Peekaboo Ice Cream With Hidden Veggies
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2020
Asking For:
$800,000 for 8%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Peekaboo Organics produces super premium indulgent ice cream with hidden vegetables in various flavors.
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Background Story
Peekaboo Organics, founded by Jessica Levisan, entered the Shark Tank with a unique twist on ice cream. Levisan, a passionate ice cream enthusiast and a mother, created this innovative product because she wanted to find a way to make vegetables more appealing to kids. The company’s goal was to bridge the gap between the love for ice cream and the reluctance to eat vegetables, and thus, Peekaboo Organics was born.
Levisan’s idea was to create indulgent ice cream flavors that tasted just like regular favorites but included hidden vegetables. For example, their mint chip flavor contains two cups of spinach, while the strawberry flavor boasts 14 baby carrots in every container. This creative approach aimed to offer a fun and delicious way for children (and adults) to consume more vegetables while enjoying their ice cream.
The Product
Peekaboo Organics’ ice cream is real dairy ice cream with the added benefit of hidden vegetables. The company’s unique selling point is that the vegetables are virtually undetectable in taste or texture.
Customers can enjoy their favorite ice cream flavors while secretly getting their daily dose of veggies. The product line includes flavors like chocolate (with 10 cauliflower florets per container), vanilla (equivalent to a zucchini and a half), cotton candy (three baby beets), and strawberry (14 baby carrots).
Peekaboo Organics’ ice cream is positioned as a premium, indulgent treat, offering a guilt-free option for those who crave traditional ice cream but want to make a healthier choice.
It’s available in various stores, including Whole Foods, Safeway, ShopRite, Weis Markets, and Lazy Acres, making it accessible to a wide range of consumers. While the exact price is not mentioned in the transcript, it’s likely competitively priced within the premium ice cream market.
How It Went
The company’s position before Shark Tank
Peekaboo Organics had made impressive strides in a short time. At the time of the pitch, they were already in almost 900 stores and projected to be in 3,000 stores by the end of the year. Their sales since launch had reached $450,000, and they anticipated ending the year with $2.6 million in sales. The company had secured distribution deals with major retailers such as Whole Foods, Safeway, ShopRite, Weis Markets, and Lazy Acres.
In terms of funding, the founder, Jessica Levisan, had previously raised $1.2 million in an initial funding round, with a convertible note structure and a $5 million cap. However, in the Shark Tank pitch, she sought $800,000 for 8% equity.
The company’s quick expansion and presence in major retail outlets indicated its potential for growth. Peekaboo Organics’ success was attributed to its unique product offering, which appealed to health-conscious consumers and parents looking for creative ways to incorporate vegetables into their children’s diets.
The Negotiations:
The negotiation process in the Shark Tank was intense, with several sharks showing interest and concern about the valuation. Jessica Levisan initially asked for $800,000 for 8% equity, valuing the company at $10 million. The sharks were skeptical of this valuation, given the company’s limited sales history. Lori Greiner and Mark Cuban were the first to make offers. Lori offered a loan of $800,000 at 6% interest for three years, along with 5% equity.
Mark Cuban also offered a loan of $800,000 but at 9% interest for 8% equity. Kevin O’Leary and Robert Herjavec were critical of the valuation and the concept. They expressed concerns about competition from larger ice cream companies and the potential for the business to be acquired or crushed once it gained more success. Both Kevin and Robert chose not to invest.
Barbara Corcoran admired Jessica’s resilience but ultimately decided not to invest due to concerns about the company’s expansion and product line. In the end, Jessica declined Lori and Mark’s offers, as she was committed to the indulgent ice cream concept and not interested in expanding the product line to include healthier options. This left her without a deal but with praise for her performance in the tank.
