‘Shark Tank’ founders struggled to impress — until one Shark saw a billion-dollar idea in their milk machine
'Shark Tank' investors leave no stone unturned to invest their hard-earned money in a business that strikes a chord with them. During an episode of 'Shark Tank' Season 12, Joe Savino and Ari Tolwin pitched Numilk, an innovative plant-based milk machine, in front of the esteemed Sharks Mark Cuban, Lori Greiner, Kevin O'Leary, Barbara Corcoran, and Daymond John. In the episode, Savino and Tolwin were seeking $1 million in exchange for 5% of their company. According to Food Republic, at the time of their pitch, Corcoran said, "You got our attention." Eventually, Savino and Tolwin got two offers, and they sealed the deal with Cuban.
During their pitch, Tolwin said, "Sharks, milk today means something totally different from what the milkman used to deliver to our homes. Some of us still drink cow's milk, most of us have switched to almond milk, oat milk, or even hemp milk, but Sharks, that comes at a price. Most of these milks are hyper-processed, filled with gums, preservatives, and fillers galore. Well, Sharks, that's where we come in. Move on over, cow's milk, because making fresh dairy-free milk just became utterly easy."
Soon after, Savino chimed in, "Introducing Numilk, we built a custom machine for grocery stores where shoppers can make delicious, nutritious, pure dairy-free milk at the push of a button. We use the best ingredients: organic almonds from Spain for our almond milk, a blend of organic cacao, vanilla bean, and maple for our chocolate milk, and a whole lot more. Our new milks are homemade without the mess or the fuss. We're on a mission to bring plant-based diets and zero-waste lifestyles to the world. So Sharks, I have just one question: who wants to milk this deal for all it's worth?"
Later on, the duo asked the Sharks to try out their plant-based milk. Then, Tolwin and Savino revealed that the refrigerated shelf life of the milk produced from the machine was 7 to 10 days. Along with this, they also stated that the customers pay $2 for a reusable bottle and $3.99 for a refill. When asked about the sales, Savino mentioned that the company made $40,000 in revenue in 2018 and by 2020, their sales crossed $400,000. Furthermore, they were expecting $6 million in 2020, but the Covid-19 pandemic disrupted their plans.
Without wasting any time, the Sharks cut to the chase, with Corcoran being the first one to back out, as she stated that she was confused by the pitch. John also followed in Corcoran's footsteps, and he dropped out for the same reason. Then, Greiner also refused to invest in Numilk, as she felt that the company wasn't investable for her. On the other hand, O'Leary made an offer of $1,000,000 as a loan at 9.5% interest for 5% equity.
Following that, Cuban entered the conversation and shared, "Guys, here's my offer. I'm going to give you 2 million dollars; one million of that is going to be for 7% equity, and the other million is going to be a loan at 3% interest, but I get an additional 3% of stock as advisory shares or straight-up equity, but if you don't use the loan, you don't have to give me the 3% equity for that loan. So, in total, if you use all the capital, it's 2 million for 10%." In the end, Tolwin and Savino accepted Cuban's offer and walked away with a great deal.