‘Shark Tank’ contestant battled an eating disorder for years — then created a gluten-free snack now worth $3M
Landing a deal on 'Shark Tank' is a dream of many entrepreneurs. However, not all success stories begin on the 'Tank.' Some stories begin with quiet struggle and countless trials and errors before exploding in a way no one saw coming. That’s what happened when Oat Haus founders Eric Katz, Ali Bonar, and Ari Schraer appeared on the Tank in Season 13. The product, branded as Granola Butter, is a nut-free, gluten-free option that can be used as a toast spread on yogurt or any bread. It comprised healthy ingredients such as maple syrup, olive oil, some spices, and oat flax, as the trio described during their pitch.
When the Sharks sampled the butter, which was presented in flavors including vanilla, chocolate cookie, peanut butter, and blueberry, Lori Greiner didn't hold back from praising the founders about the smell of the butter, which she said reminded her of “caramelized granola.” Barbara Corcoran also noted that it felt like Peanut butter, and she liked it. While most of the Sharks liked the product, Kevin O'Leary wasn't sold. He criticized its runny texture and made it clear it wasn't for him.
However, intrigued by the chemistry of the founders, Shark Daniel Lubetzky asked about their relationship and how the product came to be. To which Bonar replied that while she and Katz were in an 8-year-long relationship at the time, Schraer was her childhood friend. Revealing their journeys to being a founder, Bonar told the Sharks, "Granola Butter came out of my eating disorder recovery." She explained, "I struggled with food in my body for over a decade, particularly anorexia, binge eating, and orthorexia." Battling the disorders made her obsessive about eating healthy and clean all the time.
But when she was in the lowest moments in her life, she took the help of a therapist who guided her on a journey of "Self-love and food freedom." Since then, Bonar started documenting her journey on Instagram as a beacon of hope for many battling the same disorder. She then revealed that Granola butter came as a result of her craving for peanut butter and almond butter—something she couldn’t have due to her allergies. Determined to find an alternative, she began experimenting in her kitchen, perfecting her recipe, and that was the time she introduced Schraer, who is a chef, into the picture, who perfected the Granola butter and made it ready to launch.
View this post on Instagram
When asked about the sales breakdown, they revealed $2.7 million in lifetime sales. Despite the numbers, the sharks didn't seem interested. For Cuban, the product didn't stand out. For Corcoran and Greiner, the deal was also off the table. Lubetzky also told the founders that while he liked the product and he would recommend it to others, he did not resonate with the founders' sharing of the idea of bringing experienced investors with strong "exit" histories—something Bonar had mentioned during her pitch.
Despite bagging no deal from the Sharks, the company has solidified its status in the market by expanding into more products, such as banana breads and rice cakes, now available on their Oat Haus website. Recently, the company has also relocated to a larger facility in Cleveland to effectively manage its production needs, as reported by Shark Tank Recap. The outlet also reported that the brand has been found stepping into retail stores, including Target, Whole Foods, Amazon, and more. It generates an annual revenue of a whopping $3 million, setting new standards for success.