Narrator: Tonight on "Shark Tank"...
Sharks, who doesn't love a cheesy love story?
If you draggin' a wagon,
I mean, if you really sluggin' back there, don't worry.
There's got to be a product that solves this problem.
I don't really understand the product.
What are the sales today? $8,000.
Why are you not making money? Let it go.
There are only a few moments that you get like this.
For 3%, you could lose this.
I think Emma's wonderful, but she's greedy.
I'll be greedy for you, too.
No one has had the courage to talk about on "Shark Tank"...
Oh, my goodness. Wait, wait, wait.
Wait. Oh.
♪♪
Narrator: First in the Tank is a modern product
made in traditional artisanal ways.
♪♪
Hi, Sharks. I'm Fred Zwar.
And I'm Kirsten Maitland, and we're from Austin, Texas.
We're seeking $750,000 in exchange for 5% of our company.
Herjavec: Wow. Sharks, who doesn't love a cheesy love story?
Boy falls in love.
Because girl is awesome.
But also, the boy's a romantic who loves to create
these impressive European-style picnics.
Which girl loves.
However, that meant the foundation of our relationship
relied on one very important thing.
Cheese! Cheese!
But then, uh-oh, the girl goes vegan.
Uh-oh again, boy goes vegan.
And with no truly premium
gourmet charcuterie-style cheeses on the market...
Boy and girl go into business together and create...
Rebel Cheese! Rebel Chees!
The artisan vegan cheese company
that is inviting vegans back to the picnic again.
We create real cheese but made only from plants.
And just like with love, there is no shortcut.
We spent years mastering the artisan cheesemaking techniques,
such as culturing and cave aging,
to create the most perfect textures and flavors
that will fool even the most committed cheese lover.
Imagine a creamy rinded Brie with a true rind,
a tangy sharp cheddar smoked with real mesquite chips.
And with over 20 different varieties of cheese,
we're here to revolutionize the vegan cheese game.
So, Sharks, who's ready to write their own cheesy love story
and take a bite out of the vegan cheese market with...
Rebel Cheese? Rebel Chees?
Herjavec: We got to try it. Grede: I am. I am.
Cuban: Yeah, I'm hungry and ready to try it.
And, Sharks, in front of you,
you have our five top-selling SKUs.
We have our Brie.
We have our Honee Pistachio Chèvre,
Sundried Tomato Fromage, sharp cheddar,
and also our pimento. Ooh!
Oh, my God, that's so good. The pimento is wow!
O'Leary: Is it primarily cashew,
or have you used multiple plant-based solutions?
We do multiple.
What sets us apart is our techniques.
So we actually have caves that we cave-age the Brie in.
Wow. The Brie is incredible.
Thank you, and it's just four ingredients.
O'Leary: Okay. It's cashews, water, salt, and culture.
So it's super clean.
Oh, my God.
That Sundried Tomato Fromage is fabulous.
Really good. O'Leary: I've tried them all.
And I'm a huge cheese guy. The cheddar is incredible.
I'm a huge wine guy. So I'm very sensitive.
The one you nailed it on is the Brie.
There is no way to tell the difference. Maitland: Thank you.
I mean, these are interesting, but the texture's, like,
pretty similar on all of them, right?
It's kind of very mushy and pasty.
The texture is throwing me a little bit.
Kirsten, are you the only one that makes a vegan cheese?
No. Greiner: No.
To this level. Standard.
There aren't many people
that are making artisan vegan cheese at scale.
There's no one making vegan Brie at scale.
We just built our new production facility.
We can make 8 million wheels a year there.
Wow. So, guys, you came in with a pretty punchy ask.
So explain to us the business model today.
Yes. So we have three different channels
that we're selling in currently.
We have our e-commerce, which is through subscription.
That entails about 16% of our business.
We also have our wholesale program,
which is about 17% of our business,
and then our restaurant, that is 65% of our business.
Oh, that's interesting. Herjavec: A single location?
Yes, a single location.
Cuban: What's the restaurant? Rebel Cheese.
So, during COVID, we had to pivot,
like every other restaurant in America.
We pivoted to e-commerce to start with,
and that started taking off.
And now we're in about 100 retailers.
Any of the large majors, like Whole Foods? Not yet.
They reached out to us in the beginning,
but we weren't ready for them.
Those 100 retailers -- Good for you for recognizing that.
O'Leary: What's the price of this
versus a traditional wheel of high-end Brie?
So it costs us about $4.67 to make that.
And that's after overhead and labor.
We then landed at the retailer for about $9,
and then we have an MSRP about $15 to $20 per wheel.
How does that compare with real cheese?
Real cheese is anywhere between $10 to $20.
So we're right there with them.
Fred, what are the sales today?
So our last year of sales were $2.5 million.
This year, we're projecting to make $3.5 million.
O'Leary: What will this whole thing make
if you hit the $3.5 million pretax this year
after you pay yourselves?
So we've been profitable for four years.
That's what also sets us apart.
What are you going to make this year? Wow.
This year we're hoping to break even, to be honest with you,
because scaling. Because of the factory.
Next year, we want to be in 500 stores,
which will put us about $7 million
just in our distribution revenue.
