beach Bum Maple, Aloha Chocolate, and Hang Loose Vanilla. The cookies, made from almond butter, contain pure cocoa nibs for added crunch without any additional sugar. The ice cream sandwiches are dairy-free, gluten-free, and made with all-natural ingredients, including organic coconut milk, honey, dates, and maple syrup.
Yamsuan emphasizes the health benefits of her products, stating that one sandwich, despite being relatively large, contains 250 calories. The focus is on creating a satisfying treat without compromising on nutritional value. The products are currently retailed for $4.99 to $5.49.
Yamsuan manages all aspects of the production process, acknowledging the need for funding to optimize efficiency and lower food costs. The ice cream sandwiches are currently sold in big-box retail stores in Southern California, with Whole Foods being a major account. Coconut Girl recently gained distribution in Hawaii, Nevada, and Arizona, along with being picked up by a significant natural food distributor.
How It Went
The company’s position before Shark Tank
In the third year of retail operations, Coconut Girl has shown steady growth. Yamsuan reports revenue figures of $120,000 the previous year and $60,000 the year before that. The company is on track to reach $300,000 in the current year. Major accounts include Whole Foods, with distribution in 30 locations, and recent expansion into Hawaii, Nevada, and Arizona. Coconut Girl has also secured distribution through one of the largest natural food distributors.
While Yamsuan initially used a co-packer for production, increased demand led her to take control of the entire production process. She expresses confidence in the efficiency of her production methods and plans to scale up with the additional funding. Yamsuan is seeking funds not only to hire staff for logistics and operations but also to lower food costs. She aims to reduce production costs from $1 to 50 cents per unit.
The Negotiations:
In the negotiation phase, Kevin O’Leary and Lori Greiner both expressed immediate interest in the product. Cuban made a strong initial offer of $180,000 for 25%, emphasizing his love for healthy foods. Greiner was also interested and mentioned her love for chocolate. Kevin O’Leary, expressing a keen interest, quickly made an offer of $180,000 for 20%.
However, Cuban, keen on securing the deal without competition, encouraged Yamsuan to accept his offer without listening to other Sharks. In the final moments, Cuban adjusted his offer to 20%, and Yamsuan accepted the deal. Lori Greiner, who expressed interest earlier, was not able to make a competing offer. The negotiation showcased Mark Cuban’s direct and decisive approach, securing the deal with Coconut Girl at a 20% equity stake for the requested $180,000.
