'Shark Tank' Season 13: Why did Pulp Pantry founder Kaitlin Mogentalle choose Mark Cuban over Lori Greiner?
Pulp Pantry founder, Kaitlin Mogentalle, had two sharks, Mark Cuban and Lori Greiner fighting for a stake at her company
Kaitlin Mogentalle of Los Angeles, California, pitched her snack food company Pulp Pantry on Season 13 of Shark Tank. She had quite a few sharks interested in her business, as well as sharks vying for a deal.
Pulp Pantry brings vegetables to the forefront of your pantry, through unexpected venues such as chips and more. Pulp Pantry's incredibly crunchy vegetable (grain-free) chips are manufactured using "recycled vegetable waste," which is the pulp left over after cold-pressing fruits and vegetables. Pulp Pantry chips claim to have "more fiber than kale chips and fewer carbs than potato and tortilla chips." The company works with big national juice companies to obtain pulp and transform it into a healthy, grain-free, and gluten-free snacking item.
Kaitlin appeared on 'Shark Tank' to raise half a million dollars for her company in exchange for a 10% stake. Kaitlin presented the distribution data to the sharks to persuade them that the enterprise is successful. She explained that one bag costs them $1.70, and they sell them wholesale for $3.24. The products are priced between $4.99 and $5.49. The company made just under $25,0000 in revenue last year and expects to make just under $50,0000 this year. The company is profitable with a net worth of $20,000. Retail accounts for 70% of sales, and the product is sold through around 600 doors. She also noted that third-party e-Commerce sites like Thrive Market and Imperfect Produce account for 20% of purchases.
Hearing these impressive figures Kevin O' Leary said it was brave of her to raise so much money given her sales numbers, but he offered $500k for a 25% ownership in the company. Lori Greiner, who seemed to appreciate the product, offered to contribute $500k in the form of a loan in exchange for 10% stock in the company. Mark Cuban who already has a sizable following in a similar product category, offered $500k in exchange for 20% stock.
Lori and Mark were two of the proposals that jumped out to Kaitlin. Lori went up against Mark for the deal, agreeing to match the equity she was offering but paying the money out as a loan. Mark then sought to establish his credibility by claiming that he has made earlier investments in similar products and thus knows how to grow the company. Lori then conveyed that she not only has experience (though not as much as Mark), but she is also passionate about the product. Not to be outdone, Mark countered Kaitlin's offer by lowering his equity demand to 17 percent, effectively sealing the deal for her and snatching the chips from Greiner.