I'm trying to get my head around the deal,
because the differentiation for Rebel Cheese
is this extraordinary leap forward in Brie.
And yet you're asking -- $15 million valuation.
I think you asked for too much money.
If anybody here should invest in this, it's me.
But I'm out.
Alright, I'll offer you 750K for 10%.
Oh.
Greiner: Wait. What do you think?
Wait, wait.
Oh. Wait, wait, wait.
Narrator: One Shark is out.
Fred and Kirsten have an offer on the table from Mark
for their vegan cheese company, Rebel Cheese,
but Lori also seems interested.
Wait, wait, wait.
Oh. Wait, wait, wait.
I just have to jump in. She loves the cheese.
I have to jump in and say something. My God.
I did a deal with Boarderie.
We are surpassing, by Christmas,
$30 million in retail sales within one year.
We make the most fabulous cheese and charcuterie boards
that you can imagine.
And we have no vegan cheese.
I'm happy to go in with Mark if Mark wants to go in with me.
We can do that. I'm not your customer.
I'm not a big cheese guy, so I'm going to be out.
Thank you. We really appreciate it. Thank you so much.
Guys, I'll make this really nice and easy for you.
I'm going out.
To me, I don't really understand the product.
Yeah. I don't think it's as amazing as everybody's talking about.
I don't get it. Apparently Mark and Lori do.
750K, 10%. You get two of us.
Would you guys be willing to drop down to 6%?
No.
You're getting two of us. You get two of us.
A million for 10%?
[ Laughs ] Oh.
You get two of us. You get two of us.
You can't hire -- Costs more than that to hire us. Come on, you guys.
Yeah.
So another thing that we'd be looking for
is help with our distribution.
We'd be also looking for a spokesperson.
We'd be looking for somebody to help us with marketing.
Yeah, look, I'll even commit.
I'll go to a grocery store in Austin and hand out samples.
[ Laughs ] Okay.
That sounds awesome. Alright.
I already have Boarderie, where, boom,
we sell to millions of people,
and this would go right into our line like that.
What do you think?
Would you guys be willing to do 7.5%?
No. [ Laughter ]
Greiner: Don't lose this. Fred, let it go. Let it go.
Well, you know, for 3%, you could lose this.
2.5%, you could lose this.
Do you want to talk about it? Yeah.
Can we have a second to talk about it?
Greiner: Yeah. Sure.
Okay.
O'Leary: Guys, guys, before you leave,
let me just say something. in "Shark Tank" lore.
I've been around here so long.
I'm the vampire on the set, okay?
200-plus years here on "Shark Tank."
There are only a few moments in your life you get like this.
You made it on "Shark Tank." That's impossible to do.
You have an offer from two Sharks
who are passionate about your business
and give you enhanced distribution.
And you're worried about 2% or 3%.
You don't need to walk anywhere.
You'd be out of your you-know-what minds
not to take that deal.
And this isn't even my deal.
I'm just saying, this is your moment.
What the [bleep] are you doing?
[ Laughter ] Let's do it.
I almost never agree with him.
But what he said, for reals.
♪♪
Thank you. We'll accept the deal.
Yay! Yay!
You can thank me now, Mark.
Thanks so much. Oh, thank you.
Well done, man. Oh, my God.
So exciting. Thank you.
It's really exciting. Thank you so much.
Appreciate it. Yeah.
So good. Well done. Congratulations.
Whew! [ Chuckles ]
Very excited to work with Mark and Lori.
The part that really got me --
I don't know about Kirsten, per se --
is where Mark even said he'll come down to Austin
to hand out samples.
Yeah, we were like, "Done," after that. Yeah.
I think Mark one day will learn
you don't have to buy the company.
You can just buy the product. Just be a customer.
Just buy the cheese.
It's more fun when I get to say, "But it's mine."
Narrator: In Season 11, Sarah Paiji Yoo and Syed Naqvi
made a deal with Kevin O'Leary
for their eco-friendly cleaning product company, Blueland.
Done. Whoo!
Narrator: Let's see what they're up to now.
Paiji Yoo: Our mission at Blueland is to make it easy
for everyone to make more sustainable choices
with products that eliminate single-use plastic packaging.
We built the foundation of our online business on Shopify.
The platform made it really easy to upload a new image
and change the copy of the text,
and we could do all that with no engineers.
When our episode aired,
we got more traffic than we could have ever imagined,
and we did not have to worry about our site going down.
It continued running as beautifully as it ever had.
Naqvi: Before "Shark Tank," we were in business
for less than two months,
and our sales were around $200,000.
Since closing our deal four years ago,
we have done $170 million in sales.
We're now in Costco, Target, Erewhon,
and most recently we've launched nationwide into Whole Foods.
One of the best ways that we found
at attracting new customers at retail
is with our plastic swaps.
We invite people to bring in their cleaning products
and trade it for one of our products
that can be reused forever.
This is one of the things where Kevin has gone above and beyond.
He actually held on to all of his single-use plastic waste
and then decided to wear it
to show how much single-use plastic
a single person generates.
O'Leary: There's a whole generation of people
that don't want to throw plastic out anymore,
and Blueland solved the problem.
