P-nuff Crunch Peanut Snack
DEAL
EPISODE SUMMARY
🕓 Air Date: October 23, 2020
Asking For:
$300,000 for 10%
Investor:
Mark Cuban
Deal:
$400,000 for 25%
PRODUCT SUMMARY
P-nuff Crunch is a healthy and nutritious peanut-based crunchy puff snack made from high-quality plant-based protein, healthy carbohydrates, and fiber.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Dr. Juan Salinas, the founder and CEO of Perfect Life Nutrition, has a PhD in food science and 25 years of experience creating snacks for large food companies. Frustrated by the lack of healthy options in the market, he decided to create P-nuff Crunch, a nutritious and delicious peanut-based snack.
Dr. Salinas, a former competitive bodybuilder and certified sports nutritionist, understands the importance of what we put in our bodies and wanted to offer a healthier alternative to traditional snacks. He immigrated to the United States from Honduras at the age of 16, earned his degrees with honors, and worked for some of the largest food companies in the country before starting his own venture.
The Product
P-nuff Crunch is a unique snack that stands out in the healthy snacking market. It’s made from a combination of high-quality plant-based protein, healthy carbohydrates, and fiber, providing long-lasting energy and satisfaction.
With just 3 grams of sugar, 5 grams of protein, and 130 calories per serving, it’s a guilt-free treat. The product comes in three flavors: roasted peanut, roasted peanut and cinnamon, and roasted peanut and cocoa.
The snack is available in 450 stores, both in the United States and overseas, and is distributed through various channels.
Its unique nutritional profile and complete protein content make it an excellent choice for those looking to snack healthily and stay fit.
How It Went
The company’s position before Shark Tank
While P-nuff Crunch is a promising product, its sales have been modest, with $104,000 in revenue the previous year. However, this is attributed to the challenges of finding a suitable manufacturing facility due to peanut oil contamination issues. Dr. Salinas invested $375,000 of his own funds to establish his manufacturing facility, which only started operating in 2019.
Currently, the product is sold in 450 stores and overseas markets through distributors. Year-to-date sales were at $65,000, with a projection to reach $200,000 by the end of the year. The company is looking to expand aggressively and anticipates hitting $1.5 million in sales the following year.
P-nuff Crunch operates with a 55% margin, costing $1.70 to the distributor and 75 cents to produce. Despite the modest sales figures, the snack market is a $35 billion business with potential for growth. Dr. Salinas sought the Sharks’ investment and expertise to help propel the brand to new heights.
The Negotiations:
The pitch generated immediate interest from the Sharks, with Mark Cuban making the first offer of $400,000 for 25% equity. Dr. Salinas initially hesitated but eventually accepted Mark’s offer, recognizing the value of having Mark’s expertise and resources behind the product.Throughout the negotiations, Dr. Salinas emphasized the potential of P-nuff Crunch to become a $100 million brand within a few years.
Other Sharks were also intrigued by the product but did not match Mark’s offer. Ultimately, Mark’s enthusiasm for the product and his willingness to play an active role in its growth won over the founder, leading to a successful deal.
Mark’s investment of $400,000 for 25% of the company will provide the necessary capital to expand P-nuff Crunch’s reach and continue its growth trajectory. Dr. Salinas was visibly emotional after accepting the deal, recognizing the significant milestone in his entrepreneurial journey and the potential for his product to make a lasting impact in the healthy snack market.
