Nuts ‘N More
DEAL
EPISODE SUMMARY
🕓 Air Date: March 1, 2013
Asking For:
$250,000 for 20%
Investor:
Robert Herjavec, Mark Cuban (50/50)
Deal:
$250,000 for 35%
PRODUCT SUMMARY
Nuts 'N More offers fortified nut butters with added protein, omega fatty acids, and high fiber content, aimed at health-conscious consumers.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Neil Cameron, Peter Ferreira, and Dennis Iannoti founded Nuts ‘N More after experimenting in a small corner of Cameron’s family bakery shop. They combined various ingredients, including nuts and protein, to create fortified nut butters. Their venture quickly gained traction, attracting attention from pro fitness athletes, celebrities, and nutritional stores.
The Product
Nuts ‘N More offers four varieties of fortified nut butters: peanut butter, chocolate peanut butter, almond, and chocolate almond. These nut butters are enriched with protein, omega fatty acids, and high fiber, providing health-conscious consumers with a nutritious alternative to traditional nut butters.
The peanut butter contains 14 grams of protein per serving compared to the usual seven grams, while the almond butter offers similar nutritional benefits. The product is priced at $10.99 for peanut butter and $12.99 for almond butter, with production costs of $2.90 and $4, respectively.
With the investment, they plan to secure raw materials at a higher volume, which would reduce production costs by $1.50. Nuts ‘N More is currently available for purchase online and in 32 retail outlets, with online sales contributing to approximately 50% of their business.
How It Went
The company’s position before Shark Tank
Despite being in operation for less than a year, Nuts ‘N More has achieved notable milestones, including $100,000 in sales within the first few months. The company’s rapid growth trajectory caught the attention of a national distributor, signaling significant potential for expansion and revenue growth. Currently, Nuts ‘N More sells through 32 retail outlets and maintains a robust online presence, with online sales accounting for approximately 50% of total revenue.
However, the company faces challenges in fulfilling orders due to limited production capacity and high production costs. To address these challenges and capitalize on growth opportunities, Nuts ‘N More is seeking investment to increase production capacity, optimize operational efficiency, and expand distribution channels.
The Negotiations:
The Sharks expressed initial skepticism regarding the company’s valuation, given its short operating history and relatively modest sales figures. Despite interest from multiple sharks, negotiations stalled due to the valuation discrepancy and uncertainties regarding future orders. Offers ranged from $250,000 for 35% to $250,000 for 50%. However, Mark Cuban and Robert Herjavec recognized the potential of Nuts ‘N More and made a joint offer of $250,000 for a 35% equity stake.
The offer included a tiered investment disbursement plan, providing the company with upfront capital and additional funding as needed to fulfill future purchase orders. After careful consideration and negotiation, the founders accepted the offer, acknowledging the value of having two seasoned investors onboard to support their growth journey.
