Pili Hunters – Wild Sprouted Pili Nuts
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 3, 2019
Asking For:
$325,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Pili Hunters offers the world's healthiest nut, the pili nut, known for its ultra-buttery and fatty texture, in various flavors, nut butters, and low-carb chocolates.
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Background Story
Founded by Jason Thomas, Pili Hunters originated from his discovery of the pili nut during a kite-surfing trip to the Philippines. Impressed by its unique taste and nutritional profile, Jason, inspired to share this superfood, began importing the nuts to the United States.
The company started with a modest beginning, with Jason personally selling the nuts to stores, including the well-known natural-food store Erewhon. Jason’s journey reflects the classic entrepreneurial story—bootstrapping, relentless dedication, and creativity. His venture not only brought a new nut to the American market but also created jobs and made a significant impact on the keto community.
The Product
Pili Hunters’ flagship product is the pili nut, renowned for its exceptional taste and nutritional benefits. The nuts are available in various flavors, including nut butter, and low-carb chocolates. Jason showcased the manual process of opening each nut with a machete, emphasizing the authenticity and dedication to quality.
The pili nut is positioned as the lowest carb and highest fat nut globally, making it popular among health-conscious consumers, particularly those following a keto diet. Pili nut butter offers a convenient and delicious way to enjoy the unique flavor and benefits of pili nuts. The low-carb chocolates contribute to the product line, appealing to consumers looking for healthier chocolate options.
How It Went
The company’s position before Shark Tank
Pili Hunters has achieved total sales of $2.5 million over 4.5 years, with notable growth in recent years. The business began with an impressive start, securing a deal with Erewhon for the initial sale. Despite the challenging early days of makeshift packaging in a Santa Cruz hotel, Jason persevered and scaled the business.
The company’s total SKUs include around 14 products, ranging from flavored pili nuts to nut butter and low-carb chocolates. With $400,000 tied up in inventory, Pili Hunters has experienced challenges related to the cash flow and inventory management associated with its diverse product line.
The Negotiations:
The negotiation started with Jason seeking $325,000 for 10% equity, valuing the company at $3.25 million. The Sharks expressed concerns about the scalability of the business and the challenges associated with the manual processing of pili nuts. Despite acknowledging the uniqueness of the product, the Sharks gradually bowed out, citing concerns about focus, scalability, and the overall market potential.
Mark Cuban emphasized the need for an operating team, which Jason acknowledged but couldn’t find the right fit at the moment. Ultimately, none of the Sharks made an offer, leaving Jason without a deal. The Sharks admired Jason’s entrepreneurial journey and the quality of the product but expressed reservations about the business’s scalability and the challenges of maintaining focus with a diverse product line. Jason left the Tank without a deal but with the Sharks acknowledging the merit of his story and product.
