'Shark Tank' contestants make the judges go bananas with their pitch — then got a life-changing deal
"Shark Tank" judges may be sharp negotiators when they get down to business, but they're usually impressed by an innovative or witty pitch. Founders of "Banana Loca", Renee Heath and Bechara Jaoudeh are among the few that made the judges on "Shark Tank" go bananas with their product. The two entrepreneurs pitched their innovative tool that helps fruit lovers fill bananas with their favorite condiments, and got a mascot dressed as the fruit to do it. The Sharks were amused by the oddly satisfying invention as they were left wanting more. In the end, it was Mark Cuban and Kevin O'Leary who went the extra mile to get a banana deal for $250,000.
Seeking $250,000 for 25% of their business, Heath began the pitch by explaining how the Nutella and banana combo is his favorite snack, but making it is a big hassle. Thus, to make the process simple, they demonstrated their product, which comes with tools to core a banana and fill it without taking the peel off.
With a bit of help and coaching from the entrepreneurs, each of the Sharks tried the product and found it to be amusing. Robert Herjavec called it "genius," once he figured out how to do it, and Mark Cuban called the process "oddly satisfying". The Sharks enjoyed that snack so much that some of them claimed it was now their favorite. Jaoudeh went on to add that the tool can be used for other food items as well, like cucumbers, zucchini, and hot dogs.
Once the demo was done, the Sharks got down to business, asking the duo to share their sales. The two entrepreneurs shared that they did $134,000 in sales in 5 months with all organic marketing and had invested $224,000 of their own money into the business. They shared that the landed cost for the product was $6, and they sold it for $26.99. They further told the Sharks that they were looking for the $250,000 for inventory and paid marketing to supercharge sales.
While the high retail price surprised some of the Sharks, Kevin O'Leary was impressed with the sales. He made the first offer, putting up $250,000, but not for equity. Mr Wonderful instead demanded a $3 royalty per Banana Loca sold in perpetuity! After the first offer rolled in, Daymond John made the next move, but not in favor of the entrepreneurs. "I do like it a lot but this is one of those things you'll do with the kids once in a while, and then it's going to sit up there with all the Tupperware. It's not gonna work for me. I'm out!" he said.
Lori Greiner followed suit, saying it was too early for her to invest in the company. However, Robert Herjavec chose to take a flyer and offered $250,000 for 10% equity with a $3 royalty per unit until $350,000 is recouped. Mark Cuban then jumped in, asking about the social media strategy of the company. The two entrepreneurs admitted that they needed more followers and they needed more "star power" to boost their social media.
As they talked about their strategy, O'Leary walked over to Cuban to work out a joint deal. O'Leary tried to convince Cubans to agree to no equity, only a royalty deal, but Cuban wanted 25%. In the end, the two Sharks settled on the offer of $250,000 for 25% equity on top of a $3 royalty until they got their money back. While Heath tried to counter with a $2 royalty offer, the Sharks declined, and the entrepreneurs accepted the original deal.
According to FoodRepublic, Banana Loca got the 'star power' they were looking for from their appearance on the show. According to a report from the Philadelphia Business Journal, the company saw 100 times more online orders, and with the help of viral videos on TikTok, Banana Loca reached global popularity. As per the report, the company is still in business and going strong.