They have the best of both worlds.
They have direct-to-consumer business
that's huge and growing,
and retailers are begging for their product.
Blueland is now a brand.
Celebrating our five-year anniversary,
Shopify has invited us to show us
some of their newest and greatest features.
Shopify has been an incredible asset
to small businesses everywhere,
and we would not have been able to create a business of our size
at the speed that we were able to do
without a partner like Shopify.
Using the Shop app is such a great way
to connect with more customers for your business.
There's a new feature -- We add Shop Cash
right on the front page, so you can click here
and see exactly how much you have to spend.
We are a one-of-a-kind product,
and Shopify enables us to really customize the experience
so that our brand and our mission really shine through.
We each do have the power to go out and make it happen
and to make a difference.
Being a mother, I think it's especially meaningful
building this business.
My children were honestly the original inspiration
for wanting to create a cleaner planet.
We've already helped eliminate
over a billion single-use plastic cleaning bottles
from oceans and landfills,
and we're just getting started.
♪♪
Narrator: Next up is a backup for emergency situations.
♪♪
Hello, Sharks. My name is Ashlee Turner.
I'm from Compton, California,
and I am seeking $80,000 for 10% of my business.
Now, ladies, has Aunt Flo ever come unexpectedly
and left a total Picasso in your panties?
Oh. Or you could be out with your friends,
laughing, having a great time.
[ Laughs ] You tinkle a little.
And now you're forced to walk around with a leaky teaky.
[ Laughs ] Or it gets really hot outside
and it gets even hotter below.
Sharks, for these unexpected moments --
or as I would like to call them, panty plot twists --
allow me to introduce you to The Pocket Panty.
The Pocket Panty is a quick, discreet, and comfortable option
for whenever you're in a panty pinch.
The Pocket Panty comes individually wrapped
in its own package.
The Pocket Panty is no granny panty.
The Pocket Panty is comfortable, stylish, plus it's reusable.
Now, The Pocket Panty is a one size fits most.
But listen, sis, if you draggin' a wagon,
I mean, if you really sluggin' back there, don't worry.
I got you.
The Pocket Panty Plus is coming soon.
For women by women,
The Pocket Panty empowers all women
to view the occasional need for an emergency panty
as a part of life and not a source of stress or humiliation.
So there's literally no need to get your panties in a bunch,
'cause I got your booty covered.
So, Sharks, who's ready to pair up with The Pocket Panty?
In front of you, you can find your own pair of Pocket Panties
to check it out for yourself.
Great presentation. Yeah, great job.
Thank you. So cute.
Greiner: They're very nice.
They remind me of a very big brand.
It has the same feel. It has the same stretch.
It's very thin.
It probably doesn't show panty lines. Mm-hmm.
And so you're trying to find a generic that'll work for all
because this is an emergency item.
Correct. Did you do any type of research
to see how many people would be picking up something in a pinch?
Well, I did. I did my own research.
I literally, like -- And I don't want this to sound silly,
but I went to schools.
I gave out so many samples of panties, asked feedback --
"Try these on. Tell me what you think.
Do you need it?" And everyone says, "Oh, my God,
I would love to have this in my glove compartment."
What are your sales, Ashlee?
So I launched at the end of 2021.
In September 2021, I sold $8,000,
which recouped back my investment.
Dollars? Dollars? $8,000.
$8,000? So, Ashlee, before you get into all the details,
tell us about you. Yeah.
Turner: Sure. When I was in college,
I started working in a real-estate company,
got my license, and I became the closer.
So I would go out for other agents who had a tough deal.
I tend to be a little bit more relatable to people,
so it was easy for me to close.
So I would close my own deals,
and I would be closing all the agents in the office.
I would be closing 20 deals. Always be closing.
Always be closing -- ABC. Greiner: Yeah.
So I left and I went back to what I knew, which was sales,
but this one right here, this is my purpose.
How did we get to the panty? Grede: Exactly.
So what happened here is I went through a crummy breakup,
as most of these stories start.
I went and got this big dumb apartment in downtown,
and I was like, "How am I gonna pay for this?"
And then at that very moment, heard God say,
"The best ideas come out of necessity."
And I worked in property management,
so I would see the residents come down.
I'm talking to a girl.
She's like, "Oh, I met this guy on Bumble.
And, you know, last night
was the first night I decided to spend the night."
And I said, "Oh, really?" She starts laughing.
I said, "What are you laughing at?"
She goes, "I just stuffed some panties in my bag."
And I said, "Oh, girl, you're my customer.
You are my customer."
And that was it.
And what does one cost, and what does it cost you to make?
When I first launched, I was new, I was green,
and I was ordering in small quantities.
So I negotiated $2.20 for a pair.
I sell them for $10.
O'Leary: 10 bucks? And retail? What about wholesale?
Retail, wholesale, 5 bucks.
For the whole package? No, for one.
10 bucks for one?
Grede: Where do you make them? I make them in China.
And where are you selling right now?
I sell online. I'm in several boutiques.
I'm in all-girls private schools.
I'm in some vending machines. And it's great.
Like, the need is there.
Why don't I just go buy five pair
and stuff one, just like your friend did, in my purse?
