All language subtitles for Shark.Tank.S12E02.720p.WEB.h264-KOGi

Tonight on
"Shark Tank," Kendra Scott,

the founder of billion‐dollar
jewelry brand Kendra Scott,

joins the Tank.

I am one of 20 women
in the United States

to be a founder
of a billion‐dollar brand.

Our mission
is to create a community

that represents all women.

‐Girl power. ‐Hell yeah, sister.

Breakfast and snacking
just got a whole lot simpler.

‐Wow. ‐Who's gonna help me

save this planet
one pup at a time?

You know this is gonna be
a $100 million brand.

This is a home run.

If you don't nail this deal,

you don't know
if there's more to come.

I'm gonna change your life.

‐Oh, my gosh!
‐Barbara, I'm sorry.

I like her
more than I like you now.

First into the Tank
is what the entrepreneur hopes

is a better and more
affordable experience

when shopping for intimates.

Hi, Sharks. My name is Elly.

I'm from San Francisco,
California,

and I am seeking $500,000

in exchange for 5%
of my company...

‐Hello. ‐Wow. Wow.

‐...BootayBag. ‐Ha.

BootayBag is an affordable,

comfortable, and convenient way

for women to shop for underwear.

I started BootayBag because
I was sick of going to the mall,

the semi‐annual sales,

the clearance bins,
the sales clerks.

I wanted to give women
that sexy feeling

of sliding on
a new pair of underwear

without all the hassle
or expensive price tag.

So, here's how it works.

You select how many pairs
you want to receive in a month,

your size, your style option,

and for just $10, we'll deliver
your new favorite undies

all without leaving

the comfort of your couch.

Our mission is to not only

bring a necessity to women
at an affordable price,

but to create a community
that represents all women.

This brand is made
for women, by women,

and with every pair purchased,
we donate to women in need.

So, Sharks, who's with me

in making all women feel good
in their undies?

‐Terrific pitch. ‐Amazing.

Elly, is it
a subscription service?

Yes, it is.
It's a monthly subscription.

You're not committed
to anything.

So, you can get one pair for $10

or two for $15.

You can get all four for $20.

And that's every month I burn
through four underwear?

Yes, I knew
you were gonna say that.

‐Yeah. ‐You can skip

or cancel at any time,
but you can also go in

and switch your styles
or downgrade or upgrade.

Two pair ‐‐
‐Are these the samples?

‐Yes.
‐Can we, like, look at them?

'Cause I'm dying.
‐Oh, sorry, guys. Yes, yes, yes.

‐I want to ‐‐
‐Dig in. Everyone gets some.

And this is how I get it?
Yes, yes.

Like, in this ‐‐
"Hello, babe, I'm here"?

"Hello, babe, I'm here." Yeah.

So, okay. And you're
manufacturing the underwear?

Yes. So, it's my design.
I stuffed them extra,

so you guys have bralettes
in there, as well,

which I know will look fabulous
on you, Mr. Wonderful.

‐Wow. Sexy.
‐Is this making you ‐‐

You know, Elly,
there's been a lot of ‐‐
Lookit.

‐Mark's blushing over there.
‐I'm not blushing!

He got a little G‐string,
that's why.
He's like ‐‐ Yeah, I feel like

I see you blushing a little bit.

So, how did you
get started in ‐‐

I mean, where did this
come from?

I know, right? Well,
my parents are entrepreneurs.

So, although I thought I was not
paying attention my entire life,

I clearly was.

But I also was, like,
always a hustler,

always liked money,
like, lemonade stands ‐‐

Girl power. Oh, my God.

Hell yeah, sister.

We have to talk. Yes.

When I turned 18,
my mom owns a hair salon,

and I spent all my summers
kind of, like, helping her out,

and I just felt like,
"This is kind of my path.

I'm gonna take over the salon."

And I kind of stumbled upon
going underwear shopping

and waiting for the five for $25

and going and digging through
the bins, and I was like, "Ugh.

This is, like, such a terrible
shopping experience,"

and I was like, "Hell,
I'm gonna just do this.

It's gonna be easy."

I had a website within two days

and borrowed $300 and ‐‐

‐$300? ‐When was that?

2016.

And since then,
what has sales looked like?

Year to date,
we've done $3 million.

‐$3 million? ‐Wow!

‐Son of a gun! ‐Wow.

‐$3 million? ‐Yeah.

‐Amen, sister. You're amazing!
‐Thank you. Thank you.

That's amazing!

Well, you've inspired me.

I actually saw your panel
four years ago,

and you rocked my world.

‐Oh, cool. ‐So, I have to say,

like, being here is so cool.

You know, you started with $300,

but how much have you raised
since then?

So, I've raised none.
I have no debt.

Wow.

You've raised no dollars?

No. I'm hoping to raise today.

How did you pay
for the inventory?

I just went to the store,

I got clearance underwear,
and I did the packaging.

And then I graduated from that,

and then I was like,
"Oh, online,

where can I buy bulk underwear?"

And then I found a manufacturer,
and I did private label,

and I graduated all the steps,
and, actually, my demand

forced me to figure out
how to produce my own line.

Best story I've ever heard
so far, okay?
I love this.

