The Good Promise Smoothies & Sauces
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 18, 2016
Asking For:
$100,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Good Promise offers convenient vegetable smoothie blends and hidden veggie pasta sauces to encourage healthy eating on the go.
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Background Story
Karen Posada, founder of The Good Promise, hails from Austin, Texas. The inspiration for the company came from the challenges faced with their initial product, pasta sauces, which had a high retail price and low-profit margin. The transition to vegetable smoothie blends aimed to offer a more affordable and convenient option for consumers. Despite facing criticism during the pitch, Karen remains resilient, having successfully secured distribution in Walmart for their pasta sauces and receiving investments from her mother and angel investors.
The Product
The Good Promise’s flagship product is a line of vegetable smoothie blends, such as Veggie Burst and Green Bloody Mary, providing an easy way for consumers to incorporate two servings of veggies into their diet. Additionally, they offer hidden veggie pasta sauces, designed to make it easier for kids to consume vegetables.
The smoothie blends are sold in pouches and are meant to be consumed directly, priced at $1.99 each, with a 40% profit margin. The product addresses the challenges of the initial pasta sauce line, offering a more competitively priced and faster-selling alternative.
How It Went
The company’s position before Shark Tank
The company’s journey began with pasta sauces, generating $260,000 in sales over 18 months. However, the challenges with the pasta sauces, including a high retail price and a low-profit margin of 23%, led to the decision to pivot to vegetable smoothie blends. The Good Promise secured distribution with Walmart Supercenters and received investments totaling $175,000 from Karen’s mother and angel investors. The shift in focus to the new product line aims to address the challenges faced with pasta sauces and is projected to be more profitable with a 40% profit margin.
The Negotiations:
Despite the initial optimism, the Sharks expressed dissatisfaction with the taste of the vegetable smoothie blends. Lori and Mark decided to opt out due to their preferences, while Kevin and Robert expressed concerns about the product’s taste and market positioning. Karen defended the taste based on positive feedback from 2,000 tastings. The Sharks, however, remained unconvinced, and all declined to invest.
Kevin even humorously remarked on the challenging taste. Despite the lack of a deal, Karen remained positive, expressing disappointment that the Sharks did not see the value beyond personal taste preferences. She highlighted the company’s ability to pivot and overcome challenges, suggesting that this experience would be no different.