Why "Shark Tank," Ashlee?
Well, so this is like a dream, like,
that I could have never imagined.
Full transparency, I'm a black woman,
and we don't get this many opportunities.
Since 2018, black women businesses have tripled,
yet we get 0.27% of venture capital dollars.
We don't get these opportunities.
So this is like --
Whatever the outcome is today,
I'm doing it for other women that look just like me
that just don't get this --
This is surreal.
Oh, good for you. You said you did $8,000.
That was in '21. So where are you now?
Paint the picture for us. That was in 2021.
My total sales are $60,000.
$60,000.
Ashlee, do you do anything on social media?
So...
Social media is just not my wheelhouse, so again --
Because you're a star.
You come up with all these great sayings, right?
Herjavec: Yeah. That is what would sell.
Grede: What do you mean it's not your wheelhouse? At your age.
Come on, now. You're a salesperson.
Greiner: Honestly, Ashlee, I just personally think
there are better people on this panel here
to help you with this product than myself.
I wish you good luck. I will purchase.
But unfortunately, I'm out.
Look, you are a powerhouse.
There's nothing about you
that doesn't instill confidence in me,
but the aura and the energy of Ashlee
doesn't match the sales.
And I'm trying to understand why.
Because I don't think there isn't anything you would do
not to get sales. Sure.
So I worry -- Except social media.
Herjavec: Well, maybe.
I'm trying.
For me... Uh-huh.
...it's a good product,
but I think the sales are telling me it's not selling,
'cause if anybody can sell it, you could.
Fair enough. But let me tell you.
Let me give you something else.
For me, I'm out. Fair.
But you got three other Sharks.
Ashlee, the hard part about this product
is the impulse buy, right,
being there when they need it,
unless you make them think about it in advance.
And that's the point of social media. Mm-hmm.
You giving the exact same pitch you gave us on TikTok,
on Instagram, and then saying, "Buy it at wherever,"
or, "Buy it on my website," that is what sells this product.
You are a great salesperson,
but the only place that that's going to come across
and allow you to sell your product is on social media.
And because that's the one spot that you won't go, I'm out.
O'Leary: I've been listening to your presentation.
This product's too expensive. Okay.
And I'm not a panty expert, but I know pricing. Sure.
I'm sorry, Ashlee. I'm out.
Okay.
Greiner: Well, you have one left. Herjavec: Emma's still in it.
Emma?
You know, Ashlee, I really like you.
You are an excellent saleswoman.
And the idea that you are just not tearing it up
on social media is almost maddening to me,
because it's like, if anyone can sell this product, it's you.
You are it.
You told us as you came out here why we all need this.
And I was like, "Oh, yeah, absolutely.
I want to go back to SKIMS now
and put a pair of panties in a pack and sell them."
And that is your big problem,
because any of the big underwear companies out there
can take what they do with all of their scale
and offer you this at what you want to pay for it,
which is $3.99, right?
That's what I really want to pay for this.
I think that's your big issue.
But I don't want to dissuade you,
because you will be successful.
But you've got to actually take this
and go one step further.
For me right now, this is -- No, Emma, no, no, no.
No, no, no, it's not an investable opportunity
for me right now.
But that doesn't mean to say that you can't get it there.
You've got some more work to do. Sure.
You've got to convince every woman in this country
that she actually needs to go out and order this
and keep three pairs just for safekeeping.
Once you've done that, you'll be off to the races.
Does it -- But for those reasons, I'm out.
We wish you good luck. Best of luck, Ashlee.
Grede: Best of luck. Thank you guys so much.
Cuban: Good luck, Ashlee. Congrats. This is, like, beyond anything
I could have ever imagined for myself. You're amazing.
You really are. Thank you guys.
Thank you. Good luck.
Although I'm walking out without a deal,
I got excellent advice from the Sharks.
And this is just the beginning.
I'm going to take the Sharks' feedback.
And what's next is to get on social media.
Wow. I don't want to go on social media,
but I guess that's what's next.
This is your standard dead bolt.
While it may feel secure when you lock it,
an experienced intruder can get in in about five kicks.
Alex, show them how easy this is.
Come on, Alex, kick it hard.
[ Chuckles ]
They tried to kick down the non-HAVEN locked door.
And they tried.
Cuban: Alex, Alex! Come on, Alex, kick it.
[ Grunts ] How much you sell the dead locks for?
[ Laughter ]
The sweat's pouring down his face.
[ Laughter ]
Oh! Oh!
There you go.
He's getting mad now.
[ Laughter ]
[ Cheering ]
He finally got it.
That's right, baby!
♪♪
Narrator: Next into the Tank is a way to safely travel
with precious cargo.
♪♪
Hi, Sharks. My name is Ryan Neergaard.
And this is my business partner, Ron Scharman,
and we're from Napa, California.
Hey, Sharks, we're here seeking $500,000
for an 8% stake in our company.
Wow.
Ron, you can go anywhere in the world on vacation,
where do you go? That's easy, Ryan.
Even though I live in beautiful Napa Valley,
I would vacation in a place filled with vineyards
as far as the eye can see,
where they make some of the world's greatest wines.
