Crio Bru – Superfood Coffee Alternative
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 25, 2014
Asking For:
$1,000,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
CRIO is a reinvention of the ancient beverage Xocoatl, combining coffee and chocolate into a healthy drink rich in antioxidants.
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Background Story
CRIO, introduced by Jon Fotheringham and Dr. Eric Durtschi on Shark Tank, is a beverage company seeking to revolutionize the ancient drink Xocoatl by infusing it with modern flavors and health benefits. The founders, Jon Fotheringham and Dr. Eric Durtschi, hail from Goleta, California, their journey to CRIO began with a shared passion for merging culinary traditions with nutritional science. Fotheringham brings entrepreneurial expertise to the table, while Dr. Durtschi contributes his background in healthcare and nutrition.
The idea for CRIO stemmed from their fascination with the historical beverage Xocoatl, known as the drink of the gods among the Maya of Central America. Through years of experimentation and research, they sought to reinvent this ancient drink using 100% cocoa beans, with a focus on health and wellness. Their aim was to create a beverage that combined the rich flavors of coffee and chocolate while offering significant health benefits, including zero fat, zero sugar, zero cholesterol, and a high concentration of antioxidants.
Driven by their belief in the potential of CRIO to revolutionize the beverage market, Fotheringham and Dr. Durtschi embarked on a journey to bring their product to consumers. Their dedication led them to develop a proprietary roasting process, which they have patented pending, distinguishing CRIO from other coffee and chocolate products on the market. With a focus on quality, innovation, and health, the founders are determined to carve out a unique space for CRIO in the $75 billion coffee, tea, and chocolate markets.
The Product
CRIO is a unique beverage that combines the flavors of coffee and chocolate while offering significant health benefits. Made from 100% cocoa beans, CRIO is available in various forms, including plain and iced coconut CRIO. It can be brewed at home or enjoyed at coffee shops, providing consumers with a versatile and convenient option for a flavorful and energizing drink.
One of the key selling points of CRIO is its health-conscious formula. With zero fat, zero sugar, and zero cholesterol, CRIO offers a guilt-free alternative to traditional coffee and chocolate drinks. Additionally, each serving contains only 10 calories, making it an ideal choice for those watching their calorie intake. Moreover, CRIO boasts a high concentration of antioxidants, providing consumers with added health benefits compared to other beverages.
CRIO’s unique blend of flavors and health benefits has garnered interest from consumers and retailers alike. Currently available in 500 stores, CRIO is on track to expand to 1,500 stores by the end of the year. Consumers can purchase CRIO from grocery stores and other retail outlets, with reorders reported within a short period due to its popularity.
How It Went
The company’s position before Shark Tank
CRIO has demonstrated solid performance in terms of sales and market penetration, indicating promising potential for growth. With $1.5 million in sales and over 276,000 units sold in the past two years, the company has established a foothold in the beverage market. Currently, CRIO is available in 500 stores, with plans to expand to 1,500 stores by the end of the year, highlighting its increasing popularity among consumers. The company’s distribution channels primarily include grocery stores, where it has achieved reorders within a short period, indicating strong demand and customer satisfaction.
CRIO’s presence in mainstream retail channels suggests collaboration with distributors and retail chains to reach consumers nationwide. In terms of funding, CRIO’s current financial structure is not explicitly disclosed in the pitch. However, the founders seek $1 million in exchange for a 10% equity stake in their business, suggesting they may be looking for external investment to fuel their expansion plans and product development efforts.
Despite facing skepticism from the Sharks regarding their valuation, CRIO remains confident in its future growth prospects, citing interest from large companies and their proprietary roasting process, which is patent-pending. With a focus on quality, innovation, and health, CRIO is poised to capitalize on the growing demand for healthy and flavorful beverage options in the $75 billion coffee, tea, and chocolate markets.
The Negotiations:
The negotiations for CRIO on Shark Tank saw the founders, Jon Fotheringham and Dr. Eric Durtschi, seeking $1 million for a 10% equity stake in their business. However, the Sharks expressed skepticism regarding the valuation and the scalability of the company. Kevin O’Leary was particularly critical, questioning the rationale behind the high asking price and highlighting the competitive nature of the beverage market.
Despite the founders’ confidence in future sales projections and their unique roasting process, which is patent-pending, the Sharks ultimately passed on the opportunity. They raised concerns about the need for extensive consumer education and the founders’ ambitious valuation. The negotiations highlighted the challenges faced by CRIO in gaining traction in the market and securing investment.
While the founders remained optimistic about their future success and projected $10 million in sales for the following year, the Sharks were unconvinced about the feasibility of their projections. In the end, none of the Sharks were willing to invest in CRIO at the proposed valuation. The founders left the Tank without a deal but remained hopeful about the potential of their product to succeed in the competitive beverage industry. Despite facing rejection, they expressed gratitude for the feedback and vowed to continue pursuing their vision for CRIO.
