Nui Cookies Before Shark Tank
Everyone loves cookies because they are ready-to-eat snacks that taste great. Unfortunately, cookies are packed with so much sugar that it’s almost impossible to stay fit while eating them. Kristoffer Quiaot and Victor Macias were first-hand witnesses of this.
At some point in their lives, Kristoffer and Victor reduced the amount of sugar they were eating and the results were fantastic for them. Kristoffer reduced his naps and Victor lost more than 40 pounds thanks to them cutting out sugar from their diet. The pair thought that their progress was going on very well but they soon had to face their sugar cravings.
Almost every meal that tasted great was filled with sugar including their favorite snack of all: cookies. Victor and Kristoffer had no way to eat healthily and still find tasty meals so the pair decided to find a way to enjoy their favorite treat and still stay healthy. They worked together to develop tasty cookies that were low in calories and called them Nui Cookies. Nui Cookies are made with natural sweeteners so very little sugar was needed.
Victor and Kristoffer then started the Nui Cookies Company which sold healthy cookies that had only one gram of sugar but still tasted great making for an amazing eating experience. Victor and Kristoffer launched the product successfully but were not prepared for the quantity of demand they would get and so were occasionally out of stock. They soon needed more capital to expand the business to meet demand. They also wanted to reduce production costs to increase profit and this could only be done through large-scale production.
A partnership with an investor on Shark Tank offered this and more so they applied to be on the show. Their application went through and they were invited to be on the 6th episode of the 10th season. This episode featured Alex Rodriguez as a guest shark.
Nui Cookies on Shark Tank
Kristoffer Quiaoit and Victor Macias sought $300,000 and offered 10% of their company when they went onto the show. This gave Nui Cookies a valuation of $3,000,000. They started their presentation by telling the sharks the problems they and other people had experienced as they tried to get healthier and the solutions that Nui Cookies provided. They then gave each shark some cookies to taste.
Kevin immediately wanted to know how many carbohydrates there were in the cookies and he was told that there were 2 grams of carbohydrates in every cookie. Kevin didn’t like the taste and he told Victor and Kristoffer so. Kristoffer then told him that they used natural sweeteners in the cookies.
Kevin then asked for the calorie count of the cookies and he was told that a single cookie had about 140 calories. Alex asked for its protein content and he was told that there were 6 grams of protein per serving. Victor then told the shark that they had sold cookies worth $1,000,000 in the past year.
Barbara then asked them how they found their customers and she was told that social media had proved to be a major sales channel. Nui cookies had reached out to influencers who were influential in the ketogenic space. Alex Rodriguez then asked them to tell the sharks their backgrounds.
Victor said that his parents were immigrants from Mexico and he had always been an entrepreneur. As a child, he had once bought candy and sold it from door to door to make money. He had then become the first person in his family to graduate from college.
Kristoffer said that he came from the Philippines and his father used to work 4 jobs to support his family. This taught him the meaning of hard work. His mother had told him that if he didn’t like something he should change it. Kevin said that they had impressive sales numbers and he wanted to know how they had done it.
Kristoffer said that it had all been done through their website. They had yet to post on sites such as Amazon but they were launching that month and they expected their sales numbers to triple. Kevin asked them if they had a commercial kitchen. Kristoffer said that they had moved to resell with a co-packer.
Kristoffer said that their biggest problem that year had been acquiring enough inventory to meet demand. They had made $600,000 so far in that year and they had been sold out for the past 6 months. Barbara then asked for their sales prices.
Victor said that the sales price was $29.95 and there was a $4.95 fee for shipping. For $33.95 a person got a box with ten packs and each pack had 2 cookies. Barbara asked them for their cost of manufacturing and she was told it was between $11 and $13 and it depended on the type of cookies being made.
Lori asked them if that was the best price that they could do and they said that it was the best price that they could get to. They also said that they wanted to make a 75% profit margin by the end of the year. They wanted to partner with individuals who had knowledge of the industry.
Kevin asked if they could get the price down to $6 a box and they said that it was their goal. However, one of their problems was that they needed money to buy inventory in large volumes which is what would reduce their prices. Alex Rodriguez then asked them what their net profit had been for the past 12 months.
Victor said that their net profit was $35,000. Kevin complained about them making an 11% profit. Mark Cuban then left because he was working with a cookie company that made very similar products. There would be a conflict of interest for him if he invested.
Lori then left saying that she could not give them an offer close to what they wanted. Kevin then offered them $200,000 for 2.5% of the company. He would also get a $1 royalty until he recouped his $300,000 and after that, he would get 45 cents for every unit sold.
Barbara also made an offer after Kevin. She offered $150,000 as cash and $150,000 as credit and she also wanted 50 cents for every box of cookies sold. For this, she wanted 15% of Nui Cookies. Alex offered $300,000 for 25% and he said that he could relate to the struggles that Victor and Kristoffer faced. For that amount, he would work tirelessly to make Nui Cookies a bigger business.
Victor and Kristoffer asked the sharks if any of them would lower their rates and they all refused. Eventually, Alex lowered his offer to $300,000 for 22.5% and a $1 royalty on every unit sold. Victor asked Alex if he could go back to his initial offer of $300,000 for 25% and he agreed. A deal was then made with Alex.
Victor said that it was worth it to make a deal with Alex because he connected with their background and they knew that there was a bigger pie out there so giving up a large amount of equity was not a problem.
Nui Cookies Now in 2024 – The After Shark Tank Update
With an investment from Alex Rodriguez, Nui Cookies looked like it was well on its way to becoming a household name. It managed to get access to large-scale retailers and was available on Amazon where its products had 3 stars out of a possible 5. Unfortunately, all signs indicate that Nui Cookies is no longer in operation.
The products are no longer available on Amazon or other retail outlets. Its website is no longer in operation and its social media’s most recent post was in 2020. Nui Cookies had amassed a very large following online with more than 90,000 followers on Instagram. Its Facebook has more than 18,000 followers but was also last updated in 2020.
There are several factors that could have led to the company’s closure. It does need to be noted that the deal with Alex was never finalized and so Victor and Kristoffer continued selling the cookies by themselves. Nui cookies had a very low profit margin which could have been a major problem in the long run. On Shark Tank, Victor and Kristoffer had said that they had a problem meeting their demand and this too could have caught up with them.
Hopefully, they shut it and moved on to better things taking with them valuable lessons on how to run a business.