Nuts n More before Shark Tank
Nuts n More is a healthy brand of peanut butter designed by three friends from Rhode Island named Neil, Peter, and Dennis. They saw the potential market for the product in the growing health market and started making the product in Peter’s bakery shop. They immediately gained attraction from multiple celebrities and retailers who also loved this niche idea. Nuts n More managed to get distribution in less than a year since starting the company and their attraction also caught interest from other retailers as well. However, they did not have the capital to fund the purchase orders so they wanted an investor who could help them fund these orders along with the growth. They applied to be on Shark Tank and were invited for season four.
Nuts n More on Shark Tank
Neil, Peter, and Dennis entered the tank seeking $250,000 for 20% of the company. Dennis began the pitch by selling the Sharks on the health benefits of their peanut butter such as being high in protein and fiber yet having no sugars. Peter gave the tale of how quickly the company got attention after its birth from stores and how they wanted to expand their growth. As Peter handed out samples to the Sharks, Neil gave a breakdown of the different flavors they currently had such as chocolate peanut butter and almond butter.
Robert wanted more detail on the nutritional information. Dennis told Robert that their peanut butter had double the protein of regular peanut butter and also had flax which provides added fiber. Daymond brought up their valuation of $1,250,000, feeling it would be hard to justify as they had only been open a year. Neil revealed they had $100,000 in sales in five months and their valuation was based off of the country’s largest distributor approaching them with interest in the product, but they could not fulfill orders due to lack of capital. Daymond was now interested in the numbers and Neil mentioned they sell their products for $10.99-$12.99 and it costs them $2.90-$4.00. They wanted to use some of the money to lower their costs.
Unlike the other Sharks, Mark had more interest in their experience with the retailers they were in. Neil told him that they were in thirty-two retail stores, all of whom were reordering every week. However, the other Sharks brought back the concern of valuation. Dennis tried to defend it by mentioning they have a great brand, but that did not fit well because of their recent entrance in the market. Daymond couldn’t get past their valuation as he felt they were basing it off of assumptions and because of that he went out. Barbara was very impressed with Nuts n More’s packaging and branding, but was also upset by the amount of money they asked for. Barbara said she would need 80% of the company to make a deal, but knew they would not take that so she went out as well.
Kevin was wondering why they couldn’t get funding from other sources because industries provide cash to fulfill purchase orders, but Neil just mentioned it was due to fulfillment. Mark wanted the wholesale numbers to see if these issues were true and Neil mentioned they wholesale for $5.75-$7.25. This assured Mark that they did not have high enough cash coming back from their current sales to fulfill other orders. Kevin, however, couldn’t get past the valuation as well and went out.
Mark wanted to know how much money they needed to get the highest margins. Although they did not have an exact dollar amount, Robert gave them an example with $50,000 and they agreed that $50,000 should be enough to lower their costs. Hearing this, Mark offered the $250,000 for 35%, but $75,000 would be up-front, while the balance would be given in the future when they need to fund purchase orders. Robert felt the valuation was too high and asked for 50% for $250.000. Mark asked Neil, Peter, and Dennis to step outside to discuss both offers while he and Robert would discuss it as well.
After walking out, Neil immediately mentioned they should not give up 50%, but that he liked Mark’s offer. Meanwhile, Mark tried to convince Robert that asking for 50% would cause problems in the long-run, but Robert argued that starting off at 35% would lead them to lower counter offers. Neil and his friends came back in and told Robert that they agreed 50% was too high. They did, however, like Mark’s offer so they countered him and Robert with 30% with Mark’s contingencies. Mark originally seemed open to this, but Robert did not want to take that deal. However, he said he would do the deal at Mark’s original offer of 35%. After a couple seconds of thought, Neil and his friends agreed to the deal with Robert and Mark. As they happily left, Daymond mentioned he loved that they were willing to take less money upfront to get great partners. Kevin felt Robert and Mark gave them an insane valuation, but Robert and Mark saw the potential with the company.
Nuts n More Now in 2018 – Recent News & Updates
After the show, the Shark Tank effect helped Nuts n More skyrocket in sales as they reached $1,000,000 only seven months after airing. Thousands of stores started carrying their product including Whole Foods and GNC. Nuts n More is now the number one selling health food product at GNC as they have rolled the product out to over four thousand of their stores across the country. This occurred after a meeting with the CEO of the store that Mark was a part of. Two years after airing, Nuts n More reached six million in sales and is expecting twenty million with their heavy increase in distribution.
Along with exposure in Shark Tank, Nuts n More recently got on QVC where Mark Cuban and Dennis provided the background of how successful the product has become since airing on Shark Tank. This was Mark’s first appearance on QVC. They were able to sell out of their product in only a couple of minutes. Of the flavors on QVC, one was their best seller, Toffee Crunch, which is also one of the many added flavors to their peanut butter line. They have expanded their products into high protein spreads and have opened a store in Rhode Island which they hope to franchise.
Nuts n More’s pitch teaches future entrepreneurs that one should go into the Tank with a fair valuation and a reasonable ask. Many entrepreneurs make the mistake of asking for too much money to the point that the Sharks cannot make an offer even if they like the product because they must give the full amount asked for. It was very hard for any of the Sharks to come to a fair valuation of the company at the time, but luckily Mark was able create a unique deal that made it possible to close. This helped lead to the long-term success that the company has experienced as it continues to expand in sales.
Where can I buy this product?
If you want to get the best price on Nuts N More click this link to automatically apply the discounted rates on Amazon.com . They have a large variety including the toffee crunch, peanut butter, white chocolate, pumpkin spice, cinnamon raisin, chocolate and more!
What are the reviews of the product?
Most buyers review the product positively, stating they enjoy the products added benefits in compassion to other peanut butter. Some reviewers do mention that they do not like the taste, but this comes down to preference and may be different if one is a commonly healthy eater.