Mush – Ready-to-Eat Overnight Oats
DEAL
EPISODE SUMMARY
🕓 Air Date: November 26, 2017
Asking For:
$300,000 for 10%
Investor:
Mark Cuban
Deal:
$300,000 for 10%
PRODUCT SUMMARY
Mush is a first-to-market, all-natural, ready-to-eat oatmeal served conveniently in single-serving pods, aiming to combat America's love affair with sugar.
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Background Story
Ashley Thompson and Kat Thomas, the founders of Mush, entered the workforce in finance and experienced the challenge of finding convenient and healthy foods. Frustrated with the sugar-laden options like yogurt and cereal, they decided to address this issue. Moving to San Diego, they quit their jobs and created Mush, a revolutionary cold-soaked oatmeal that retains nutrients without cooking. The product serves as both a healthy breakfast option and a rebellion against the sugar-loaded food industry.
The Product
Mush is an innovative oatmeal product that stands out for its all-natural, ready-to-eat convenience. The oats are cold-soaked in house-made almond or coconut milk, preserving essential vitamins and minerals. The resulting consistency is similar to pudding, offering a nutrient-dense alternative to traditional oatmeal.
The product is dairy-free, protein-rich, high in fiber, and served in single-serving pods for grab-and-go convenience. Flavors include Vanilla Bean, Dark Cacao, Michigan Blueberry, and Cold Brew. Each flavor is carefully crafted with organic ingredients, such as vanilla bean, organic cacao powder, wild blueberries, and cold brew coffee.
Mush’s convenient packaging includes a small spoon under the lid, making it easy for consumers to enjoy on the move. The product caters to those seeking a healthier breakfast or snack option, especially those who are conscious of sugar intake. With a retail price of $3.99, Mush competes in the market by providing value through its nutritional content and convenience.
How It Went
The company’s position before Shark Tank
Mush started by selling at farmers’ markets, accumulating $70,000 in sales in its first year. After launching at Whole Foods in March, the company experienced rapid growth, reaching $120,000 in sales in the current year. The founders project a substantial increase, estimating $900,000 in sales for the next year. With a focus on combatting sugar consumption, Mush has positioned itself as a healthier alternative in the market. The founders have successfully penetrated the market through partnerships with Whole Foods, establishing a presence in the health food retail sector.
However, concerns were raised about the pricing strategy, with competitors offering similar products at lower price points. The founders defended their pricing, emphasizing the value of their product’s nutritional content and convenience. The company’s performance suggests positive momentum, but questions remain about scalability and distribution. The negotiation with the Sharks revealed the founders’ commitment to changing the food industry and their willingness to collaborate with experienced investors.
The Negotiations:
The entrepreneurs were faced with three compelling offers, each with its unique advantages. Mark highlighted his success in building multi-billion-dollar exits, emphasizing the need for strategic vision. Rohan showcased his industry-specific expertise, having been involved in successful ventures like SmartWater and Vitaminwater. The pitch attracted offers from Mark Cuban and Rohan Oza.
Rohan offered $400,000 for a 20% stake, emphasizing his expertise in the food industry. Mark countered with $300,000 for a 10% stake, along with an unlimited credit line. Barbara Corcoran also offered $300,000 for a 10% stake plus an unlimited line of credit. Ultimately, the founders chose Mark Cuban’s offer, valuing his experience and vision for transforming Mush into a mega-brand.
While Rohan acknowledged Mark’s suitability for Mush’s journey, he expressed his belief in his own value, underscoring the competitive nature of the negotiation. The decision reflected the founders’ alignment with Mark’s commitment to changing the world through business.