‐Wow.
‐But how did people find you

at the beginning? ‐Yeah, so,

we have a huge following
on Instagram.

And how did you garner
that following?

It's all actually user‐generated
content on our feed.

So, we have real women posting.

We don't edit our content,
so it's as you come.

Just one last number. Yeah.

Cumulative lifetime sales.

Yeah, so, $15 million to date.

‐Wow. ‐I mean, $300

to $15 million in sales.
‐Unreal.

It really is.
‐Elly! You're a rock star!

Guys, I was so nervous!
I'm so excited! Thank you!

You should be!
The one thing that I think

is getting everybody so excited,

'cause it's really
worth talking about,

is every other
subscription service...

‐Yeah.
‐...has to raise a ton of money

early on to acquire customers.
‐Right. Right.

You should be
rolling in the dough.
So, yeah, so ‐‐

Why are you coming here
and asking for $500,000?

Yeah. So, our production
actually is ‐‐

I use a broker right now.

In a proper scenario,

if I did have the direct
factory connection,

I would be able
to have shorter lead times.

I'm working on extremely long
lead times, because I'm just ‐‐

What are your lead times
right now?

They're about eight months
to nine months.

‐Whoa. Eight months?
‐Wha‐‐ Eight mo‐‐

So, you're designing a product,

and you don't get it in‐house
for eight to nine months?

‐Yeah. ‐Why is that?

So, I'm kind of in their mercy.

I'm very small on some of
the scales that they do.

Why don't you partner
with the manufacturer

so that you never
have inventory?

Well, that's why
I'm kind of here.

- That's why she's here, yeah.
- You know, it's my first go

at all this, and so I'm kind of
just figuring it out as I go.

So, you really haven't
made any money yet.

I mean, we net 5%.

Whoa.

All Sharks are still in,

but they have discovered

Elly only makes a small profit
on the huge sales

of her lingerie subscription
business, BootayBag.

So, you really haven't
made any money yet.

I mean, we net 5%.

Whoa.

Successful clothiers that have
real scale make 15% pre‐tax.

‐Yeah. Yeah. ‐You're at 5%,

so there's 10% of cost in here,

and I think I'm gonna
find it all in the inventory.

Yeah.
And so you got to
get rid of that.

You got to partner.

It's worth giving up some of
this equity to your manufacturer

to solve this problem. ‐Yes.

Yes. You nailed it.

But in order to make money,
I need to be big,

and I have
manufacturing problems.

You're serving almost
as a retail store for them.

‐Right. ‐They manufacture,

then they wholesale it to you.
‐Right.

And you're kind of
at their mercy,

'cause you're not going direct
to the factory.

Yeah. Totally,
and they know me, as well.

So, in the four years
I've grown up with them,

they've never been
"a partner" to me.

How are they treating you?

I'm just curious.
‐Terribly. Absolutely terrible.

‐They treat you terribly?
‐Unbelievable.

Are they men?
‐Yeah, are they women or men?

Um, men, yes.

‐What a surprise. ‐Yeah.

They have never, ever
been flexible with me.

They've made me take product

that was actually, you know,
stained or damaged,

and, like, I just had to do it.

They don't ‐‐ You should have
just sent it back and said no.

Well, they know
that every month,

I have to, on the 15th,
put out product.

So, this is a real pain point
for you?

It is, yeah,
and that's why I'm here.

You know, Elly, I love you,
first of all.

Oh, my God. Cool!
I love you, too!

I am so impressed with you.

Thank you.

What you have created with $300,

how you have harnessed the power
of social media,

you're creating a movement
around your brand...

Yeah. Hell yeah.
...which is so unbelievable.

You know my story.
I started with $500

out of my extra bedroom. I know.

The first few years,

my margins also
were not what they are today,

because I wasn't able to harness
great manufacturing deals.

I didn't have
the production I needed.

But over the last 18 years,

those things have been able
to change, right?

I don't want you
to have to wait 18 years.

And I didn't take an investor

for the first 10 years
I ran my business.

I did it on credit card debt,
lines of credit, LLCs ‐‐

I mean, you name it.
It was hard, right?

And one of the things I wish
I would have done earlier

is bring in somebody
as an investor

who had a vested interest
that could have helped propel me

quicker than taking 18 years,

and I think I'm the Shark
that can do that for you.

So, if it's okay, I'm gonna
offer you the $500,000.

But I want 10%.

I understand subscription.

We've done that in our company.
We know how to create community.

You're a female founder,

and there's not enough
of us out there.
Hell yeah.

I am one of 20 women
in the United States

to be a founder
of a billion‐dollar brand.

So I'm gonna give ‐‐ My money,
I like to call it Kendra Cash.

‐Nice.
‐It's a little unicorn magic

in there sprinkled in
for that 5%.

‐Okay, Lori. ‐Alright? Alright?

I want you
to become a unicorn, too,

and I think
I can help you get there.
Thank you.

Thank you. I love that.

May I make you
an offer, as well?

I could solve
the two real problems you have.

You don't get any money
out of this business,

and that's a problem.
That's what business is for.

I have a business that's been
in business five years ‐‐

Grace & Lace.
They sell like gangbusters.

I'm only a 20% partner,

and last month,
I got a $700,000 check.

