Numilk Dairy-Free Milk
DEAL
EPISODE SUMMARY
🕓 Air Date: March 26, 2021
Asking For:
$1,000,000 for 5%
Investor:
Mark Cuban
Deal:
$1,000,000 for 7% + 3% advisory shares
PRODUCT SUMMARY
Numilk offers a custom machine for grocery stores that allows shoppers to make fresh, pure, dairy-free milk from various ingredients like organic almonds, cacao, vanilla bean, and maple at the push of a button.
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Background Story
Numilk’s origin story is a tale of two visionaries, Ari Tolwin and Joe Savino, who embarked on a mission to reshape the landscape of plant-based milk consumption. These two entrepreneurs, hailing from the vibrant backdrop of New York, brought a unique blend of expertise and passion to the table. Ari Tolwin’s background in aviation catering for both commercial and private jets instilled in him a commitment to delivering exceptional products to discerning customers.
He understood the importance of quality and innovation, which would later become the cornerstone of Numilk’s approach.Joe Savino, on the other hand, had already made strides in the food and beverage industry with his brand, Happytree Maple Water. This prior venture demonstrated his ability to identify emerging trends and create products that resonate with consumers seeking healthier alternatives.
Their paths converged when they joined forces to create Numilk. United by a shared vision of promoting plant-based diets and reducing waste, they set out to revolutionize the way people access dairy-free milk. Their journey represents not only a business endeavor but a passionate commitment to making fresh, pure, and sustainable plant-based milk readily available to all, while simultaneously championing the cause of environmental sustainability. Through Numilk, Ari and Joe are not just changing diets; they are striving to change the world.
The Product
Numilk’s innovative custom machine is poised to redefine the way consumers experience dairy-free milk. At the heart of this ingenious solution lies a commitment to freshness, quality, and sustainability. The Numilk machine empowers shoppers to craft their own dairy-free milk right within grocery stores, providing a truly immersive and personalized experience.
Utilizing top-tier ingredients such as organic almonds sourced from the renowned orchards of Spain, Numilk ensures that the almond milk it produces is of the highest quality, free from the additives and preservatives commonly found in store-bought alternatives. For those seeking a touch of indulgence, Numilk doesn’t disappoint.
Their chocolate milk blend, featuring a harmonious combination of organic cacao, vanilla bean, and maple, offers a rich and decadent dairy-free treat that rivals traditional chocolate milk in taste and quality. Numilk’s commitment to variety is evident in its lineup of milk options.
Whether customers prefer almond or oat milk, they have the freedom to choose, each promising a delightful dairy-free experience. Moreover, these freshly made concoctions boast a shelf life of 7 to 10 days when refrigerated, ensuring that the freshness and quality endure long after the purchase.
The company’s vision extends beyond its current offerings, with plans to diversify further. Future expansions into ingredients like cashews and hemp will provide even more choices for consumers, catering to various dietary preferences and ensuring that Numilk remains at the forefront of the plant-based milk revolution. With Numilk, the future of dairy-free milk has never been fresher, tastier, or more accessible.
How It Went
The company’s position before Shark Tank
Numilk’s journey through the years has been marked by resilience and innovation. In 2018, the company embarked on its entrepreneurial path, generating $40,000 in revenue despite having only one machine in partial operation. This modest beginning was accompanied by a resolute investment in research and development, amounting to $2 million in losses, reflecting Numilk’s dedication to refining its product and vision.
The following year, 2019, witnessed substantial growth as revenue surged to $320,000, a testament to the potential of Numilk’s concept. With a fleet of 10 operational machines, they continued their investment in R&D, allocating $3 million toward perfecting their offerings. However, this ambitious pursuit led to a total loss of $5 million, underscoring their unwavering commitment to delivering excellence.
The current year brought both opportunities and challenges. Numilk projected an impressive revenue of $6 million, poised to solidify its position in the market. However, the unforeseen impact of the pandemic disrupted their plans, resulting in a sales estimate of $400,000. Nevertheless, Numilk remained resilient in the face of adversity. To support their growth and innovation, Numilk successfully raised $12 million in funding, a testament to the investor community’s belief in their mission and potential.
Furthermore, the introduction of the countertop version of their machine, priced at $199, represents a strategic move to expand their consumer reach and accessibility.Numilk’s performance reflects not only their determination to revolutionize plant-based milk but also their adaptability in navigating a changing landscape, cementing their position as a pioneering force in the industry.
The Negotiations:
The negotiation process in the Shark Tank episode brought both challenges and opportunities for Numilk’s founders, Ari and Joe. Three Sharks, concerned about the business model and valuation, opted out early, casting initial doubt on the potential of the venture. However, Mark Cuban’s interest proved to be a game-changer. He not only saw the potential in Numilk but also recognized the broader appeal of plant-based products, making a substantial $2 million offer.
Cuban’s proposal was a blend of financing and expertise, including a $1 million loan at 9.5% interest for three years and 5% equity. To sweeten the deal further, he introduced a countertop version of the Numilk machine, priced attractively at $85, which expanded the product’s reach to households. Kevin O’Leary, not one to be outdone, made a competing offer, also providing $2 million in funding. However, his offer was structured differently, with $1 million as a loan at a lower 3% interest rate and 3% equity offered as advisory shares.
This alternative offer showcased O’Leary’s unique approach to investment. Ultimately, Ari and Joe weighed their options and chose to accept Mark Cuban’s offer of $2 million for 10% equity, which included 7% equity and a $1 million loan at a favorable 3% interest rate. This decision reflected their belief in Cuban’s ability to provide valuable guidance and connections, aligning with their vision to take Numilk to new heights.
