Nana Hats – Banana Silicone Cap
DEAL
EPISODE SUMMARY
🕓 Air Date: November 11, 2022
Asking For:
$150,000 for 10%
Investor:
Lori Greiner, Peter Jones (50/50)
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Nana Hats is the world’s first banana-preservation device designed to extend the freshness of bananas and reduce food waste, featuring adorable silicone caps with interchangeable hats.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Sean Adler, the founder of Nana Hats, came up with the idea in 2016 while trying to find a solution to keep bananas fresh. He noticed that as bananas ripen, they release ethylene gas, which accelerates the ripening process of other bananas. Sean’s motivation was to reduce food waste and address the issue of single-use plastics associated with other preservation methods.
While working as a wealth manager for a large investment bank, Sean decided to pursue his idea more seriously in 2020 when he had more time due to the pandemic. He launched Nana Hats from his living room couch and quickly gained traction.
The Product
Nana Hats are silicone caps retrofitted with magnets that can be placed on the crown of bananas. These caps help slow down the spread of ethylene gas, extending the freshness of bananas for approximately 8 to 12 days.
The product is sold in two-packs for $12.99, with an average cost of $1.95 per hat. Nana Hats come with 12 interchangeable designs, making them both functional and aesthetically pleasing for kitchen countertops.
How It Went
The company’s position before Shark Tank
In 2021, Nana Hats generated $483,000 in sales, with a projected revenue of $600,000 for the current year. The company operates with 60% direct-to-customer (D2C) sales and 40% wholesale, primarily through one large online gift retailer. While Sean had attempted to reach out to grocery chains for distribution, he faced challenges in getting his brand-new product into retail stores. Sean is the sole employee of the business, with his wife assisting, and he owns 100% of the company.
The Negotiations:
Lori Greiner and Peter Jones offered $150,000 for a combined 30% equity in Nana Hats. Kevin O’Leary also expressed interest, proposing a royalty deal of $1 per unit sold for a 10% equity stake. Ultimately, Sean countered with a 15% equity offer for the original $150,000 investment, and Peter and Lori agreed to this offer, making a deal for a 20% equity stake for $150,000. Kevin O’Leary and Mark Cuban did not participate in the deal, and Sean accepted the offer from Lori and Peter.
