Rumi Spice Saffron Update | Shark Tank Season 8

Afghan farmers have been trapped in an unstable economy, cut off from international markets after decades of war, leaving many reliant on cultivating opium to survive. To address this, Kim, Emily, and Keith partnered with Afghan farmers to market the world’s finest saffron, creating a sustainable source of income while bringing a premium spice to global consumers. Is this an idea the sharks would love to invest in? Let’s find out in our Rumi Spice update and pitch recap.

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

Emily, Kim, and Keith entered Shark Tank Season 8, seeking $250,000 for 5% equity in Rumi Spice. After their presentation, they secured a deal with Mark Cuban for $250,000 for 15% equity.

In terms of a Rumi Spice update, the company gained recognition in publications like Forbes and expanded its reach by selling products in Whole Foods stores nationwide. Furthermore, Rumi Spice secured funding from InFrontier, which enabled them to scale operations

Shark	Result
Mark Cuban	Accepted offer of $250,000 for 15% equity
Robert Herjavec	$250,000 for 25% equity
Kevin O’Leary	No offer
Lori Greiner	No offer
Daymond John	No offer

Shark Tank Rumi Spice Pitch

• Entrepreneurs: Emily Miller, Kim Jung, and Keith Alaniz
• Business: Sustainable saffron from Afghan farmers
• Ask: $250,000 for 5% equity
• Result: $250,000 for 15% equity
• Shark: Mark Cuban

Emily, Kim, and Keith, U.S. Army veterans who served in Afghanistan, entered Shark Tank with a mission to empower local farmers by producing the world’s finest saffron.

They sought an investment to expand their product line and enhance infrastructure for Afghan growers.

Rumi Spice is a brand that sources and sells premium Afghan saffron, one of the world’s most expensive and sought-after spices.

The saffron is hand-harvested, which ensures freshness and superior quality compared to older or lower-grade saffron from other regions.

Furthermore, the entrepreneurs partner directly with Afghan farmers and reinvest profits into local infrastructure.

This creates stable income opportunities for communities in a war-torn country.

The business targets both individual consumers and restaurants. It sells saffron through retail, direct-to-consumer platforms, and partnerships with companies like Blue Apron.

Additionally, they offer saffron-infused products such as ghee, honey, and spice blends and plan to expand into the tea market.

The entrepreneurs face high production costs and a small market but focus on the quality of their product and its social impact.

They sell their Saffron for $18 per gram in stores and $140 per ounce in restaurants.

Gift bottles sell for $35 but cost $8.30 to make, leaving a 76.3% gross margin.

Producing one gram of saffron takes 150 hours of manual work, showing how exclusive it is.

At the time of their pitch, they had generated $400,000 in revenue and expected to reach $750,000 by year-end.

They projected $1.5 million in revenue for 2018 and anticipated becoming profitable the following month, with a net income of 5% of revenue.

Online sales have gross margins of 75–80%, but due to reinvestments, pre-tax margins are below 20%.

Daymond John says he has issues with the high price of saffron. He is the first shark to opt out.

Lori Greiner loved the mission but did not like saffron personally, so she opted out without making an offer.

Kevin O’Leary says he respects their military background and appreciates their progress so far.

However, he believes the company’s valuation is unrealistic and their financial projections are weak, so he decides to step out.

Mark Cuban says he is impressed by their social impact and their commitment to building a brand beyond the spice industry.

He offers $250,000 for 15% equity, citing his previous investments in military-based companies as part of his motivation.

Robert Herjavec says he sees potential in their early-stage business but feels the risk is high.

Nevertheless, he offers $250,000 for 25% equity, explaining that he believes this higher equity share reflects the work needed to scale the company.

Ultimately, the entrepreneurs decided to accept Mark Cuban’s offer of $250,000 for 15% equity.

Was this the right investment for Emily, Kim, and Keith? Let’s find out in our Rumi Spice update.

Shark Tank Rumi Spice Update

Our Rumi Spice update found that the deal with Mark Cuban did not close. We know this firsthand because we did not find the company in Mark’s investment portfolio.

However, despite this, Rumi Spice has been featured in various publications, including Forbes.

Most notably, Rumi Spice products are now available in Whole Foods Market stores across the United States.

In 2018, the founders appointed Patti Doyle as CEO to manage the company’s operations.

This strategic move allowed the entrepreneurs to focus on other critical business areas, including product development and market expansion.

In December 2018, our Rumi Spice update found that it secured a $2.5 million Series A investment from InFrontier, a prominent venture capital firm.

This funding played a crucial role in expanding their product line and scaling their operations to meet growing demand.

While the company has not disclosed specific sales figures, estimates suggest that Rumi Spice generates approximately $5 million in annual revenue.

If we get another Rumi Spice update, we will let you know.

To see what happened to the other companies pitched in Season 8 Episode 23, take a look at our updates:

• Thompson Tee Update
• Wallet Buckle Update
• Peoples Design Update

Before you go, be sure to check out our list of all the Shark Tank Season 8 products.