That place is Bordeaux, France.
That's amazing.
And I bet you like to bring home
some of those expensive wines when you go, don't you?
Absolutely, Ryan.
But, you know, Sharks, it's not easy
transporting my wine babies back home.
Hey, Ryan, what do most people do when they travel with wine?
Most people have very expensive
and very limited options when they travel with wine.
A lot of people even wrap their wine in dirty underwear
when they fly.
Then we all go to the airport
and have the same fear of this happening.
♪♪
No! There goes your wine babies.
There's got to be a better way.
And there is.
The solution is FlyWithWine and the VinGardeValise.
The VinGardeValise is a wine suitcase
that allows you to check your wine right on the airplane.
It comes in three colors and three sizes --
12-bottle, 8-bottle, and 5-bottle.
But wait, Sharks. There's more.
Meet the VinXplorer wine and beverage backpack.
It comes with a 1.5-liter bladder and spout
so you can take your favorite beverages on the go
wherever you go.
It's a party on your back.
And our products are made by wine lovers for wine lovers.
But you don't have to be a wine aficionado
to enjoy our products.
Both the inserts and the bladders can be easily removed
so that our products can be used as everyday luggage, too.
So, alright, Sharks, who's ready to help us... Ship...
And sip our way to "grape" returns with FlyWithWine?
Greiner: Oh, good job. Cuban: Oh, my God, that's good.
Herjavec: That was a great pitch!
That's funny as hell. Hey!
So we have a few things for you guys to check out in front of you.
Primarily want to bring attention
to our flagship product, the VinGardeValise,
which is the suitcase next to you on your right.
So the VinGardeValise, what you're looking at
is the Piccolo, which is a five-bottle unit carrier.
Gotcha. When you open that up, you have the inserts,
and all of the inserts can come out. Oh, I see.
So you can also use it as a normal suitcase.
Greiner: That's really genius. Oh, so this whole thing comes out.
The suitcase will get you to Hawaii,
and the backpack will get you to the beach.
[ Laughs ] Gotcha. Okay.
Oh. Each one of you, we've prepared a special drink...
Oh, there's something in it. ...because we heard that there's a drink you might like to enjoy,
and you're going to just put both fingers on both sides
and push just like this.
O'Leary: Oh, check it out.
Grede: Oh, I've got a glass of rosé.
Cabernet Sauvignon. From Napa, California.
Espresso martini. Greiner: Wow!
Lori, cheers. Cheers, darling.
Oh, my God. Yes, Kevin. I'm really impressed. Oh, my God.
We all have to stand up and do a tradition. Cheers.
One, two, three.
Together: Chevaliers du Tastevin!
Greiner: Thank you very much.
Scharman: And that's why it's a party on the back. Ahhh!
Y Chihuahua, caramba. That's good. Ahhhh!
Ryan, you know, after 15 years,
what people have learned is,
if you give the Sharks some alcohol, the pitch goes better.
Mama didn't raise no fool.
[ Laughter ]
Listen, wine dudes, we have a question here.
Very important -- $500,000, 8%.
That's $6.25 million valuation. Right.
Why is this luggage company/ wine boozery
worth $6 million-plus?
Well, that's a great question. I think it is.
And the answer is that we've done $19 million to date...
Greiner: What?! Ooh! ...selling our product.
And 50,000 travelers have bought the suitcases,
traveling hundreds of thousands of miles. Herjavec: Are you kidding?
We started at the end of 2016.
So tell us about the last 12 months.
Yeah, tell us year to date. Well, last year, we did $5.6 million.
and we were about -$47 million.
This year year to date?
Year to date, we're doing $2.3 million.
And we're -- so far, and we've lost around $100,000.
Is it all advertising money?
Yeah, we spent a lot of money on advertising.
Last year, we spent about $400,000 on $5.6 million.
You've done amazing.
You've done millions and millions of dollars. Yes. Yes.
Why are you not making money? That's a good question.
Well, it's a great question.
We continually reinvested in our business hiring good people.
We take salaries. Yeah.
We have good benefits.
And we we plow our money back into the company.
What are your salaries? What are your salaries?
Salaries are $150,000 each.
So, where's the money going, right?
So there's only a couple places
you can spend that much revenue, right?
Yeah, there's something called COVID that happened.
So last year, we had -- Alright, fair enough.
You know, we had a lot of non-recurring expenses
that we're not going to have this year.
Year to date, the first four months, we lost $100,000
because we went to about 13 trade shows around the U.S.
It's very heavy expense side.
So, I mean, the marketing that we spend
is really on building and expanding our business.
We have a philosophy which is important
about trying to use one pool of inventory for multiple channels.
So how much do you have in inventory?
1,500,000 right now.
Ron, tell me, how did you come up with this?
I'm really curious to understand
the origin story a little bit more.
It was 2015.
I went on a trip to Burgundy with my wife,
went to some great wineries,
and every place we went, we said,
"We want to ship the wine home."
They said, "Well, you can take the wine physically yourself
and bring it to Mail Box Etc in Beaune,
a little village in Burgundy."
And so ultimately that's what we did.
We shipped it back home. It took 45 days.