‐Nice. ‐They're so cash‐rich,

and they're in the exact
same business you're in.

The other problem is you don't
know how to manufacture in Asia.

You just don't have
that experience.

Because I have that experience
at Grace & Lace,

I can deliver all that
to you immediately.

And so, I would like
to give you the $500,000,

but I really
would have to take 20%.

Well, I appreciate
everybody's offer.

I didn't even say thank you.
‐Wait a sec.

Wait a second. Hold on.
Wait, Barbara,
what if we went in together?

At 20%, there's enough
for each of us, not at 10%.
At 20%. At 20%.

I would also
like to make an offer.

I look at this
from just the sheer economics.

I know where the 10% to 15%
is missing.

It's in the manufacturing.

I also have logistics
in Vietnam.

I've got three companies
manufacturing there now.

So, the right price for me
is to give you the $500,000.

I was gonna say 20%,
but to get competitive

and kind of sit in the middle
between these offers,

I'm willing to throw you,
you know, a very good offer

that I wouldn't normally make.

I know. This is crazy.

$500,000 for 15%.

Just say yes,
and we'll move forward.

I'm gonna go out, Elly,

because I think you've got
some good choices.

Elly, there's one other thing
to consider.

‐Yes. ‐I have Rounderbum,

men's augmented underwear.

Yes, you do! Remember them?

And I tell you,
I'm the only Shark

in the underwear business
right now,

and I make a lot of men happy.

Well, listen,
I'm so proud of you

and everything
that you have accomplished,

but Kendra and Barbara
have made you a great offer,

so I'm going to go out.

You have to decide.
We have one offer here, okay?

Kendra and I combined for 20%
of your business for $500,000,

and then you have this guy,
whatever he's gonna talk about.

Why give up 20%?
That's so greedy.

And the valuation on that is ‐‐

But look what you're getting.

Um...

Would you guys go up
to $700,000 for 20%?

‐Wow. ‐For ‐‐

$700,000 for 20%?

‐Yeah. ‐Who's a Shark?

Absolutely not.

‐Yeah. ‐No.

You're not worth
$10 million today. You're not.

And when you bring on
the right team,

that is worth more than
you could ever put on a check.

Right.

But you have to feel
comfortable with that, too.

Yeah.

You know, 20% just
feels a little high,

and I'm not undervaluing
you guys at all.

I appreciate
both of your offers.

It just ‐‐ It was a little bit
higher than I wanted to go with.

I'm willing to do it at 15%.
Okay.

I'll go back
to my original offer

if you're not
comfortable with that.

I'll do $500,000 for 10%.

Excuse me.
Did you just abandon me?

I abandoned you.

‐It sounds like ‐‐ ‐Wow.

I abandoned you,
because I could see in her face

that that made her feel sick
and made her feel less than

and made her worth feel
not valued, and I can't ‐‐

So, you're willing
to do it for 10%?

With my original offer.

I think 10% is fair

based on my experience. Done.

Let's not even
think about it anymore.

Yes. It's done?

‐Done. ‐Whoo!

‐Wow. Barbara.
‐I love it! I'm so excited.

Sorry. I appreciate
you guys, everybody.

Don't you apologize.
Terrific partner.
Oh, my gosh. Thank you.

Congratulations.

Thank you guys. Thanks.

‐Congratulations. ‐Thank you.

So excited.

Sorry. Barbara, I'm sorry.

I like her
more than I like you now.

I wanted Kendra. I got Kendra.

We're ready
to take over the world,

one booty at a time, baby.

Whoo! Yes!

I would have liked
a piece of the Bootay.

You're not getting any Bootay.

No Bootay for you.
No Bootay for you.

I was raised in a little town
in Wisconsin,

one of six siblings.

My mother and father
were both extremely hardworking

and have been incredible role
models for me my whole life.

Since I was young,
I was kind of awkward.

I was almost blind
in my right eye,

so I had these big, huge glasses
that I wore.

Kids sometimes bullied me,

but it taught me so many things
to overcome obstacles.

I was lucky enough
that I have this amazing aunt

who is a fashion director
of a department store.

I would go into her closet,
and fashion was magical to me.

You could put on a beautiful
piece of clothing

and her jewelry,

and you could transform
into anybody you wanted to be,

and that's when it hit me ‐‐

This is the business
that I wanted to be in.

At age 19, I started
my first company.

It was The Hat Box.
I sold every kind of hat.

I realized very quickly

that this business
wasn't going to be sustainable.

People wearing hats again
like it was 1940 didn't happen.

I had to close
that first business. It failed.

It was one of the lowest
moments of my life,

and in retrospect,
I look back to it now,

and it was also the greatest
gift I was ever given.

What was so funny is I made
jewelry for my hat store,

and it would sell the day
that I'd put it in the case.

But I was so headstrong
that the hat thing had to work

that I wasn't paying attention
to what was working.

So, in 2001, I started
to create some jewelry.

I went store to store
in Austin, Texas.

I sold my sample set,
and I got a check for $1,500.

And I walked in the front door,

and I remember saying
to my husband,

"Baby, we got ourselves
a business."

I loved beautiful
semiprecious stones,

but I couldn't afford what was
out there in the marketplace.

