Pinole Blue Corn Superfoods
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 25, 2022
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Pinole Blue is a line of products made from 100% USDA organic heirloom blue corn sourced from Mexico, known for its health benefits and historic use by the Tarahumara community.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Pinole Blue, based in Chihuahua, Mexico, and founded by Eddie, Kate, and Kyle, has a deeply rooted story that intertwines cultural heritage, determination, and a passion for bringing a traditional superfood to the United States. Eddie’s personal history is shaped by his parents’ immigrant journey to the U.S., where they faced significant challenges to establish a new life. This background instilled in him a profound appreciation for resilience and hard work, serving as a driving force behind his entrepreneurial spirit.
After discovering the endurance-enhancing properties of pinole, an ancient Mesoamerican superfood traditionally consumed by the Tarahumara community in Mexico, Eddie was inspired to introduce it to the American market. Fueled by memories of his parents’ sacrifices and a desire to pay homage to his cultural roots, Eddie embarked on a mission to bring this nutritious product to a wider audience.
Eddie’s encounter with Professor Kate during his college years played a pivotal role in the formation of Pinole Blue. Kate’s expertise in business and her shared enthusiasm for Eddie’s idea led to a dynamic partnership that laid the groundwork for the company’s inception. With their shared vision and determination, they recruited Kyle, leveraging his engineering background and social media acumen to further propel the business forward. Together, the founders embarked on a journey, initially starting with a modest quantity of blue corn sourced from Mexico.
The Product
Pinole Blue offers a range of products centered around the nutrient-rich organic heirloom blue corn, sourced directly from Mexico and processed using traditional stone-ground methods. This unique corn variety boasts a plethora of health benefits, including high levels of antioxidants, complex carbohydrates, and elevated protein content compared to conventional corn varieties.
Their product line includes an array of enticing offerings such as the Azulita cookie, Enduro-Bites, atole latte, and their signature stone-ground tortillas, each designed to showcase the versatility and nutritional value of blue corn. The Azulita cookie, known for its rich and flavorful taste reminiscent of a peanut butter no-bake cookie, serves as a delectable treat for health-conscious consumers. The Enduro-Bites offer a convenient and energy-boosting snack option, ideal for individuals seeking sustained vitality throughout their day.
Furthermore, the atole latte presents a delightful beverage choice, combining the richness of atole with the smoothness of a latte, providing a unique and culturally inspired drinking experience. The highlight of their product range, the stone-ground tortillas, distinguishes itself with its traditional preparation method, appealing to consumers looking for an authentic and wholesome culinary option.
How It Went
The company’s position before Shark Tank
Pinole Blue has exhibited notable progress since its inception, demonstrating a robust sales performance with lifetime sales reaching $720,000 and a projected $730,000 for the current year. The company’s strong emphasis on its unique blue corn products has resonated with a niche customer base, particularly within the Hispanic community. However, the founders acknowledge the necessity of expanding their customer demographic beyond this specific market segment to ensure sustainable growth and long-term success.
The company has primarily focused on establishing its presence within the local and regional market, emphasizing the utilization of its stone-ground tortillas as an entry point to introduce consumers to the broader range of Pinole Blue products. Despite demonstrating promising sales figures, the company’s net profits were relatively modest, exceeding just over $5,000 last year. This indicates the company’s ongoing need for strategic financial planning and efficient resource allocation to optimize profitability. Additionally, the founders highlighted their perseverance in the face of adversity, referencing the challenges they encountered, including the tragic loss of Kate’s husband in 2018, which impacted the company’s trajectory.
Regarding the company’s current structure, the specifics of its internal organization, available capital, and funding sources were not extensively discussed during the pitch. However, the founders’ resourcefulness and commitment to their entrepreneurial journey suggest a lean and agile organizational framework, characterized by a hands-on approach to business operations and a strong focus on product development and market expansion. Despite facing challenges, Pinole Blue’s performance underscores its potential for further growth and market penetration, provided the company effectively addresses scalability concerns and diversifies its customer base to achieve sustainable profitability.
The Negotiations:
During the negotiations on “Shark Tank,” the founders of Pinole Blue presented their inspiring story and unique product line to the panel of investors. While the Sharks acknowledged the company’s commendable sales and the founders’ resilience, concerns were raised regarding the company’s limited scalability and challenges in expanding beyond the niche Hispanic market.
Despite expressing appreciation for the product’s quality and the founders’ compelling narrative, the Sharks ultimately refrained from making an investment. Kevin O’Leary, while admiring the product, highlighted the challenge of effectively communicating the company’s unique story to a broader audience. The Sharks emphasized the necessity for a more concrete plan for expansion, expressing reservations about the company’s early stage and the need for a clear path to substantial growth and profitability.
While the founders’ determination and perseverance were recognized, the Sharks hesitated to commit due to the company’s dependence on a specific market segment. Lori Greiner, for instance, acknowledged the company’s potential but deemed it too early for her to invest. Ultimately, the offers from the Sharks were not in line with the founders’ expectations, leading to no deal being made. Despite the setback, the founders remained resolute, affirming their commitment to continue their journey and prove the company’s potential for future success.