Wow. Who knows what happened to the quality of the wine?
But I decided, there's got to be a product out there somewhere
that solves this problem.
And so I researched it, and I found a guy in New Mexico
who'd come up with the idea of version one of the suitcase.
And so I was able to negotiate, eventually, a deal with him
for exclusivity in the wine industry.
And so at that point, I reached out to Ryan,
who used to work for me at a prior company.
And we started the company. So, Ron, you're licensing this idea from someone else.
This is not actually your product and your idea.
Well, it's our product.
So, we have an investor who's our manufacturer, our importer
and manages our supply chain.
She bought out the original inventor, all the IP,
all the assets, and everything.
She then invested in our company,
owns 20% of our company, so it's a strategic investment.
There's no other financial relationship with her,
just straight 20%? Just 20%.
She doesn't allow anybody else to use the patent
or to make this product?
We have exclusivity worldwide.
Does your company own the patent,
or does she own the patent?
She owns the patent on the suitcase.
We jointly applied this year for the patent on the backpack.
How long is the agreement in place for?
10 years.
What happens at the end?
There's an evergreen thing that allows us to renew,
I mean, at that point in time.
What does it cost you to make, and what do you sell it for?
What a great question.
The Grande 12-bottle is $379.95.
The eight-bottle is $339.95.
And the five-bottle Piccolo is $289.95.
It's reasonable. And the margins are 60% to 62%.
The backpack retails for $199.95.
Ooh. It has a 71% margin on it.
About 400 to 500 wineries
carry it in their tasting room or have bought it.
But, you know, the last 12 months,
we did $3.4 million on Amazon.
Just on Amazon? Wow.
We sell about -- You know, on our own website,
we do about 13%, 14%, as well.
And then wholesale's about --
this year will be probably 40% of our business.
Look, guys, I just think it's a hard business to scale
to the level of profitability
that makes it work for me as an investor.
So for those reasons, I'm out. Alright.
Hey, Ron, just so I'm clear,
you can only buy the product from her.
Only she can manufacture it.
Yes, only she can manufacture certain products.
If we come out with a new product -- No, I got it.
But your number-one product, the suitcase,
you can only buy from her. Yeah, she manufactures.
In my world, in tech world, I would call you an integrator
or a VAR, value-added reseller.
There's nothing wrong with that.
The problem is, as an investor,
I don't think you're going to scale to the point
where I'm going to make my money back.
So somebody would have to sell the business,
and it goes back to the problem --
You actually aren't aligned with the people that own your IP.
As long as she's making the stuff
and you guys are holding inventory, she's making money.
You only make it on the sell-through.
Great business for you guys. Keep going.
And I appreciate the drink, but as an investment, I'm out.
Appreciate the comments.
To me, there does feel like there's real disalignment
between you and your primary investor.
What you should have done is tried to reduce the complexity
before coming in here and talking to us. Mm-hmm.
So for that reason, I'm out. But I wish you the best of luck.
Okay. Thank you.
You've had such magnificent sales.
You've done such great traction. I see the need for it.
But there's something going on
as to why you're not actually making more money
to the bottom line, more profitable.
And that concerns me.
And so I'm so sorry, but I'm out.
Thank you. Thank you.
So, guys, let me explain why this is a difficult deal
from a different perspective.
In nature, very successful parasites
never kill their host.
Your manufacturer is a parasite, and you're the host.
And she controls how much money you make every year.
What you could be doing and what I would be doing
is be looking for a different price point on these
and probably find a way to save 15%, 20%.
But I can't because the IP is tied to the manufacturing,
and I understand the symbiotic parasitic relationship,
but it's going to make it impossible
to get an investor for $500,000.
You know, that's a lot of dough. Right.
And I'd like to -- I got to make back $5 million.
I mean, after all, I'm an investor and I don't --
There's no way to get it back.
You'd have to sell the company for 150 million bucks.
Well, you could make it as part of a royalty deal, as well.
You get your money back earlier.
Yeah, I thought about that, believe me.
[ Laughs ]
I don't like being beholden to a parasite.
I'm the parasite.
[ Laughter ] Herjavec: Oh.
That's true. Truer words have never been spoken.
Ever, ever, ever, ever. Ever on "Shark Tank."
Guys, thank you very much. I'm out.
Okay. Thank you, though, guys.
Thank you guys. Congrats, guys.
Good luck with everything. It was a great presentation.
Good luck, both of you. Scharman: Thank you.
Neergaard: You want to walk out of here with a deal,
but at the end of the day, they made some really good points
that we're going to be able to go back, adjust our company.
We're gonna apply this and we're gonna be stronger than ever.
So we're not deterred in any way, shape, or form.
♪♪
Narrator: Next up is a solution
for a persistent problem for women.
♪♪
Hi, Sharks. I'm Taylor.
And I'm Casey.
And we're here today to talk to you
about something very serious.
Something women are suffering in silence over.
Something no one has had the courage
to talk about on "Shark Tank" until now.
We're talking about NFO.
Both: Nipple freak-out!
[ Laughter ]
Sharks, when those headlights turn on,
sometimes it's impossible to turn them off.
At the gym, going for a swim.
In the freezer aisle.
