'Shark Tank' founders pitch mess-free protein pods and bag massive $700k deal with two investors
Every gym goer knows how difficult it can be to get a perfect scoop of protein; thus, to solve this problem, Joe and Megan Johnson came up with the concept of vanishing protein pods for their brand, Vade Nutrition. While their product did not get every "Shark Tank" investor on board, they managed to get the two biggest ones, Mark Cuban and Alex Rodriguez, to partner with them on a mega $700,000 deal.
In the episode, Joe and Megan entered the tank seeking $250,000 in exchange for 10% equity. They started their pitch with a bang by describing how important it was for athletes to complete their protein intake, but getting a nice scoop out of a jar was a hassle. Thus, to solve this common problem, they presented their pre-measured protein powder wrapped in a single-serve, dissolvable membrane. They showed how easy it was to drop the protein pod in a shaker and mix the powder on the go.
They shared that the name of their company, "Vade," is Latin for “to vanish,” and that’s what the membrane does, to eliminate the mess measuring, and the need to carry a large jar on the go. They added that each serving of their pod contains 20 grams of protein and just 90 calories, making it one of the leanest protein options in the market.
As they handed out samples and the Sharks tested the pods, not everyone was a fan of the taste. While Lori Greiner complimented the taste, Barbara Corcoran wasn't a fan. Meanwhile, Cuban noted that taste can vary depending on the drink, and there was potential to get better.
When Kevin O'Leary asked for the numbers, the co-founders/athletes shared that they had done $80,000 in sales, and $30,000 of it came in the last month. They further shared that they took some losses on the way as well due to disputes with their supplier. They added that they promoted the product organically through social media, which was a plus point.
However, O'Leary felt that there were significant retail challenges, while Cuban suggested that licensing the membrane technology would be the better way forward. Joe confirmed that they had a utility patent pending on the technology, but their goal was to grow the business.
With everything laid out, the Sharks were ready to make a move. Cuban was the first Shark to make an offer, but he needed to take a bigger bite. "I can really deliver value by keeping you from making these mistakes. So. I need more than 10%. What I'll do is, I'll offer you $350,000 for 20%," he said.
After considering his offer, the entrepreneurs wanted to see if any other Shark was interested as well. However, Greiner, Corcoran, and O'Leary dropped out to almost clear the field. Meanwhile, baseball legend and guest Shark, Rodriguez, seemed to be interested in making a different deal.
"So this business is right in my wheelhouse. I mean, with my sports background, the gyms that we own, we have access to over a thousand gyms," he told the entrepreneurs. He then shared that last year, he and Cuban blew up a similar business called Ice Shaker, so he was ready to go in with Cuban for a $750,000 and 40% equity deal. After the entrepreneurs failed to counter the Sharks with a 25% offer, Joe and Megan accepted the deal and partnered with the two biggest judges.
According to the Shark Tank blog, the deal unfortunately never closed. However, the exposure paid off for Vade Nutrition as it continues to go strong in the market.
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