And I thought,
if there was a way

that I could make beautiful
hand‐crafted jewelry

but at an attainable
price point for women,

that that might be something
that they would want.

Today, Kendra Scott Jewelry

is valued
at over a billion dollars.

To be one of 20 women
in the United States

to be the founder
of a billion‐dollar company

is absolutely unbelievable.

Right now, only 17%
of venture capital

goes to women‐founded companies,

and I think it is
my responsibility,

along with all the women
of this generation,

to start to change that.

It's been a very hard year
for everybody,

but to be in this seat and to
see this energy and excitement,

entrepreneurship
is not going anywhere.

There is nothing
that is going to stop the drive

and the passion
of an entrepreneur.

And I can't wait
to meet these entrepreneurs,

see their business ideas, and
help them achieve their goals.

Next up is
a convenient and delicious way

to ensure you don't miss out

on the most important
meal of the day.

Hi. My name's Nahum Jeannot,

and I'm seeking $150,000
in exchange for 10% equity

in my company, GoOats.

Sharks, we all know

breakfast is the most important
meal of the day.

But in your busy morning, the
last thing you want to be doing

is spending time
making breakfast.

And let's be honest ‐‐
A granola bar is not a meal.

Your morning meal
should be effortless.

We all know oatmeal is
a hearty way to start the day,

but who wants to stand here
at the stove

and whisk this slimy mess?

Who wants to juggle a spoon
and a bowl as they drive?

Well, breakfast and snacking
just got a whole lot simpler.

Let's get rid of this mess.

‐Whoa. ‐

Sharks, today, I give you

the first‐ever
oatmeal in a ball.

Same ingredients you might
put in your oatmeal at home ‐‐

milk, butter, sugar,
steel‐cut oats.

We're doing the work for you,

but we're making them
bite‐sized, handheld,

in a heat‐and‐eat format.

It's so simple to prepare, for
creamy oatmeal within minutes.

It's that simple.

Who's ready to try GoOats'
oatmeal in a ball?

‐All I need to know.
‐How did you start making

oatmeal balls?
How did this start?

At 16 years old,

I had my first opportunity
to work in a restaurant.

I started off as a busboy,
then a food runner.

In the middle of a shift
on a Saturday night, a cook ‐‐

I guess it was too busy.
A cook walked off the line.

The owner comes running in.

She's like,
"Hey, I need a cook."

And that was over 16 years ago,
and I never looked back.

So, basically, after that stint
in the restaurant,

I decided, "Okay, this is
what I want to do with my life,"

and so I embarked
on my culinary journey.

I got to work at awesome places

like Four Seasons Philadelphia,
W Hotels,

and most recent, Hyatt Regency
in Tysons Corner.

‐Wow.
‐And so, I was the head chef.

They asked me
to write a breakfast menu

that our guests
could easily pick up,

walk around the hotel with
without making a mess.

The response that I got,
I was like, "Wait a second.

There's something different
about this one."

And that's ‐‐
So, that was in 2015.

I'm like, "You know what?
I'm gonna share this

with the rest of the world."

Nahum, I have to interrupt you.
I love that story.

This ‐‐ I'm an oatmeal lover.

Ah. This is better than oatmeal.

It is so good.
It's really, really,
really good, man.

It's crispy on the outside,
and it's creamy on the inside.

Let me just tell you ‐‐
I don't eat breakfast.

I'm not a breakfast eater.
I would eat this all day.

And I'm always running late...

Yeah.
...'cause I have three boys.

And getting them out the door
in the morning is a nightmare,

so we'll do cereal bars
or something if they're ‐‐

You know, I'll have breakfast
sometimes served,

and they never have time.
They're getting their backpacks.

They're throwing their stuff in.
Yeah.

So, this is really cute
as a package,

but the whole point is,
is that you've got to heat it.

No. So ‐‐ So, wait for this one.

‐Okay. Waiting for it.
‐Wait for it.

That box can go into the oven
and be baked.

‐Wow. ‐What?

‐Well, there you go.
‐The reason ‐‐

Okay. ‐Just like this?

Yes. Just like that. Yes.

How long do you
have to bake this?

How long does that take?
‐So, from frozen,

it takes about 10 to 15 minutes.

Oh. But it says microwave
for 30 to 60 seconds.

Wait, you can microwave it?

‐That's the microwave option.
‐Mark.

When you're hungry and you want
something you trust,

and particularly if I could take
something like this in the box,

pop it in the microwave
for a minute,

grab and go and drive and eat,
'cause I'm a driver‐eater.

Me, too. It must be
a Texas thing, don't you think?

‐Must be, right? ‐Yeah. Must be.

Must be. And so,
that's efficiency to me.

So, do you sell them like this
or only like this?

So, right now, we ‐‐ we're
selling them in the pouches.

Oh. Wow.

That's what we created.

They're being sold
currently in Whole Fo‐‐

This is just for ‐‐
But that keeps them good, right?

Where are they being sold?
These three,
when you say 170 calories,

which is what it says here...
‐Yes.

...is that three, or is that ‐‐

‐That's for three. ‐Okay.

How quickly can you
get the boxes out?

‐It's already set up. ‐Okay.

‐So let's talk about your sales.
‐Sure.

