Vade Nutrition Protein Shakes
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 25, 2018
Asking For:
$250,000 for 10%
Investor:
Mark Cuban, Alex Rodriguez (50/50)
Deal:
$700,000 for 40%
PRODUCT SUMMARY
Vade Nutrition offers dissolvable protein scoops—a full serving of protein powder wrapped in an edible film that dissolves instantly when shaken or blended in water, milk, or other drinks, providing a convenient on-the-go protein solution.
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Background Story
Vade Nutrition, founded by Joe and Megan Johnson in East Lansing, Michigan, has a unique origin rooted in the everyday challenges of fitness enthusiasts. Joe, a finance graduate and former wrestler, found himself frustrated with the mess and inconvenience associated with traditional protein powder usage after his workouts. This routine inconvenience prompted him to seek a more efficient solution. The idea for Vade Nutrition’s dissolvable protein scoops struck when Joe, a dedicated gym-goer, faced the common issue of losing the protein scooper and dealing with the hassle of measuring and carrying powdered supplements on the go.
The moment of inspiration came when the couple realized the need for a cleaner, more convenient protein consumption experience, especially for those with active lifestyles. With a background in finance and a passion for fitness, Joe and Megan embarked on a journey to revolutionize the protein supplement industry. Their commitment to innovation led them to develop dissolvable protein scoops—a full serving of protein powder encapsulated in an edible, food-grade film that dissolves instantly when mixed with water, milk, or any preferred beverage. This breakthrough eliminates the need for measuring, reduces environmental waste, and offers a hassle-free on-the-go protein solution.
Despite facing challenges, including a setback with a wrongly flavored product launch, the founders persevered and secured a utility patent for their unique packaging mechanism. Their dedication to providing a superior protein consumption experience, combined with their background in finance and sports, positioned Vade Nutrition as an innovative player in the fitness and nutrition industry. The company’s roots in addressing a common problem with a creative solution reflect the founders’ commitment to making a positive impact on the lives of health-conscious individuals.
The Product
Vade Nutrition’s groundbreaking product, dissolvable protein scoops, redefines the way individuals consume protein supplements. Each serving comprises 20 grams of 100% whey isolate protein, offering a lean and effective nutritional boost with only 90 calories, 2 carbs, 1 gram of fat, and zero sugar. The dissolvable film, made from 100% food-grade ingredients, is entirely safe and edible.
The product’s innovative design simplifies the protein shake preparation process. Users can effortlessly incorporate the dissolvable protein scoop into water, milk, or their favorite beverage. The film dissolves instantly when shaken or blended, creating a convenient, mess-free protein shake ready to drink. This eliminates the need for traditional scooping and measuring, making it ideal for those on the go.
Vade Nutrition’s dissolvable protein scoops stand out for their versatility. They can be used in various beverages, including smoothies or juices, catering to diverse taste preferences. The product’s compact and portable nature makes it an excellent choice for fitness enthusiasts, travelers, or anyone seeking a quick and efficient protein source.
Customers can purchase Vade Nutrition’s dissolvable protein scoops directly from their website or through online retailers like Amazon. Priced competitively at $1.50 per serving, the product offers affordability without compromising on quality. With its unique delivery system, lean nutritional profile, and user-friendly design, Vade Nutrition’s dissolvable protein scoops represent a revolutionary approach to protein supplementation, meeting the needs of those pursuing an active and health-conscious lifestyle.
How It Went
The company’s position before Shark Tank
Vade Nutrition, since its inception, has demonstrated resilience and innovation in the competitive health and nutrition industry. The company’s current health and position showcase a promising trajectory, with total revenues reaching $80,000. Notably, $30,000 of this revenue was generated in the past month, indicating a recent uptick in sales. The company has strategically positioned itself in the market by testing its dissolvable protein scoops, a unique and convenient protein supplement, which addresses the challenges of traditional protein powder usage. Vade Nutrition’s patent-pending dissolvable packaging mechanism serves as a significant competitive advantage, offering a distinct point of difference in the industry.
In terms of distribution, Vade Nutrition primarily sells its products online through its official website and major e-commerce platforms like Amazon. This direct-to-consumer approach aligns with their emphasis on social media marketing, where over a quarter of website traffic is generated organically, showcasing a strong online presence and potential for customer acquisition. While the founders, Joe and Megan Johnson, have faced challenges, such as a product batch setback and an initial investment of $300,000 in inventory, they have navigated through these hurdles. Their dedication to quality and innovation is reflected in securing a utility patent for their dissolvable packaging, a testament to their commitment to long-term success.
As for funding, the company has not relied on external sources like Kickstarter, and its current financial position is strengthened by the recent injection of capital from the successful Shark Tank deal. With a $700,000 investment from Mark Cuban and Lori Greiner, Vade Nutrition has gained not only financial support but also the strategic guidance and networks of two seasoned entrepreneurs. This influx of capital positions the company for expansion, marketing initiatives, and potential product diversification. The company’s structure is evolving with the new investment. The partnership with Mark Cuban and Lori Greiner brings not just capital but also mentorship and expertise. With their combined efforts, Vade Nutrition aims to leverage its unique product offering and innovative approach to become a significant player in the health and nutrition market.
The Negotiations:
The negotiations for Vade Nutrition’s dissolvable protein scoops on Shark Tank were marked by strategic maneuvering and competitive offers from the Sharks. The initial ask was $250,000 for 10% equity, setting the stage for a dynamic exchange. Mark Cuban, recognizing the potential of the product and emphasizing his value in steering the company away from potential mistakes, made the first offer. He proposed $350,000 for a 20% equity stake. Lori Greiner joined forces with Cuban, collectively offering $700,000 for a 40% stake. This collaborative approach highlighted their belief in the product’s potential for substantial growth.
The negotiation took an unexpected turn when Kevin O’Leary expressed interest but remained uncertain about making an offer. Sensing an opportunity, Cuban and Greiner refined their joint offer, proposing $700,000 for 25% equity, a reduced stake but with the same substantial investment. This revised offer triggered a pivotal moment for the founders, Joe and Megan Johnson. Another Shark, Barbara Corcoran, hinted at making an offer, adding an element of suspense to the negotiation.
Ultimately, after brief deliberation, the founders chose to accept Cuban and Greiner’s revised offer of $700,000 for 25%, citing the tremendous value and expertise that the “dream team” of Cuban and Greiner represented. The negotiation showcased the founders’ ability to navigate offers and make strategic decisions in a high-pressure environment. The partnership with Mark Cuban and Lori Greiner not only secured substantial funding but also brought onboard seasoned mentors and collaborators, positioning Vade Nutrition for accelerated growth and success in the health and nutrition market.
