Ora Organic Plant Based Supplements
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 24, 2017
Asking For:
$375,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Ora Organic offers plant-based nutritional supplements, challenging the use of artificial chemicals in traditional supplements.
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Background Story
Ora Organic, a burgeoning player in the nutritional supplements industry, finds its roots in the collaborative efforts of two visionaries, Will and Ron. Hailing from the sunny locale of San Diego, Will and Ron’s journey began with a shared conviction to revolutionize the landscape of nutritional supplements. Ron, the culinary force behind Ora Organic, comes from a family deeply entrenched in the restaurant business, owning and operating six establishments. Growing up surrounded by the nuances of food, Ron’s trajectory took a decisive turn when his uncle succumbed to a heart attack at 55, and his grandfather underwent triple-bypass surgery.
The revelation that these health issues surfaced only after their move to the U.S. from Taiwan prompted Ron to leave his tech consulting job and dedicate himself to the pursuit of a healthier lifestyle. Will, Ron’s counterpart, boasts a background in strategy and operations consulting, particularly within the life sciences and healthcare sectors. The two entrepreneurs, not only business partners but also freshman-year roommates at U.C. Berkeley, forged a bond over a shared commitment to healthy living.
The impetus behind Ora Organic’s inception was the founders’ discontent with the questionable ingredients prevalent in traditional nutritional supplements. Ron’s culinary expertise and Will’s strategic insights converged to create a product line that would challenge the status quo. Their mission was clear: to offer plant-based, chef-designed nutrients derived from real food, eliminating the need for artificial chemicals. This commitment to authenticity and health formed the bedrock of Ora Organic’s vision, driving them to present their innovative products on the Shark Tank stage.
The Product
Ora Organic’s product lineup is a testament to their commitment to redefine nutritional supplements. At the core of their offerings are plant-based alternatives designed to replace traditional, chemically derived supplements. The product range includes an Omega-3 spray, a multivitamin powder, a multivitamin capsule, and a super-food protein powder.
The Omega-3 spray is a notable departure from fish-derived sources, utilizing microalgae for a sustainable and animal-friendly alternative. The multivitamin powder and capsule incorporate over 25 different fruits, vegetables, and superfoods, delivering a comprehensive and natural source of essential nutrients. Ora Organic’s super-food protein powder, presented in a baking recipe during the pitch, underscores the versatility of their offerings.
Notably, the founders emphasized the use of chef-designed nutrients, making their products not only health-conscious but also delicious. During the presentation on “Shark Tank,” the Sharks were treated to a tasting session, showcasing the appealing flavors and palatability of Ora Organic’s supplements.
How It Went
The company’s position before Shark Tank
Ora Organic showcased robust performance providing insight into its health, market position, and strategic direction. In under 10 months, the company achieved noteworthy sales, surpassing $400,000, a testament to the growing demand for their innovative plant-based nutritional supplements. The founders highlighted a rapid sales trajectory, reaching $65,000 per month within the initial seven months of operation. The company primarily sells its products through online channels, with a focus on expanding into major retailers such as Sprouts and Whole Foods.
The founders expressed their intention to scale quickly and explore partnerships with significant retail players, indicating a strategic shift from an online-centric model to a broader market presence. In terms of funding, Ora Organic shared that they had raised $150,000 on a convertible note, valuing the company at $2.2 million post-money. While the pitch did not delve into specific profit and loss figures, the founders’ emphasis on rapid growth and selling out of products indicates a healthy market demand.
The availability of capital, apart from the funds raised, was not explicitly disclosed. The founders’ backgrounds in consulting and culinary arts suggest a strategic and product-oriented foundation. Ora Organic’s focus on real food-derived supplements, combined with their online sales success and plans for retail expansion, positions them as a promising player in the competitive nutritional supplement industry.
The Negotiations:
The negotiations for Ora Organic on “Shark Tank” unfolded with a bold ask of $375,000 for a 5% equity stake. Kevin O’Leary stepped forward with an offer that deviated significantly from the founders’ proposal. He proposed to invest the requested amount but demanded a much larger 20% equity share, citing the competitive nature of the industry and the challenges the company might face in gaining market share. This offer prompted Mark Cuban and Lori Greiner to bow out, expressing reservations about market positioning and the retail appeal of Ora Organic’s products.
Robert Herjavec praised the sales figures but found the $7.5 million valuation unrealistic. He, too, decided to exit the negotiation. The negotiation spotlight then turned to Kevin O’Leary, who remained the sole interested Shark. However, the founders, confident in their product and its potential for rapid growth, respectfully declined Kevin’s offer. They believed the terms were unfavorable and reiterated their commitment to scaling quickly, expressing intentions to approach major retailers like Sprouts and Whole Foods.
Despite Kevin’s attempt to salvage the deal by suggesting a counteroffer, the founders held their ground. They politely declined the offer, leaving Kevin O’Leary regretful of the decision. The negotiation showcased the founders’ conviction in the value of their product and their determination to pursue avenues for rapid expansion, anticipating success in the broader retail market beyond the confines of the “Shark Tank” deal.