First year,
we did $13,000 in sales.

And what year was that?

2017. 2018, we did $57,000.

Okay. And 2019?

2019 was about $54,000
to $57,000.

It was pretty much flat.

And how are you selling them?

March of 2017,
I walked into a Whole Foods.

At that time, Whole Foods
was allowed to bring in

local products in their region.

And so, while I still had
my full‐time job,

I'm going into production
during the week ‐‐

Making them yourself?

You're putting them
in the package

and delivering them
to the stores?

‐Yes. Yes, sir.
‐At least you're hustling

to see if there's any
proof of concept, right?

Exactly. I'm proving
the concept.

‐Is it selling through? ‐Yes.

So, you're working
a full‐time job still?

I got laid off in March
due to COVID.

All our hotel business left.

‐Oh, my.
‐I know for a lot of people,

that would be, like, a negative.

I was actually ‐‐ I looked at it
as a blessing...

‐Yeah. I think so, too.
‐...you know, from God,

because I get to work on GoOats
full‐time.

So, what do you sell
this bag for?

I sell it into distribution
at $2.66.

‐That's all? ‐Yeah.

And what does it
cost you to make?

$1.35.

Well, that's the problem.
You're not charging enough.

They sell it for $4.99.

That's not enough.

‐Okay. ‐That is not enough.

Everything above your cost
has to have $1 added to it,

'cause you're not making enough
margins to scale this business.

I'd like to make you an offer.

I'll give you the $150,000,
as you asked,

but I will have to have 25%.

Ouch.

Okay. And the second thing ‐‐

I'm gonna help you
with the big box stores.

Once you start getting
into big box stores,

you're gonna have slotting fees.

Just getting your phone call
met, it is a nightmare.

Very few people are able
to navigate that and do it well.

So, for that 25%,
you will have my help on that,

and I know that landscape
like the back of my hand.

So, $150,000 for 25%.

What do you say?
‐Do I have the option

to kind of, like, hear out
if there's anything else?

I appreciate your offer.

No, I don't want to be ‐‐

I really don't care for
to be shopped around,

but you can certainly give me
a counter if you wish.

So, I would ‐‐

Nahum, this is
a moment of focus,

because the risk you have is,
if you don't nail this deal,

you don't know
if there's more to come.

‐Burn that. ‐If there isn't,

you're giving her
tremendous leverage.

So, you really need help, buddy.

I mean, you really do.

Why don't you be quiet,
Mr. Wonderful?

I do need the help, but ‐‐

And I love Barbara.

For that amount of equity, like,

I was hoping
that maybe I could ‐‐

Like, who's your best friend
on the panel?

You know, who do you
get along with the most?

Like, could you
pull them into it?

Well, let me tell you
who I don't like.

I don't like Mr. Wonderful
at all.
Oka‐‐ Okay.

But I love Mark
'cause he's a billionaire.

Now, what does that
have to do with it?

My hope is that, like, I can ‐‐

I was hoping we could
have a conversation.

If we're gonna go
that high in equity,

like, maybe you could bring one
of your friend‐‐ Like ‐‐

Let me tell you what's wrong

with having two Sharks
on a deal.

You wind up immediately
forming a committee.

I have to check ‐‐
Let's say I bring Mark in.

I check with Mark.

Mark says, "Hey, let's see
what Barbara thinks."

It goes back and forth.
I try to call Lori,

it takes me two weeks
to get a return call,

and that's the truth, okay?
She's so full of it.

But then I call her husband,

and he calls me back,

'cause he's always
wanted to date me.

So it goes on and on and on.

‐Bubba! ‐That's amazing.

I don't blame him.
So, you're better off
with one Shark

in the same way you're better
with one wife.

You can hyper‐focus on her
and make her happy.

‐Of course.
‐I can make you happy.

Okay.

Do you have a counteroffer?

Would you be willing
to do 150 grand

for 15%?

No, it's just too low.

What do you say
we compromise at 20%?

Big moment for you here.

You get this shot once.

Okay.

Bingo! We got a deal.

‐You made the right choice.
‐You made a great choice.

‐You made the right choice.
‐Great product.

‐I know we can't hug, but...
‐Congrats. Such a good product.

‐...I'll hug you in spirit.
‐Love your product.

Great job.

‐Love you, baby. ‐Great job.

Barbara believes
not only in me, right,

but she also believes
in the product,

and that's who
I want on my team,

and the joke's gonna be
on all the other Sharks.

Next into the Tank

is an eco‐friendly solution
to a heaping problem.

Hello, Sharks.
My name is Tracy Rosensteel,

and I'm from, Barbara,
New York City.

‐Yeah. ‐

I'm here seeking
a $250,000 investment

in exchange for 12% equity
in my company.

So let's get down to "business."

We all know that dogs...

well, dogs poop,
and they poop a lot.

There's an estimated
22 billion pounds of doggy doody

dropped each year
in this country alone.
What?

Ew.
You know what that
makes me think, Sharks?

That is a heaping, huge mound

of stinky... opportunity.

So, what happens
to all that waste?

There are millions
of pet parents

who can attest to using
single‐use plastic bags

that are discarded and end up
in landfills each and every day.