Guys, a little background.
Most sports bras and swimsuits
come with foam pads to prevent NFO,
but one round in the washing machine,
and those babies are toast and impossible to get back in.
This left us with two options -- use adhesive nipple covers
that irritated our skin and collected lint and dust.
Or wear an actual bra.
But not every outfit calls for one,
nor does every woman want to wear one.
Well, now there's no need to freak out.
Say hello to CAKES Body.
CAKES are reusable, washable silicone nipple covers
that adhere naturally to your body heat just like this.
Greiner: Wow. We don't use any irritating adhesives,
so CAKES are gentle on your skin
and don't rip your nipples off at the end of the night.
With our signature patent-pending design,
CAKES are seamless, plus you can use them till you lose them.
Simply rinse, reuse, and wear again and again.
And NFO is just the tip of the iceberg. Ha-ha.
That's why we're seeking $300,000 for 5% equity.
-Wow. -Hello. -Hello, girls.
So, Sharks, who wants to make every day a no-bra day?
Sharks, in front of you, you have CAKES
in our three signature sizes -- OG, Plus, and Itty Bitty.
But first, Mr. Wonderful, come on up here.
We want to show you how to use them.
Absolutely. Grede: Thank God it's you.
Cuban: Go ahead, Kevin. Grede: Thank God it's you.
I'm your man. Greiner: Yes!
Grede: Oh, come on. You come right here.
So, Mr. Wonderful, you have a beautiful head.
Thank you. I'm sure you get that a lot.
Well, it's the Dome of Desire.
First of all, do you mind if we put a CAKE on your head?
No problem. Okay. Thank you.
Everyone said you're such a good sport, so...
Ta-da!
Greiner: Won't fall off? O'Leary: Cools the dome.
Greiner: It cools?
We do you recommend CAKES under snug-fitting tops,
like a bodysuit or a bralette?
Yeah, just in case.
Herjavec: Right. Yeah, and they're grippy, not sticky.
And as you sweat and produce body heat,
they actually grip even better.
Thank you so much for being such a good sport. Thank you, thank you.
They don't call you Mr. Wonderful for nothing.
Who knew? Herjavec: They do, actually.
There's no reason.
Greiner: Well, it's really interesting to me.
I mean, I put on my arm. It is comfortable.
It's light. I barely feel it.
I have to also ask. Awesome.
I want to know about you and your backgrounds.
And are you twins?
Yes. We are.
We started our business very simply.
We were like, "We need this solution.
Let's see if anyone else will buy it."
So we both were working in corporate
for the last 10 years.
Things were going great.
And I don't know if this was a sign from the universe or what,
but we were both on the verge of a layoff at the same time.
Greiner and Grede: Wow. And that was really when we were like,
"Do we want to look for another job?" The nipple came to the rescue.
Nipple covers. Nipple covers.
That's it. Nipple freak-out.
Who knew it was a big problem?
Grede: But, guys, there's so much competition.
I really want to know what makes yours better.
This is a saturated market. Better than what?
Well, there's everything, right?
There's tape. There's silicone patches.
There's Band-Aid-type situations.
Herjavec: Wow. But what makes this unique?
It's crazy. When we first started,
there was no one necessarily owning,
like, the boob accessory and solution space.
There's a boob accessory space?
There's a boob solution space. I'm in it.
When we first started, we designed the solution
that didn't exist for us.
In our case, we wanted something extremely seamless
that didn't poke through our clothes.
Typically, what we were finding on the market
was a lot smaller and thicker.
So ours is thick in the center,
but it tapers to almost nothing at the edges.
So you get a seam-free situation. Yeah.
Oh, well, that's a good point. Well, you guys came in with a $6 million valuation, right?
So you must have sales. Tell us about the business.
We started with only $10,000 from our savings,
zero dollars in marketing our first year, no investors,
and in our first year of business,
we did $1 million in revenue.
Together: Wow!
Year to date, in the last five months... Wow.
...we've done $1.5 million
and are projecting to end the year at $5 million.
Wow. Wow!
Good for you two. That's insane.
So you must be profitable, then, too, right?
We are operating at a 35% net profit margin.
So last year, we did about 300K in net profit.
And this year, we've done over 500K.
Good for you two. You're amazing. Both: Wow.
Tell us how you're selling, then, yeah. Where are you selling it?
Last year, 90% of our revenue came from organic TikTok
at a zero-dollar customer acquisition cost. Good for you.
Wow. Yeah, that is awesome.
Herjavec: That's incredible. That's amazing.
Guys, let me ask you a tougher question.
What happens if TikTok gets shut down or diminished?
Our focus for the first half of this year was,
how do we diversify where revenue? Smart.
We were able to take our winners from TikTok,
put them on paid channels,
and they're extremely efficient, doing much better.
What's the return?
Our ROAS on paid ads is over a 5X.
Grede: Wow. Herjavec: 5X?
O'Leary: 5X? Amazing.
So, Taylor, what's the cost of the product?
Yeah, what is the cost, and what do you sell them for?
Our costs landed are $8, and we sell them for $30.
So we're at a 75-ish percent. Yeah, good for you.
Nice. I want to know, why do you need a Shark?
