Sunniva Super Coffee
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 11, 2018
Asking For:
$500,000 for 4,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Sunniva is the world's first super coffee, made from organic Colombian coffee beans blended with 10 grams of lactose-free protein and healthy fats from coconut oil for lasting fuel.
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Background Story
The DeCicco brothers, Jordan, Jake, and Jimmy, grew up in Kingston, New York. As college athletes, they faced fatigue and a lack of healthy energy alternatives, leading them to create Sunniva in Jordan’s dorm room. They dropped out of school and left jobs to pursue their vision of offering a healthy alternative to traditional bottled coffee and energy drinks.
Sunniva was born from the idea of blending organic Colombian coffee beans with protein and healthy fats. Over 18 months, they expanded their product, gaining sales traction and partnering with the Compass Group, the world’s largest food service provider. The brothers sought a Shark to help refine their business fundamentals and expand Sunniva’s reach.
The Product
Sunniva’s super coffee stands out in the ready-to-drink coffee space by combining organic Colombian coffee beans, 10 grams of lactose-free protein, and healthy fats from coconut oil. The result is a beverage that provides lasting fuel without the unhealthy elements found in many competitors.
The available flavors include vanilla bean, maple hazelnut, dark mocha, and an unsweetened, sugar-free black brew. The taste profile emphasizes affordability, healthiness, and a relatively low-calorie content, appealing to millennials. The product is positioned as a more affordable and healthier option compared to established brands, with a competitive price point.
How It Went
The company’s position before Shark Tank
Sunniva has generated $600,000 in sales to date, with projections of $2.1 million for the current year. They secured partnerships with major retailers like Whole Foods, Target, Wegmans, and Wawa. Notably, they signed a national partnership with the Compass Group, a food-service giant with $20 billion in annual revenue. Sunniva had a 43% gross margin, and its cost per bottle was $1.05.
The product’s shelf price was $3.29, making it a competitive choice in the beverage category. The brothers had raised $1.3 million at a $7.5 million valuation, with plans to utilize the investment for hiring sales reps and expanding distribution.
The Negotiations:
The DeCicco brothers sought a $500,000 investment for a 4.5% stake, valuing the company at $10 million. The sharks expressed concerns about the high valuation given the company’s current revenue of $400,000. Despite the promising partnerships and distribution channels, Barbara Corcoran cited taste issues as a reason for her exit. Mark Cuban and Rohan Oza were impressed with the product but were hesitant about the substantial investment required in the beverage space.
They both opted out. Robert Herjavec showed interest but had reservations about the taste aftertaste. Ultimately, none of the sharks made an offer, and the DeCicco brothers left the tank without a deal. Despite not securing an investment, the brothers remained confident in their product and vision, emphasizing their love, trust, hustle, and determination to succeed.
