'Shark Tank': Bleni Blends fall prey to Daniel's 'sharky' offer, signs two-investors deal with Lori
LOS ANGELES, CALIFORNIA: On March 31, Bleni Blends presented its smoothie vending machines on 'Shark Tank', where creators Peter and Stuart Shapiro landed a deal with two of the show's famous investors. Even though the brother duo scored big, at the end they had to pay big too.
Brothers Stuart and Peter were featured on Season 14, Episode 18 of ABC's 'Shark Tank' to provide a secure and automated solution for fresh smoothies in order to meet the demand for freshly-made smoothies in under 1 minute. Bleni Blends is an inventive beverage vending machine that creates nutrient-dense smoothies in under a minute. With such an intriguing product on exhibit, we were compelled to learn more about the business, and here is what we discovered! Stuart and Peter Shapiro, brothers, created Bleni Blends, a smoothie dispensing machine, in 2019. So, how did the brothers who were originally passed over by the Sharks wind up signing a two-shark contract?
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Bleni Blends promises steady growth
Bleni Blends has had tremendous market success since its debut in 2019. The turquoise vending devices prepare seven different types of smoothies on demand. The brother duo entered the tank seeking $250,000 for 6%. They are unique blends that are aseptically packaged and shelf-stable. It is packaged for them by producers. They refused to trade in frozen vegetables. Bleni Blends have licensed with exclusive rights in the USA with life on the pack.
They sell $8k a month of their highest flavored product. $5.25 on average costs them to buy the product, and the cost of the goods sold is $40. In 2020, they did $10k. In 2021, they did $275k and year to date they did $465k. They have financed their entire business, from machines to everything. Each machine costs $19,500k, then they sell it for $30k. They need the help of the Sharks to buy more machines. The person who holds the patent is overseeing the manufacturing right now. But the brothers have interjected a contract that at any point they can buy all the IP and the patent and bring manufacturing somewhere else, which is priced at $4 million. They want to keep the brand.
Bleni Blends give up way more than they were hoping for
Shark Kevin doesn't like the cap-ex on the machine, and that's why he doesn't want to invest. Shark Daymond likes the product for now, but the fact that the brand is currently sourcing its product from elsewhere, he feels they don't have the ultimate control. That's why he backs out, too. Shark Mark finds it risky to invest in the self-servicing food industry because of its inability to keep up with technology. Hence, he opts out too.
Shark Daniel throws in a 'Sharky' offer by asking 35% by going in a deal with Shark Lori. Lori says it will 'cost' them to have a deal like this. They ask the deal to be done at 15%, Daniel says he wouldn't even do it for 34%. The brothers ask if they can get a $500k line of credit along with it. Daniel agrees. The brothers sign the deal with the two!
'Shark Tank' Season 14 Episode 19 will air on ABC on Friday, April 7, at 8 pm ET. You can catch the latest episode the next day on demand, or Hulu. You can also watch old seasons and episodes on Amazon Prime Video and iTunes.
