PRO-NRG – Protein-infused Flavored Water
DEAL
EPISODE SUMMARY
🕓 Air Date: October 19, 2012
Asking For:
$250,000 for 15%
Investor:
Daymond John
Deal:
$250,000 for 30%
PRODUCT SUMMARY
PRO-NRG is a unique protein-infused flavored water designed for rehydration, replenishment, and refreshment after workouts.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Tania Patruno and NFL running back Brandon Jacobs co-founded PRO-NRG. Tania, frustrated with ineffective weight loss products, aimed to create a solution focused on hydration and nutrition basics. She hustled to secure placements for PRO-NRG in over 3,000 stores in New York. Brandon Jacobs, known for his successful football career, joined the company as an endorser, leveraging his influence and locker room experiences to promote the product.
The Product
PRO-NRG is a protein-infused flavored water designed to provide hydration, essential vitamins, and energy support without fat, caffeine, or added sugar. Each 4-ounce bottle contains 15 grams of whey protein along with an energy blend.
The product is positioned as a complement to workouts, aiming to aid in muscle recovery and energy replenishment. It retails for $3.99 and is available in various retailers, including delis, markets, and big-box stores. Customers can purchase PRO-NRG for post-workout recovery or as a refreshing beverage option.
How It Went
The company’s position before Shark Tank
PRO-NRG has achieved significant distribution, with placements in over 3,000 stores within three months of launching. Despite limited time on the market, the company has generated $126,000 in sales, indicating promising traction. However, concerns arise regarding the company’s margins, as it costs $1.10 to produce each bottle, sold to wholesalers at $1.80, resulting in a slim profit margin.
Distributors currently earn more from each sale than the company itself. While the product has gained popularity in New York, it faces challenges in scaling nationally. The founders have invested $75,000 in the business, seeking additional funding to fulfill purchase orders and expand into the national market. PRO-NRG’s structure includes Tania Patruno as the driving force behind sales and distribution, supported by Brandon Jacobs’ endorsement and promotional efforts.
The Negotiations:
The sharks express concerns about the company’s high valuation, slim margins, and unclear messaging. While impressed by the founders’ tenacity and distribution achievements, most sharks opt out due to these concerns. Daymond John offers a deal of $250,000 for 30% equity, contingent on securing a partnership with his supplement company, Bad Ass.
He emphasizes the need for clearer messaging and utilizing Brandon Jacobs’ influence effectively. Tania accepts the offer, recognizing the value of Daymond’s expertise and connections in navigating the industry. The negotiation showcases the challenges of entering the competitive energy drink market and the importance of strategic partnerships for growth.