One common denominator of every
product that's on the market

that's "eco‐friendly"
is plastic.

Sharks, allow me
to introduce you to Pooch Paper,

a paper alternative
to plastic dog waste bags.

Pooch Paper is already recycled,
non‐chlorine‐bleached paper

that's 100% compostable,

100% biodegradable,

made right here in the USA,

and manufactured
using renewable energy.

So, in three
very simple steps ‐‐

simply take
the piece of Pooch Paper,

grab your doggie's doody,
no matter how big or small...

...twist the sides of the paper,

which, by the way, on both sides
is grease‐resistant,

and then toss in the trash.

So, Sharks, nature is calling,

and Pooch Paper is picking up.

Who's gonna help me save
this planet one pup at a time?

That was great.

‐This is amazing. I love it.
‐Tracy ‐‐ Tracy, big issue here

about this, okay?

I'm gonna tell you
a quick story,

and then you'll have to answer
this question.

Okay.

When I first moved to Boston ‐‐

It was maybe the first week
I was there ‐‐

I was up at 4:00, I had
my lights on in the kitchen,

and a man with a Great Dane
was wal‐‐

It was February,
and the man was walking the dog.

He looked around,

and our eyes met,

and I knew at that moment,
he was very unhappy,

because I saw him.

I saw the steaming ‐‐
And he had to pick it up.

And that piece of paper

would not even pick up half
of that steaming tower.

Alright. So, these are 12x12.

Later this year, we'll be
releasing a SKU that's 15x15,

so larger. ‐Now we're talking.

‐Yeah, which makes sense.
‐That's my question.

So, if you have
a really big beast,

and it's laying down
serious traction ‐‐
A pony.

Are you talking about you,
Kevin, or a dog?

Yeah.

‐I love it! ‐I like her.

So, for me, when I walk my dog,
I can't be carrying this.

So, what I like
about my poop bags right now

is that they're in a very
convenient little holder,

so when they do decide to go,
I could just grab it out, right?

Right. And how do I hold these?

So, I've partnered with somebody
who has a product,

and I just resell it,

and it's a 3x3 canvas pouch,
zip‐pouch,

and then it has a snap
that you can put on your leash,

you can put it
on your belt buckle,

your wrist, or your stroller.
And you sell those?

I do sell those, yeah.

Tell us about you.
What's your background?

So, like Kevin, I've spent
20 years on Wall Street.

I work actually
in trading floor technology

on the Board of Trade.
‐I get it.

Wall Street, dog poop.
Same thing.

But I'm interested, Tracy.

You know, concerns flow away
when you have sales.

Numbers. Are there any?

Yes, there are.

So, we have been on the market
for about seven months.

Sales since inception
are just shy of $50,000.

$50,000.

So, Tracy, what does
one box cost,

and what does it
cost you to make?

So, it costs me $3.66 landed.

I wholesale it for $6.99.

It retails at $12.99. ‐Got it.

That's a 48% margin.

Okay, so because
you're from Wall Street,

this is gonna be
very easy to do.

$250,000 for 12%.

I'm just ‐‐ The leap of faith to
give you a $2 million valuation

when you've only got
$50,000 in sales,

you see any problem with that,
Wall Street Tracy?

I don't. I think that we're set
to reach at least $400,000

by the end of this year.

We are now
in 82 stores nationwide,

and we're selling online,

and then we're about
one week away

from launching in 1,061 stores
for Target nationwide.

Wow.

Tracy, I mean, it's
a great business for you,

but it's not something
I get excited about.

Congratulations, but
for those reasons, I'm out.

I think your price point is high
compared to the competition,

the common competition,
which is plastic,

and I think that's an obstacle.

For those reasons, I'm out.

I think your mission
is fantastic.

I think that
to bring on a partner,

it doesn't seem necessary.
You really know your stuff.

You're doing
all the right things.

I don't think that you need
to give away equity.

I'm not gonna give you an offer

because I just don't think
you need it.

I'm out.

Okay, Wall Street Tracy,

I'll make you an offer
in two ways, okay?

$250,000 for 50%,
so we're partners,

or I'll do it for a $1 royalty
in perpetuity with no equity.

Hmm.

Okay, so, I like
the in‐perpetuity idea

with no equity position
very much.

‐Yeah. ‐$1 is a bit steep.

Nope. I'll tell you why.

You see, our interests
will be 100% aligned

if I'm getting a royalty,

even though I don't own
any of the business,

because I'll do everything
in my power to increase sales.

Just to show that, you know,
what my thinking is,

'cause I have other deals
with royalties,

Wicked Good Cupcakes
just paid me

their millionth dollar royalty.

I own no equity. Our interests
are totally aligned.

It's the biggest royalty deal
in "Shark Tank" history,

and if you ask her,
she's very happy.

So, those are my offers.
I've given you two structures.

Pick one. ‐

Yeah, honestly,
I think it's a good offer.

She's out. What are you
listening to her for?

No, I'm saying
it's a good offer!

Can you believe it?
I never say that about you.

I mean, Tracy ‐‐
You got to sell
1/4 million of these.

Put him to work for you
selling ‐‐

You've solved a problem.

I mean, you've solved
a big problem,

and you are helping the earth.

