ENERGYbits Algae Tablets
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 18, 2016
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
ENERGYbits offers tiny algae tablets that provide natural energy, increase focus, satisfy hunger, enhance athletic performance, and aid in recovery, all from one calorie per tab.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
ENERGYbits, headquartered in the vibrant city of Boston, Massachusetts, was founded by the dynamic and passionate entrepreneur Catharine Arnston. Catharine’s journey into the world of algae-based nutrition began with a personal and poignant experience when her sister battled breast cancer. Advised by her sister’s oncologist to explore dietary changes, Catharine delved into the realm of plant-based nutrition, ultimately leading her to the powerful benefits of algae.
Motivated by the desire to bring these nutritional advantages to a wider audience, Catharine embarked on a two-year research endeavor. This period was marked by personal sacrifices, including bankruptcy and foreclosure, as she dedicated herself to understanding the potential of algae as a superfood. She recognized that despite algae’s extensive use in Asia for over 50 years, it remained largely unnoticed in the United States due to a lack of proper branding.
This realization fueled Catharine’s determination to create the first mainstream brand for algae in America. Despite facing financial challenges and skepticism, she remained resolute in her mission. Her commitment was rooted in the belief that algae could revolutionize health and wellness, offering a natural alternative to traditional energy products.The founding story of ENERGYbits encapsulates Catharine’s resilience and dedication to introducing algae as a nutritional powerhouse. As the company’s CEO, her personal connection to the product and unwavering commitment have been instrumental in ENERGYbits’ growth and positioning as a pioneer in the algae-based nutrition market.
The Product
ENERGYbits offers a revolutionary product in the form of tiny algae tablets, each packed with remarkable health benefits. Primarily composed of spirulina and chlorella, these algae varieties are known for their rich nutritional profiles. ENERGYbits’ flagship product, ENERGYbits, harnesses the power of spirulina to provide natural energy, increased focus, appetite satisfaction, improved athletic performance, and faster recovery. The tablets boast an astonishingly low calorie count, with each tab delivering these benefits at just one calorie.
The versatility of the product is highlighted through different variants such as SKINNYbits and RECOVERYbits. SKINNYbits, despite the name, does not make weight-loss claims but serves as a healthy snack option. Meanwhile, RECOVERYbits, powered by chlorella, supports the immune system and aids in toxin removal, particularly lactic acid, making it a favorite among athletes.
Consumers can purchase ENERGYbits’ products online through their official website, where a bag containing 1,000 tablets is priced at $115. For those interested in a smaller package, individual servings are available for $4. The product’s efficacy is backed by over 100,000 documented studies, highlighting its safety and potential health benefits.
ENERGYbits’ algae tablets are recommended for swallowing, not chewing, and each serving typically consists of 30 tablets. As the company expands into the retail market, consumers can anticipate more accessible options to incorporate these algae-based nutritional powerhouses into their daily routines.
How It Went
The company’s position before Shark Tank
ENERGYbits has demonstrated robust performance, establishing itself as a trailblazer in the algae-based nutrition market. The company, under the leadership of CEO Catharine Arnston, has seen steady growth since its inception six years ago. Sales have consistently doubled each year, reaching an impressive lifetime total of $1.5 million, with $300,000 in sales reported for the previous year.
The company’s financial health is underlined by its ability to reinvest every penny into operations, reflecting a commitment to continuous improvement and learning. Despite facing financial challenges, including bankruptcy and foreclosure, ENERGYbits has emerged resilient, with Catharine Arnston’s unwavering dedication playing a pivotal role in sustaining the company through tough times. ENERGYbits primarily sells its products online through its official website, offering a bag containing 1,000 algae tablets at $115 and individual servings at $4.
As the company eyes retail expansion, it anticipates reaching a broader consumer base. Partnerships and collaborations are crucial elements of ENERGYbits’ success. The company has established itself as the first mainstream brand for algae in America, marking a significant branding achievement.The company’s structure aligns with its ambitious mission of mainstreaming algae-based nutrition. With a dedicated customer base, strategic partnerships, and a resilient financial approach, ENERGYbits is well-positioned for sustained growth and impact in the health and wellness industry.
The Negotiations:
In the Shark Tank pitch, Catharine Arnston, the CEO of ENERGYbits, entered the tank seeking a $500,000 investment in exchange for a 5% equity stake in her company. This valuation implied a $10 million valuation for ENERGYbits. However, the negotiations took an unexpected turn as the Sharks expressed skepticism about the company’s worth and its unconventional product offering. The Sharks, while intrigued by the potential health benefits of algae, found it challenging to justify the $10 million valuation for a company that, despite doubling sales annually, had yet to turn a significant profit.
Concerns were raised about the non-proprietary nature of the product, its implied claims, and the challenging business model. Lori Greiner highlighted the potential misconception in the product’s branding, specifically the term “SKINNYbits,” which could imply weight-loss benefits. The Sharks delved into the specifics of the product, expressing reservations about its taste and the necessity to consume 30 tablets for noticeable effects.
As the negotiation progressed, all five Sharks ultimately decided to pass on the investment opportunity. Mark Cuban was the first to declare himself out, expressing doubts about the business model and the company’s lack of profitability. The other Sharks followed suit, with Kevin O’Leary emphasizing the need for a reality check regarding the $10 million valuation. Despite Catharine’s impassioned plea and commitment, the Sharks collectively agreed that the valuation was unrealistic, leading to ENERGYbits leaving the tank without a deal.
