Victoria’s Kitchen Almond Water
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 30, 2015
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Victoria's Kitchen offers an all-natural, vegan, soy-free, dairy-free, GMO-free, and gluten-free almond water in two flavors – Almond Water Original (almond, vanilla, and rose) and Almond and Coconut.
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Background Story
Victoria’s Kitchen, founded by David and Deborah from Paris, France, has a heartwarming background story that intertwines family traditions with entrepreneurial spirit. David and Deborah, a husband-and-wife duo, migrated to the U.S. from Paris, bringing with them a cherished family recipe passed down from David’s grandmother, Victoria. Unlike the typical American grandmothers who might whip up lemonade or sweet iced tea, Victoria specialized in creating an exquisite almond water.
Upon settling in the U.S., David and Deborah decided to share this one-of-a-kind French recipe with a broader audience. The idea took root when the couple observed the enthusiastic response from friends who couldn’t get enough of their almond water. Always harboring a dream of starting a business together, they seized the moment and asked themselves, “Pourquoi pas l’eau d’amande?” or “Why not almond water?”
Victoria’s Kitchen Almond Water is a testament to the couple’s commitment to preserving a family legacy and introducing a taste of the South of France to a global audience. The product encapsulates the essence of lounging in the freshly cut grass of the South of France, bringing a piece of David’s grandmother’s tradition to consumers’ homes. This venture represents not just a business for David and Deborah but a journey that began with the migration from Paris, the embrace of a family recipe, and the ambition to turn a beloved beverage into a successful enterprise on American soil.
The Product
Victoria’s Kitchen Almond Water is a delightful beverage that captivates the taste buds with its unique blend of flavors and commitment to natural, vegan, and health-conscious qualities. Crafted from a traditional French recipe passed down through generations, this almond water is a refreshing departure from conventional drinks.
The original flavor combines almond, vanilla, and rose, delivering a light and crisp experience. Another variant, Almond and Coconut, adds a tropical twist to the beverage. Boasting 110 calories per bottle for the original flavor and 100 calories for the almond and coconut variant, Victoria’s Kitchen Almond Water is a guilt-free indulgence.
It is suitable for vegans, soy-free, dairy-free, GMO-free, and gluten-free, making it an inclusive choice for a diverse audience. The packaging, designed to be both attractive and functional, adds to the overall appeal, making Victoria’s Kitchen Almond Water a go-to choice for those seeking a taste of the South of France in a health-conscious and refreshing beverage.
How It Went
The company’s position before Shark Tank
Victoria’s Kitchen has demonstrated promising performance in the competitive beverage market. The company’s health and position have been marked by steady growth since its inception. In their third year, sales for the first 8 months were reported at approximately $210,000 to $220,000, showcasing resilience in a challenging market. The founders, David and Deborah, invested $250,000 of their savings to kickstart the business, highlighting their commitment and dedication to building Victoria’s Kitchen from the ground up. The company strategically partners with distributors and retailers to expand its reach.
Although facing challenges in discontinuing a SKU, their products are available in around 800 stores nationwide, primarily targeting natural and specialty food stores. Key partners include retailers such as New Seasons, Andronico’s, Lunardi’s, and others. This deliberate focus on specific market segments aligns with the brand’s commitment to offering a unique and health-conscious product. Victoria’s Kitchen currently relies on natural and specialty food stores as its primary sales channel, selling at a price point of $1.10 per bottle with a 45% margin.
The company’s customer base includes individuals seeking natural and vegan beverage options, aligning with the health-conscious trends in the market. The available capital is likely tied to the founders’ initial investment and ongoing sales revenue. The company’s structure and internal organization are not explicitly outlined but are expected to involve roles such as sales, marketing, production, and distribution, typical for a growing beverage business. As the company continues to navigate the market, maintaining strategic partnerships and addressing customer feedback will likely be integral to its sustained success.
The Negotiations:
The negotiations in the Shark Tank for Victoria’s Kitchen Almond Water were marked by positive feedback on taste and packaging, but the Sharks expressed concerns about the product’s fit in larger markets like Whole Foods and the founders’ approach of listening too much to customer feedback. Lori Greiner and Mark Cuban opted out early, citing challenges in distribution and valuation concerns. Lori mentioned the difficulty of getting shelf space in grocery stores, especially against established competitors. Mark shared his experience with a previous beverage deal, cautioning against underestimating the challenges of gaining space in the crowded market.
Kevin O’Leary found the asking amount of $200,000 for 20% equity to be too high for the company’s needs, labeling it as “ridiculous.” He felt that the amount wouldn’t approach what the company truly required and decided to pass. Daymond John appreciated the founders’ drive and motivation but expressed concern that they listened too much to customer feedback at this early stage. He advised the founders to sometimes lead the market, telling customers what they want rather than always adapting to their preferences. Despite his encouragement, Daymond decided to step out. Barbara Corcoran commended the packaging but believed there was much work to be done to make the product more suitable for larger markets.
She expressed discomfort with the founders seemingly saying yes to every suggestion and decided to pass. Ultimately, Robert Herjavec offered an alternative perspective, stating that he appreciated the founders’ drive and willingness to listen. However, he believed that the $200,000 asking amount was too high and that he would have to spend too much time with the founders, deciding to opt out. In the end, despite not securing a deal, the founders, David and Deborah, left the Shark Tank encouraged by the positive feedback they received from all the Sharks, viewing the experience as an affirmation of their journey in building a business from scratch.