We feel like we're just at the beginning.
We've been able to get it to this point,
but we're smart enough to know that we need the expertise
of taking this from a single-product company
to an actual brand with lasting power and staying power.
And truly solving problems that women are facing.
We started with $10,000.
We weren't able to launch a whole line,
and also, we wouldn't have known --
You're lucky. That saved you.
Let me give you some advice. Oh. Thank you.
What I would suggest -- talk to your customers,
'cause that's what you do best,
and let them tell you what they're going to buy
and what they're going to order.
You have to always know what business you're in
and what you're great at,
and you're great at marketing on social. Thank you. Thank you.
And so you've got to play that.
Unfortunately -- So many things I could say.
[ Laughter ]
But unfortunately, it's not really my wheelhouse.
So for those reasons, I'm out.
Thank you. We love what you do. Thank you.
Thank you so much. And thank you.
Cuban: Thank you.
What I love about "Shark Tank"
is you learn about stuff you didn't even know.
NFO, who knew? Who knew?
Boob accessory market, who knew?
Cuban: Who knew?
Right, I like to think I know a little bit about everything,
but I may have hit an industry I know nothing about.
Not for me. I'm out. Thank you.
Thank you so much. We look up to you so much.
So thank you. Thank you. Amazing.
Ladies, I actually think you're more
than just really good marketeers.
I think that you are really early in this business,
and I've seen so many businesses
where you get that early groundswell, you know,
and it's like TikTok's on fire.
But it isn't a business until you've figured out,
how many ways can you find that customer?
Yeah. And right now you're going through one channel.
There's a huge opportunity for this in wholesale
and more traditional retail
if you choose to go down that way,
and I think there's a ton more products you can do.
So with all of that being said,
I'm actually going to give you guys an offer.
Herjavec: Ooh.
Narrator: Two Sharks are out, and Emma is interested
in Casey and Taylor's nipple solution business, CAKES Body.
Grede: You came in asking for $300,000 for 5%,
and I'll happily give you $300,000,
but I want 12.5% of the business.
First of all, we can't thank you enough for the offer.
You're a queen, our icon. Lori, also the QVC queen.
Wait a second. What am I, chopped liver over here?
Mr. Wonderful, the best sport. Basically.
You're a queen, too, Kevin.
O'Leary: Well, look, I may have an offer, too,
same time adding a little boost. You got a great offer, guys.
You have a really good offer.
Wait a second. Let me put an offer out there
that doesn't cost you as much, because I find her very greedy.
Okay? 12.5% is very selfish of her.
What's my name? Mrs. Grede. Right? Exactly.
So I will offer you the $300,000 at the 5%.
But if I ever saw a product
that could handle a royalty, it's this.
So I would like a dollar per set
until I get back a million bucks.
That's just over 3X on my investment,
and I'll keep the 5% equity to just,
you know, help you build it.
We'll sell it one day to a behemoth.
I think Emma's -- she's wonderful, but she's greedy.
I'll be greedy for you, too. It's disgusting.
12.5% equity. It's ridiculous.
Here's the thing.
I have built businesses in this space
to be worth billions and billions of dollars.
You want to build a giant business,
and I can actually help you do that.
Not because I'm talking about it, because I'm doing it... Well -- Excuse me.
So what are you waiting on, guys?
...over and over and over again in this space.
Mr. Wonderful, thank you so much.
Those are two very interesting offers.
Where do you see, from a partnership -- Oh, my goodness.
Oh, my gosh. Casey, he knows nothing. Oh, my goodness.
You're actually asking him questions? It's a valid question.
When you have Emma Grede right here,
who's done this multiple times. Excuse me, Mark.
May I answer?
This is early, to Emma's point.
And so we want to make sure it's worth your time.
I would love to be able to just put the money
back into the business as much as we can
to grow it as much as we can,
so the royalty component wouldn't work for us.
Why are you still talking to him, seriously?
No, I'll give you $300,000. You want to do a deal with him?
Seriously, why are you still talking to him?
Guys, what are you waiting for?
This is our baby.
Obviously we want to keep as much equity as we can.
As you should. Would you be willing to do 300K for 8%?
No.
I'll do 300K for 10%, final offer.
♪♪
Okay. Done. Whoo!
Herjavec: Wow! You've got a deal.
Well done, girls. You killed it.
Grede: I love it. I cannot wait. Thank you so much.
This is going to be so good. You're a queen.
Herjavec: You guys are amazing. Good luck, guys.
Yay! Thank you so much!
Okay, bye. Bye.
Oh, my God. I can't digest that.
What the [bleep] just happened?
Sarai: Emma is setting the trends in the industry.
And I think our company is a perfect complement
to some of the other things she's working on,
and she is going to help us blow this out of the water.
I didn't think that plane was going to land for a while.
I knew it was.
If there was anybody who was ever a perfect fit
for a business, you're the perfect -- Greiner: You were the perfect partner.
I feel like I'm fitting perfectly. Yeah.
I'm a boob solution queen. Yeah.
What's incredible, though, is Kevin thinks
he's the perfect fit for every business.
That's right. I am.
-- Captions by VITAC --
♪♪