Noshi – Food Paint for Kids
DEAL
EPISODE SUMMARY
🕓 Air Date: May 5, 2023
Asking For:
$250,000 for 17%
Investor:
Mark Cuban
Deal:
$250,000 for 25%
PRODUCT SUMMARY
Noshi offers edible, organic Food Paint and condiments that allow kids to turn mealtime into an art class while making their food more appealing.
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Background Story
Tomo, a stay-at-home dad, created Noshi to address the challenge of getting picky eaters to enjoy their meals. He and his wife faced hardships due to her long-haul COVID-19, which left Tomo as the primary caregiver for their children. He came from a background in the fashion industry and transitioned to creating Noshi to provide healthy, fun food options for kids.
The Product
Noshi offers edible, organic Food Paint and condiments in various flavors such as strawberry, peach, and mango. Kids can use them to decorate their food, making it more visually appealing and enticing.
The product is available in various licensed versions like Crayola and “Peppa Pig.” Noshi is sold in boxes with three tubes and retails for $5.46 per box. It costs about $2.72 to produce each unit, but with additional machinery, production costs can be reduced by 60 cents per unit.
Wholesale prices are $3.70 per box. While the company faced challenges initially due to packaging and product awareness, it has made progress and is available in 370 Walmart stores.
How It Went
The company’s position before Shark Tank
Noshi generated $117,000 in sales in the previous year, with a projected $200,000 in sales for the current year. The product is sold in 370 Walmart stores, and there are plans for further expansion. However, Noshi faced challenges due to poor packaging design and product awareness. Despite these challenges, Walmart continued to support the brand. Noshi’s founder, Tomo, has been a one-man show, juggling the responsibilities of running the business and being a single parent due to his wife’s long-haul COVID condition.
The Negotiations:
While Tomo initially asked for $250,000 for 17% equity, Mark Cuban offered the same amount for 25% equity, which was accepted. Other sharks, such as Kevin O’Leary, Lori Greiner, and Daymond John, expressed concerns about the product’s sales, packaging, and market position, ultimately choosing not to invest. Mark Cuban’s offer allowed Noshi to secure the funding needed to further develop the product, expand its online presence, and continue its journey to make mealtime more enjoyable for kids.
