The two co-founders of Mother Beverage came into the S
Shark Tank Mother Beverage Update
- Entrepreneurs: Allison Ellsworth and Stephen Ellsworth
- Business: Nutritional Apple Cider Vinegar Beverage
- Ask: $400,000 for 10% equity
- Result: $400,000 for 25% equity
- Sharks: Rohan Oza
After passing out sample beverages to each of the sharks, Allison and Stephen began explaining why it can be beneficial and healthy to drink a beverage that has apple cider vinegar. While this was certainly an important part of the pitch, it wouldn’t assist them in the negotiations as much as their own financial numbers from their company.
The company’s been in business for 18 months, according to the duo. Over that time, they’ve generated $500,000 in revenue. Kevin O’Leary wanted to know how profitable they would be, so he raised the question.
While profitability wasn’t a concern according to the margins that Allison and Stephen mentioned, Kevin believed the only way to make money on the business is to sell out at some point in the future. For the record, Allison and Stephen said a single bottle costs about $0.80 cents to make and can be sold for $3.00 per bottle.
The sharks seemed frustrated that the company was planning on manufacturing the bottles on their own instead of hiring a co-packer to manufacture them. Sharks started dropping out pretty quickly. First Bethenny dropped out followed quickly by Mark Cuban, Lori Greiner, and Kevin O’Leary. Rohan decided that he was going to make an offer at a much lower valuation than Allison and Stephen were asking for.
Rohan decided to offer $400,000 for 25% equity because he believed that would be a fair valuation. Allison and Stephen ultimately accepted his offer for their company.
We will now shift focus to find out how they are doing today with our Mother Beverage update. The company was rebranded to be called Poppi with a similar formula and similar health concept. The Dallas-based company can still easily be found online on its website. They are also sold in several health-food stores in their local region.
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