Palmini Pasta
DEAL
EPISODE SUMMARY
đŸ•“ Air Date: February 25, 2018
Asking For:
$300,000 for 10%
Investor:
Lori Greiner, Mark Cuban (50/50)
Deal:
$300,000 for 25%
PRODUCT SUMMARY
O.A. Foods presents Palmini, a healthy pasta alternative made from hearts of palm, low in calories, carbs, sugar, and gluten-free.
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Background Story
Alfonso Tejada, originally from Bolivia and now residing in Miami, is the visionary founder behind O.A. Foods. Alfonso’s entrepreneurial journey began in 2009 when he recognized the untapped potential of quinoa and embarked on importing it to the United States. This venture proved successful, laying the foundation for his subsequent exploration into the health food industry. Inspired by the growing demand for healthier food options and his own experiences, Alfonso delved into creating Palmini, a pasta substitute that addresses the health concerns associated with traditional pasta.
Driven by a desire to revolutionize the pasta market, Alfonso spent two years developing a proprietary, patent-pending machine that transforms hearts of palm into linguine-like strands. His background includes graduating summa cum laude from the University of Florida’s business school and working in his family’s agricultural machinery business in Bolivia. This diverse experience positioned him to recognize opportunities in the food industry and to innovate with Palmini.
The Product
Palmini emerges as a game-changing pasta alternative that not only satisfies the palate but also aligns with health-conscious consumer preferences. Made exclusively from hearts of palm, Palmini offers a guilt-free solution to pasta lovers worldwide.
With a mere 15 calories, 3 grams of carbs, no sugar, and gluten-free composition, it successfully avoids the undesirable attributes associated with traditional pasta—calories, carbs, sugar, and gluten.
The preparation of Palmini is a hassle-free experience, providing consumers with a quick and convenient option for a healthy meal. Ready to eat straight from the can, Palmini requires a simple process: open, rinse, add the desired sauce, heat, and enjoy.
Priced at $9.99 on Amazon, the product is positioned to cater to the demand for both convenience and health-conscious choices.
How It Went
The company’s position before Shark Tank
As of the pitch, O.A. Foods had experienced success with Palmini, selling about 2,000 units totaling $50,000 within three months. Alfonso Tejada, with a background in business and experience in his family’s agricultural machinery business in Bolivia, had earlier achieved a $400,000 sales figure with the importation of quinoa. Palmini’s uniqueness lies in the patent-pending machine that processes hearts of palm into linguine shapes, although concerns were raised about potential competition from larger players.
The Negotiations:
The Sharks expressed a mix of enthusiasm and skepticism during the pitch. While they acknowledged the innovative aspect of Palmini and the rising trend in healthier food alternatives, concerns were raised about the product’s vulnerability to competition from larger food corporations. Bethenny Frankel, John, and Robert Herjavec ultimately opted out, citing doubts about the sustainability of Palmini’s unique selling proposition in the face of potential replication.
Mark Cuban and Lori Greiner, however, recognized the potential in the healthy food trend and made a joint offer of $300,000 for 25%. After some negotiation, Alfonso agreed to the deal, forming a partnership with Mark Cuban and Lori Greiner. Despite giving more equity than initially planned, Alfonso was thrilled to have two enthusiastic Sharks on board.
The negotiation showcased the Sharks’ diverse perspectives on the health food industry, with some expressing reservations about the product’s competitive edge and others recognizing its potential for widespread appeal.
