Wednesday, April 17, 2024

Numilk After Shark Tank – 2024 Update

Numilk Before Shark Tank

Cow milk is the most popular milk taken. However, milk can be got from other sources including oats and almonds and it is just as nutritious. Unfortunately, getting a steady supply is not easy in many areas and so people have to be content with cow milk. This is a problem for vegans who want nothing to do with animal products.

Joe Savino and Ari Tolwin saw that times were changing and wanted to provide the public with a wider variety of milk options but it was not easy. Both were successful entrepreneurs running their own businesses and they decided to combine their knowledge to develop something that could solve their problem. They developed Numilk which was a milk dispenser that offered a variety of milk.

Some of the Numilk options available aside from cow were Oats and almonds. Numilk’s products were made on the spot so instead of filling the dispenser with milk they would fill it with fruits and then make the milk when it was ordered. This ensured that their milk was fresh, unlike packaged milk which has unhealthy preservatives.

Numilk had to spend a lot on research for the company to get up and running and this made them present their business at the Shark Tank. They were on the 18th episode of season 12.

Numilk on Shark Tank

Numilk 2 Joe Savino and Ari Tolwin sought $1,000,000 for 5% of their Numilk Business valuing it at $20,000,000. They gave their presentation explaining to the sharks what their product was and how it helped people get a wider variety of milk. They then invited the sharks to try out some of the flavors of milk that they had as they tested the milk dispenser’s functionality.

Mark Cuban was the first one up and he took some almond milk because he wanted to know what it tasted like. As his bottle filled up he was told that the milk he was taking was fresh and it was not a milk concentrate in the dispenser. Instead, the machine had almonds from Valencia inside it and it was making almond milk at that moment.

Mark praised the device’s speed. The sharks were also given cups and they tasted the almond milk that had just been made. Lori said that the almond milk was very good. Barbara said that the milk did not taste anything like the straw brand. Mark said that the milk was incredible and that the person taking it could even tell that it was fresh almonds.

Lori then said that she wanted to understand what was inside the machine so she told the business owners to tell her the choices. Ari Tolwin said that they were a food tech company and they had built a platform for their product. He then said that the dispenser had almond milk and oat milk inside. However, they could also do casher, hemp, and sesame just to name a few. However, from his perspective, the options were limitless.

Lori then asked how long it would last and what the expiration date would be. She was told that the product had a shelf life of 7 to 10 days but only if it was refrigerated. Kevin then evaluated their business model. If they planned on leasing out the machines then that would require maintenance. They also needed grocery stores to give them around 10 square feet for them to do business. Ari then said that Barbara would understand the aspect of square footage for a business.

Numilk 3 Barbara then said that in Manhattan, rent was $3,000 per foot in a primary location. She then asked how big the dispenser was. She was told that the device was 8 square feet in length and on average a machine was generating a revenue of $50,000 annually. This was a considerable amount because the dispenser was unmanned and no rent was to be paid at all.

Kevin then asked them how much the machines cost. Ari said that the machines cost $30,000. The amount would come down to $15,000 if they could scale it. Daymond saw that the first benefit was that he was reducing a grocery store’s perishable losses. The other benefit was that he was acquiring new customers which Daymond liked. However, he did not know their backgrounds so he wanted to know a bit about them.

Joe said that he had experience in food and beverage and he had done aviation catering before he partnered with Joe to start the business for private jets. After that, he started his own packing company dealing in food and beverages. He started Numilk with Ari after his time in his own business.

Ari said that he also had experience in the space and he had a business called Happy Tree Maple Water. Their product was located in 8,000 stores nationally so he was a second-time entrepreneur. Daymond then asked him if he had an exit on that water company. Ari said that he shut the company down when he started Numilk.

Barbara then asked them how much the bottle of milk that Mark Cuban had filled up would cost. Ari said that customers would be charged $2 for the bottle but it was a one-time fee. If the bottle was brought back the cost of a refill was $3.99.

Mark then asked how much would go to a grocery store if the milk cost $3.99 and a bottle cost $2. Ari said that a grocery store took about a third of the profits. Kevin then asked them how much they had raised and he was told that they had raised $12,000. The sharks were very impressed by the amount raised.

Numilk 4 Kevin then asked them what their last valuation was and they said that their last valuation was $40,000,000 pre-money. They had negotiated with their investors in advance so that the sharks would be given a deal appropriate for them. Daymond then asked if there was a bigger picture.

Ari said that there was a bigger picture and then Joe revealed a countertop device that they had made. Ari said that they took a grocery machine and shrunk it down so it could be used on a countertop. Daymond said that he thought that the device was a necessity for a family. Lori then asked what the device would cost and she was told that the device cost $85 landed.

Lori then asked them what they planned to sell the device for. Ari said that he planned to sell it for $199. Daymond asked to be shown how the machine works but he was told that what they had was just a 3-D rendering prototype. Kevin then asked for their top-line and bottom-line numbers for the last 3 years.

Ari said that in 2018 they had $40,000 in revenue but they also spent $2,000.000 on research. In 2019, they spent about 320,000 on machinery and lost about $3,000,000 on research.  In 2020, which was the year that the show was done, they had planned on realizing $6,000,000 in sales but due to the coronavirus and other complications, they expected losses of about $6,000,000.

Mark Cuban asked them how much cash they had in the bank and they said that they had $3,000,000. They also expected to make $400,000 in sales that year. Barbara then left and she said that it was because she did not understand what the business was about. Daymond said that he was also confused and so he left.  Lori also left and she said that the business was not investable for her at that time.

Numilk 5 Mark Cuban asked what it cost to make the stainless steel dispensers and he was told that it cost $300 to make and the device was sold for $700. Kevin then offered them $1,000,000 as a loan accruing interest of 9.5% annually and for that, he wanted 5% of the business. Mark Cuban then offered them $2,000,000 with $1,000,000 for 7% of their business and the other million as a loan accruing 3% interest and he would also get an additional 3 % of stock as advisory shares.

Joe and Ari then accepted Mark’s offer. The pair said that they were very excited to work with Mark Cuban and take Numilk to new success.

Numilk Now in [Year] – The After Shark Tank Update

Numilk 6 Numilk got a deal from Mark Cuban and business went on well. However, when we checked their website we found that it was not active. Could the company have shut down? That is possible but their social media is still running and they are still posting which could indicate technical problems but not necessarily the cessation of business activities.

A business could be experiencing problems more than just sales. It could also have internal coordination problems that would make it difficult to operate. Numilk had previously announced that it would be dissembling its in-store machines.

This would mean that customers would now have to turn to the Numilk home and the Numilk pro for their needs. Numilk had started on the premise that people could get a milk dispenser so removing the in-store machine indicates that the company is changing its business model completely. Such a major change in strategy could only be explained by the initial strategy not being successful.

On Facebook, Numilk has over 1,600 followers, and over 10,000 followers on Instagram. It is located in New York City and has not disclosed its annual revenue since its time on the show but it is likely experiencing some trouble in the market. It was started by two successful businesses and hopefully, they will pull it out of whatever problems it is experiencing.

Victor Kamwengu
Victor Kamwengu
Victor is a movie buff, dog lover and author of a wide variety of subjects. When he's not tapping away at the keyboard, you can probably find him cozied up on the couch watching a cult classic or catching up on new releases.
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