Nutr – Nut Milk Maker
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 20, 2023
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Nutr is a home-based plant-based milk maker that simplifies the process of creating nutritious and clean plant-based milks with just the push of a button.
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Background Story
Nutr was pitched on Shark Tank by founders Alicia and Dane, hailing from Columbus, Ohio. Alicia, with a passion for creating plant-based milks at home, grew dissatisfied with the additives and preservatives found in store-bought alternatives. This led to the development of Nutr, a machine that simplifies the process of making nutritious, clean, and preservative-free plant-based milks. Their mission is to provide consumers with a healthier and more sustainable alternative to traditional dairy products.
The Product
Nutr is a user-friendly machine designed to produce homemade plant-based milk. To create a batch of milk, users add nuts, water, and any desired ingredients into the Nutr machine. A single press of a button initiates a blending process that takes just a few minutes.
The result is a creamy, pure, and nutritious plant-based milk without any of the preservatives or processed sugars often found in store-bought alternatives.
The Nutr machine retails for $169, with a production cost of $42, boasting an impressive 73% gross margin. The company primarily sells its products through its website, with biweekly and monthly subscription options available, starting at $45 and $75, respectively.
How It Went
The company’s position before Shark Tank
Nutr’s success lies in its direct-to-consumer sales approach, with 90% of their sales taking place through their website. They do not have any notable partners or wholesalers, and their primary funding source has been bootstrapping, with the founders investing approximately half a million dollars of their own money. They also obtained a soft circle of about a quarter million from angel investors, despite initially claiming to be 100% bootstrapped.
The company’s financials reflect significant growth, with $793,000 in sales the previous year and projections of reaching $6 million in the current year. This impressive growth was driven by a substantial marketing budget of $1.3 million over the past 12 months, focusing on influencer marketing.
The Negotiations:
In the Shark Tank, Alicia and Dane initially sought $500,000 in exchange for a 5% equity stake in their company, Nutr. Mark Cuban was the first to bow out, citing the substantial ask and the need to see a clear path to a 10x return on investment. Lori Greiner followed, expressing concerns about the practicality of such gadgets in daily use, even though she appreciated the product. She also inquired about the company’s debt and received conflicting information about their financing sources.
Kevin O’Leary focused on the founders’ inability to accurately represent their financing sources and high levels of debt amounting to $1 million. He emphasized the importance of financial transparency and structure. Lastly, Daniel Lubetzky offered a potential deal of $500,000 for 7.5% equity and an additional 2% advisory share. However, he expressed skepticism about the founders’ initial valuation.
Alicia and Dane decided to decline the offer, emphasizing their determination to prove the Sharks wrong and grow their company to a billion-dollar valuation. Ultimately, the Nutr founders left the tank without securing a deal, but they were determined to continue their journey and expand their product’s presence in the market.
