Luma Soda Update | Shark Tank Season 10

Drinking up to 12 cans of diet soda a day, Jim Otteson was taking in high levels of artificial sweeteners like aspartame that affected his health. So, he came up with Luma Soda, a better soda made with honey and monk fruit instead of chemicals. It has way less sugar and no fake ingredients, giving people a cleaner way to enjoy soda. Will the sharks take a chance on it? Let’s find out in our Luma Soda update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to Luma Soda after Shark Tank.

Jim entered Shark Tank Season 10, seeking $500,000 for 20% equity in his soda brand. Ultimately, none of the sharks made an offer. They had concerns about pricing, low repeat sales, and high inventory.

In terms of a Luma Soda update, the company failed to gain sales momentum after its Shark Tank appearance and quickly lost visibility, with its social media going inactive even before the episode aired. Sadly, the company ultimately went out of business due to financial struggles

Shark	Result
Kevin O’Leary	No offer
Barbara Corcoran	No offer
Lori Greiner	No offer
Rohan Oza	No offer
Mark Cuban	No offer

Shark Tank Luma Soda Pitch

• Entrepreneur:  Jim Otteson
• Business: Naturally sweet soda
• Ask: $500,000 for 20% equity
• Result: No deal
• Sharks: None

Jim brought his company, Luma Soda, to Shark Tank, valuing it at $2.5 million.

He explained that after years of drinking large amounts of diet soda as a trial lawyer, he wanted a healthier alternative without artificial sweeteners like aspartame.

That led him to create Luma Soda, made with natural sweeteners like honey and monk fruit, and available in four flavors.

Jim gave each shark a sample. The cherry cola flavor got mixed feedback; most of the sharks liked it, except Lori Greiner. The lime and regular cola flavors didn’t impress.

Lori made it clear she didn’t like the taste of any of the drinks and was the first to drop out.

Further, Jim revealed that all sales were online, direct-to-consumer, with $180,000 in revenue so far that year.

Lori asked about repeat customers. Jim admitted only 10% were returning buyers, but many customers asked when Luma Soda would be available in stores.

A 12-pack sold online for $19.99, which the sharks felt was expensive compared to regular sodas.

Jim shared that he had put in $1.75 million of his own money, which later increased to $2 million, using funds from a home equity line and life insurance.

He emphasized that this money was not company debt.

Mark Cuban and guest shark Rohan Oza were concerned. Rohan pointed out that developing flavors shouldn’t have cost that much.

He also questioned why Jim had $600,000 worth of inventory but only made $15,000 a month in sales.

Jim said past salespeople promised large retail orders, so he ramped up production. Each production run required a truckload minimum, about 204,225 cans per SKU.

Rohan asked why he still worked with salespeople after bad experiences. Jim said his current salesperson worked on commission only and had relationships with three large retailers.

The sharks remained unconvinced. Barbara Corcoran considered investing $250,000 but said she’d only do it if Rohan joined.

Rohan passed, so she dropped out too. The remaining sharks also dropped out one by one until they were all out.

Ultimately, Jim left with no deal. He said an investment from any shark would’ve helped, but promised to keep going despite the setback.

Now, let’s check in for a Luma Soda update.

Shark Tank Luma Soda Update

Our Luma Soda update found that after the episode aired, sales didn’t gain traction. In late 2018, even before the episode aired, the brand’s social media wasn’t even active.

In January 2019, Jim stepped down as CEO. Not long after, the website and Amazon listings vanished.

Unfortunately, Luma Soda officially shut down in 2021. The company ran out of money and went bankrupt.

After leaving the company, Jim returned to his legal career.

He became senior counsel at Dechert LLP in late 2018, then joined Major, Lindsey & Africa in 2021 as a managing director.

Meanwhile, to date, he hasn’t pursued any new products or ventures.

Unfortunately, it looks like this will be our final Luma Soda update.

You can find the other company updates from Season 10 Episode 19 here:

• Pricetitution Update
• Hydroviv Update
• Flip-It! Cap Update

Before you go, be sure to check out our list of all the Shark Tank Season 10 products.