Petrol Fuel for Dogs
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$150,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Petrol Fuel for Dogs is a vitamin-enhanced water for dogs made with 100% all-natural flavorings and six added vitamins and minerals.
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Background Story
Julie and Ryan are from Cornelius, North Carolina, and Gahanna, Ohio, respectively. They introduced Petrol Fuel for Dogs, a unique beverage for dogs that aims to provide variety to their drinking options. The idea originated from Julie’s love for dogs and her desire to offer them more than plain water.
She collaborated with a veterinary nutritionist to formulate a vitamin-enhanced water with natural flavors beneficial for dogs’ health. The product gained attention at a trade show, but due to funding challenges, they had to shelve the idea temporarily. The company was revived 18 months ago when Ryan joined, investing $25,000 to kickstart the venture.
The Product
Petrol Fuel for Dogs is a vitamin-enhanced water designed to offer dogs a more exciting drinking experience than plain water. It is made from 100% all-natural flavorings and includes six added vitamins and minerals beneficial for dogs’ overall health.
The product was developed in collaboration with a veterinary nutritionist to ensure it meets the specific nutritional needs of dogs. It comes in various flavor profiles, with the current winner being a savory option that dogs reportedly love.
The founders highlight that dogs prefer Petrol over regular water, with a claimed consumption rate of 4 to 1. During the pitch, they showcase a loyal customer and her agility dog, Rocco, who enthusiastically enjoys Petrol Fuel for Dogs.
The product is positioned as a refreshing and hydrating alternative for dogs, providing essential nutrients in a delicious form. The founders emphasize all-natural ingredients, including B-complex, biotin, niacin, and L-carnitine, promoting the product as a healthy and enjoyable choice for dogs.
The pricing and distribution details are not explicitly mentioned in the pitch, but they reference a crowdfunding campaign that helped them restart the company. However, they reveal they are currently out of product, which is why they are seeking investment in Shark Tank.
How It Went
The company’s position before Shark Tank
Petrol Fuel for Dogs faced challenges in its initial phase a decade ago due to funding difficulties, leading to a temporary shelving of the product. They attempted to secure a small-business loan, but the economic climate in 2010 made it unfeasible. Despite garnering interest from over a dozen companies for exporting the product, they couldn’t proceed at that time. The company was revitalized 18 months ago when Ryan joined, investing $25,000.
During this period, they conducted a crowdfunding campaign that generated funds for restarting production. However, they disclose that their sales for the last 16 months amount to $16,000, and they are currently out of product. The founders express a sense of urgency, indicating that they believe it’s a race to establish their product in the functional beverage market for dogs. The lack of significant sales and the current absence of product inventory raise concerns about the company’s financial health and operational efficiency.
The Negotiations:
The negotiation process becomes challenging as the Sharks express concerns about the company’s history, funding choices, and current performance. Julie and Ryan sought a $150,000 investment for a 20% stake in the company. The Sharks, particularly Mark Cuban and Lori Greiner, question the business decisions made in the past, highlighting the apparent lack of financial prudence. The founders explain their initial struggles, including funding challenges and the decision to shelve the product temporarily.
Despite their passion for dogs and belief in the product, the Sharks are skeptical about the company’s viability. The absence of significant sales and product inventory becomes a major point of contention. As a result, none of the Sharks make an offer, and Petrol Fuel for Dogs leaves the Tank without securing a deal. The Sharks emphasize the importance of strategic planning and financial management for the company’s future success.