So, thank you for that.

And people love their pets,

and they will spend crazy money
on their pets.

So I think
you're onto something,

but I do think that

Mr. Wonderful's offer
is fantastic.

I think he'd be
a great partner for you.

He's a better Shark for this,
so I'm out.

What do you want to do, Tracy?

‐I'd like to counter. ‐Go ahead.

I do very much like your
in‐perpetuity deal, no equity,

but it's going to put a damper
a little bit also

on my short‐term cash flow.

‐Tracy understands cash flow!
‐She does.

‐I like it. ‐She does.

No, no. I'll tell you
why it won't ‐‐

because I will be
doing two things.

I think I got to
figure out a way

to lower your costs somewhere.

You got to pick one.
I'll do either deal.

Alright, so it's non‐negotiable
if we do ‐‐

Non‐‐ No.

Then I accept.

‐You're taking the royalty deal?
‐Which deal?

‐The royalty deal. ‐Done.

‐Yes. ‐Done.

‐Thank you.
‐Kevin gets the deal!

‐Kevin! ‐Good job, Tracy!

‐Hallelujah. ‐Congratulations.

‐Congrats.
‐I'm very much excited...

‐Thank you.
‐...about working with you,

Wall Street Tracy.

Congratulations, Tracy.
Well done.

‐Congratulations.
‐Thank you very much.

Thank you.

This is a home run for you.

No, I think it's good.

For Kevin to come in right now

at such a critical moment,

but I still am in a position
of protecting 100% of my equity,

and Kevin's also on the book
with me in perpetuity.

Next up is a scientist

who's developed
a healthier way to snack.

Hello, Sharks.

My name is Dr. Juan Salinas,

and I'm the founder and CEO
of Perfect Life Nutrition.

Sharks, I have a PhD
in food science.

For 25 years, I created snacks

with some of the largest food
companies in the United States.

The problem was, none of
the stuff we made was healthy.

We only made stuff
to taste good.

Being that I'm also
a certified sports nutritionist,

I decided to make
something better.

I want to introduce you
to P‐nuff Crunch.

It's the first nutrition‐based
crunchy peanut puff snack.

It's not only delicious,

but it's also
healthy and nutritious.

But, Sharks, why do I care
about that?

'Cause I'm not just a doctor.

I'm also a former
competitive bodybuilder.

Now we're talking.

Now we're talking.
Oh, excuse me!

And I care
what I put in my body.

And so should you.

Oh!

I like this pitch.

Sharks, it's made
from high‐quality

plant‐based protein, healthy
carbohydrate, and fiber.

Now, these components
are essential

for long‐lasting energy
and satisfaction,

but they're also good
for, uh, building muscle...

Cut it out.

Oof! ...and staying fit.

Oh, oh!

If Kevin eats this,
is he gonna look like you?

If I make a deal with Kevin,

I will have you look like this
in three months.

Sharks, I'm seeking $300,000

in exchange for 10% equity
in my company.

Now, who's ready to get fit...

‐Whoa.

Oh.

‐Wow. ‐...and tough...

Oh.

‐...with P‐nuff? ‐Ohh!

Okay, so, try them all, right?

No, before that, I'm gonna
give you $300,000 for 10%.

Oh, my, oh, my.
Okay, let me calm down.

So, you have
three flavors there.

The original is the orange,

which is roasted peanut. Mmm.

The other one's
a roasted peanut and cinnamon,

and then, we have
a roasted peanut and cocoa.

How much sugar is in this stuff?

3 grams in the original,
which is very low.

What's the price
for these at retail,

and what's it cost you to make?

So, retail, we sell
between $3.29 and $3.99,

which is in line with everything
else on the healthy snack area.

‐Okay. ‐It costs $1.70...

‐$1.70 landed?
‐...to the distributor.

It costs me to make 75 cents.

Hello! Okay,
$1.70 to the distributor.

55% margins.

‐75 cents, all in? ‐All in.

Okay, you have 3 grams of fiber,
5 grams of protein.

‐Yes. ‐Calories aren't bad,

130 calories.
So, that's all good.

This is what's so cool
about this product, right?

It's beyond
the healthy snacking.

It goes into
nutritious snacking.

So, the protein is high‐quality
complete protein,

which for a plant‐based product
is very difficult to get.

Juan, did you say you were
a doctor, nutritionalist,

and a bodybuilder?

‐Yes. ‐What's your story?

So, I came here
when I was 16 years old.

I'm from Honduras,

and I came really to realize
the American dream.

I didn't know English.

I flew right into
Newark, New Jersey,

and I wanted to go back home.

I don't blame you.

My dad really instilled into us

that education
was the most important thing,

and that's what I did.

I went to Rutgers University.

I got my degree there
with honors.

Then I got my Master's
in food science

and a PhD in food science.

‐Wow. ‐Wow.

I worked for the largest food
company in the United States,

then I worked for
the second‐largest food company,

and then I became the go‐to guy

because I was combining
chocolates with gels

and puddings and bars
and cereals.

So, you were a formulator?

I'm a formulator.
If you have a food company,

I know how to make your stuff.

To me, this is almost
like a dessert snack.

‐Right. ‐But you're selling this

next to potato chips.

