Pricklee Cactus Water
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2022
Asking For:
$200,000 for 5%
Investor:
Barbara Corcoran
Deal:
$200,000 for 5%
PRODUCT SUMMARY
Pricklee offers cactus water as a low-calorie, low-sugar alternative to coconut water, rich in antioxidants and derived from the prickly pear cactus.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Kun and Mo, the co-founders of Pricklee, are based in Boston, where they embarked on their mission to revolutionize the beverage industry with their innovative cactus water product. Kun, drawing inspiration from his childhood memories in Lebanon, recalls his grandmother’s traditional practice of creating cactus water from the prickly pear plant. This cherished family tradition, coupled with Kun’s passion for sustainable food practices, sparked the idea to introduce this unique beverage to a wider market.
With a background rooted in a deep appreciation for natural, healthy alternatives, Kun and Mo combined their expertise and shared vision to create Pricklee. Kun’s personal connection to the product’s origins and his determination to promote sustainable, nutritious beverages provided the foundation for Pricklee’s ethos. Mo’s complementary skills and dedication to building a brand centered around wellness and mindful consumption played a vital role in the company’s formation.
Their journey from nostalgia-driven inspiration to the launch of Pricklee reflects their commitment to offering consumers a refreshing and wholesome alternative to conventional coconut water. Guided by their cultural roots and a passion for promoting sustainable food practices, Kun and Mo have established Pricklee as a promising player in the beverage industry, driven by a strong sense of purpose and a commitment to providing a healthier, more environmentally conscious option for consumers.
The Product
Pricklee, the brainchild of Kun and Mo, offers an enticing array of cactus water beverages designed to provide a healthier, low-calorie alternative to traditional coconut water. Crafted from the prickly pear cactus, Pricklee’s beverages come in three distinct flavors: Prickly Pear Original, Strawberry Hibiscus, and Mango Ginger. Each can is a refreshing blend of flavors, with the Prickly Pear Original boasting hints of watermelon and bubblegum, while the Strawberry Hibiscus and Mango Ginger varieties offer unique, tangy profiles.
Positioned as a guilt-free indulgence, Pricklee’s cactus water contains only 35 calories per can, with a minimal sugar content of 7 grams, catering to health-conscious consumers seeking a tasty, hydrating beverage without the excess calories. What sets Pricklee apart is its rich antioxidant content, including betalains, polyphenols, and taurine, along with a notable presence of vitamin C. These components contribute to its appeal as a nutritious and revitalizing alternative to traditional hydration options.
Pricklee’s products are currently available for purchase through various retail channels, including regional distributors in the Northeast and select retail outlets. With a focus on sustainability and promoting a healthier lifestyle, Pricklee aims to provide consumers with a flavorful and nourishing beverage option that aligns with their values of wellness and environmental consciousness.
How It Went
The company’s position before Shark Tank
Pricklee has made significant strides in the beverage industry since its launch, demonstrating robust growth and promising market positioning. The company has forged key partnerships with prominent distributors, including UNFI and regional distributors in the Northeast, securing a strong foothold in the retail market. These partnerships have enabled Pricklee to expand its product reach and enhance its brand visibility within the targeted geographic regions.
With a dedicated focus on promoting sustainability and offering health-conscious alternatives, Pricklee has successfully cultivated a loyal customer base comprising individuals seeking nutritious and flavorful hydration options. By catering to the growing demand for low-calorie, low-sugar beverages with substantial antioxidant content, Pricklee has positioned itself as a frontrunner in the evolving market for functional, plant-based drinks. In terms of financial performance, Pricklee has exhibited robust sales growth, achieving a notable milestone of $55,000 in sales during its recent peak month, with projections indicating a further increase to $70,000 in the current month.
While the company has reported promising revenue figures, it has also focused on optimizing its production costs, with current production expenses standing at $1 per can and plans underway to reduce this cost to 65 cents through negotiations with key partners and suppliers. The company’s funding primarily stems from its equity offerings and strategic partnerships, emphasizing the importance of capital infusion to support its operational expansion and bolster its sales and distribution efforts. Pricklee’s financial stability and available capital have enabled the company to invest in building a robust operations team and an effective sales force, laying the groundwork for future growth and market penetration.
The Negotiations:
During the intense negotiations on Shark Tank, the co-founders of Pricklee, Kun and Mo, faced a range of challenges and opportunities as they sought investment for their cactus water brand. Initially, the Sharks expressed skepticism about the competitive beverage market and the potential difficulties in distribution and customer acquisition. However, the co-founders effectively communicated Pricklee’s unique selling points, emphasizing its low-calorie, low-sugar content and rich antioxidant profile derived from the prickly pear cactus.
Barbara Corcoran, acknowledging the company’s potential, offered $200,000 for 10% equity with a royalty, reflecting her confidence in the product and the founders’ vision. In response, Kun and Mo proposed a counter-offer, suggesting the original ask of $200,000 for 5% equity in the form of a line of credit, highlighting the value Barbara could bring as an advisor. Barbara ultimately accepted the counter-offer, recognizing the founders’ passion and commitment to their mission.
Despite the hesitation of other Sharks due to the challenges inherent in the beverage industry, Kun and Mo’s persistence and dedication to their business impressed Barbara, leading to a successful deal. The negotiations underscored the importance of securing capital for Pricklee’s growth while highlighting the significance of strategic partnerships and sustainable business practices in the competitive consumer goods landscape.