Where is this sitting,

and who are you distributing it
to right now?

Yeah, so, on the shelf,

it actually sits
next to the healthier options.

And we sell through distributors
right now.

We're in 450 stores.

We're actually also overseas.

What do your sales amount to?

That's a wide distribution. Yes.

So, last year, we did $104,000.

Let me tell you
a little bit about ‐‐

That's not that impressive
in the snack category.

It's not. But I started
4 1/2 years ago with this brand.

Now I own
a manufacturing facility,

and there's a reason for that.

The peanuts,
it's a great product,

but my core manufacturers
hate it.

They hate it
because it contaminates

everything else that they make
in the same line.

‐Oh. ‐Right?

Because of the contamination
of peanut oils, right?

Correct. It got to a point

it was like,
"I need to buy my own line,"

because there isn't any company
in the East Coast

that could make this product.

And we didn't get going
until 2019,

and, therefore,
that's why the sales are there.

So, because you got kicked out
of facility after facility,

you decided to open
your own facility?
Yeah, so I decided

to borrow $250,000
from my brothers.

Wow.

And I put in my own line.

So, you put 250K into that?

And $135,000 of my own,
so $375,000 total.

And what's your business
been like year to date?

‐You said you did ‐‐
‐Oh, we're $65,000.

So, what, you've done $65,000
halfway through the year?

Right. COVID‐19 had
a big effect on us.

It sounds like
you're gonna be flat

if you do another $100,000,
$110,000 this year.

$200,000 by the end of the year.

$1.5 million by next year.
‐But it's hard to get excited

about valuing this business
at $3 million,

even though you're
a very credible entrepreneur

in this space.

Plant‐based snacks right now
are a $35 billion business.

I get that.

‐Growing a 9% ‐‐
‐I don't have to tell you,

the snack business
is primarily shelf placement.

And at eye level, you see all
the guys you used to work for.

Yeah, it is brutal.
It is brutal.
They control that space,

and they don't like giving up
shelf space to anybody.

Is there anybody else

who is making a peanut,
plant‐based puff?

We're the only manufacturing
that can make this product.

That's one of the reasons
why I'm here

looking at you guys
as strategic partners.

My strength is not
in marketing or sales.

I don't know.
I think you did a fantastic job

when you came out. ‐

I don't know about ‐‐ Right?

So, I'm gonna tell you
a quick story.

One day, I come home, and
these things are in the pantry.

My wife had bought them.

So, I do what I always do ‐‐
gluten‐free, 130 calories.

I ate the whole frickin' bag.

I loved it.
My wife was so pissed...

Wow.
...because she couldn't find it

anywhere else. Who knew?

I wanted more.
So, I'm gonna make you an offer,

and it's either yes or no.

So, I'll give you the 300K.
I want 25%.

Whew!

I'm gonna change your life.

All Sharks are still in.

Juan is seeking $300,000

for a 10% stake
in P‐nuff Crunch,

a healthy peanut‐based snack.

Mark is offering
$300,000 for 25%.

You just got to
let me know, right?

Because it's gonna be worth
a whole lot more.

Listen, Mark, I know you know

this is gonna be
a $100 million brand

in five, six years.
Right, but not just with you.

Mark, I would love
to work with you.

I know you have other brands
that are just in the same area.

I know I can even help you
with these other brands.

Trust me. I know food.
I know food science.

How about 15%?

No.

No. It's just not worth it.

I got a load of money.

So it's got to be
worth it for me

to grow this
into something special.

And it's gonna take time,
because I'm gonna be the one

out there
going on all the podcasts

and doing the interviews
and mentioning it.

That's the difference.

Will you meet me a little bit
more in the middle?

I'll tell you what.

I'll increase the cash to 400K
for the 25%,

'cause it's got to be
worth my while.

‐Juan, are you crazy? ‐Wow.

I've been working with Mark
for over a decade now,

and I've never seen him
more excited about a product.

What are you waiting for?

That is an amazing offer.

Juan, there's nothing
to think about.

20%, Mark.

Come on.

Let's do this.

Wow.

20%, man.

$400,000 for 25%, Juan.

Ah, Let's do it.

Let's go!

$400,000 for 25%. Yeah!

Wow, that was scary.

‐Good! ‐I'll get naked. Come on.

‐Scary.
‐You don't want to see this.

‐Yeah, yeah, yeah. ‐Oh, my God.

‐I don't want to embarrass him.
‐I love that. I love that.

Congrats, Juan.
We're gonna make a lot of money.
Amazing.

We're gonna make a lot of money.
That's a great deal.

Juan, I'm gonna invite you
to my beach house

to give you my best advice.

‐Thank you, guys.
‐Thank you, Juan.

‐Congrats. ‐Great job.

Yes! Got him.

So, my parents really sacrificed
a lot for me to be here today.

They have given so much for me

just to be here right now.

They sacrificed so much
to send me to school.

It's been 35 years
since I got here,

and finally, you know,

you get to a stage
where you're just like,

everything ‐‐ all the work
and all the sacrifices

are finally working, you know?

They're coming to a point
where you're just like ‐‐

Yes, this is a big milestone.

And there's much to do,
much more.

And they're gonna be so proud.

I can't wait to tell them.

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