12x05 - Episode 5

[bunniefuu]

Narrator: Tonight on
"Shark t*nk"...

Daniel Lubetzky, the founder of

the groundbreaking
snack company KIND,

returns to the t*nk.

I think you can do something
really, really big.

You're ridiculously impressive.

He just threw you under a bus.

Who's ready to get productive?!

Oh! [ Buzzing ]

Whoo!

I mean, it's just
classical strategy.

So how's that strategy
working for you?

Wow.

What are you talking about?
You need him.

So you're going to come
side to side, okay?

O'Leary:
You're now in the lexicon

of the craziest pitches ever
on "Shark t*nk."

Don't quit your job.

I'm ready.

Then let's do this.

Whoo! [ Laughs ]

♪♪

Narrator: First into the t*nk is
a way to work out like a hero.

♪♪

Hey, Sharks.
My name is Sarah Apgar.

I'm from Baltimore, Maryland,

and I'm the founder and CEO
of FitFighter.

I'm seeking $250,000
for 15% equity in the company.

I'm an Iraq w*r veteran,

women's rugby all-American
from Princeton...

Wow... volunteer firefighter,

spouse of a West Point grad
and fellow Army vet,

and mom
of two gorgeous little girls.

And I invite you to train
like a hero,

like our nation's bravest,
with the most versatile

and durable fitness product
on the market --

the FitFighter Steelhose.

Made in the USA
from real fire hose,

recycled steel sh*t,
and brass grommets,

the Steelhose is both a free
weight and a resistance tool,

with countless grips
on the hose itself --

under, over, mixed grip,
and single arm,

and eight ways to layer
on the body --

at the neck, chest,
elbow, shoulder,

side, hip, back, and ankle.

Wow. [ Laughing ] I know.

The Steelhose system
is a complete, full-body,

strength, power,
and conditioning program.

We can work basic strength
for your everyday mission,

hauling gear and kids,
train for rotational sports,

and, finally, grip strength,

for climbing,
your golf swing, Robert,

or the mayonnaise jar.

[ Chuckles ] [ Chuckles ]

All that
without switching our tool.

And safe for our floors,
toddlers,

and toes. Wow.

Sharks, with your help,
this product and training system

will bring the strength

and spirit of public service

to households, training centers,

and athletic fields nationwide

and turn every American watching

into the next fit fighter.

Wow! Yeah!

Fabulous!

That was amazing! So the question is,
are you ready, too?

Because I need a team,
so it's your turn.

If you'll stand up on your feet
and join me, Sharks.

Awesome.

So you each have a Steelhose
set in front of you.

I recommend my favorite hose, is
the one I worked with, the 15.

The 15. Mark's just bragging.

What are we to do with it?
Oh, look at you, Mark!

Oh! I can't do it over my head,
but I'll try anything else.

Is it okay for me to do
the little one?

Mark's doing 35. Of course, yes.

Why did I know
that was gonna happen?

So what I want you to do is just
stand strong and tall for me,

and I want you
to lift that above your head.

It's gonna feel a little different
than weights you're used to.

Put your arm out to the side.

It does feel different.

All I want you to do is come
down to your shoulder and squat.

As you do that, press everything
back up, okay?

Optional -- You can come down,
up, and over your head...

Oh! ...and get a sense for
how soft and malleable that is.

Oh hoh!

Excellent.
Let's bring it out front.

So you're going
to come side to side, okay?

That one's going to be hard
with the 35, okay?

And then final move, optional,

underhand, and you're going
to just give it a flip.

There you go.

Awesome job, Sharks.
Your first Steelhose moves ever.

Thank you so much.

Love to talk some more.
Oh! Geez! I broke the table!

Did you really? I did.

Lubetzky: Sarah...
Greiner: Oh, Robert.

Why is the experience
so positive?

Because it does feel much more
enjoyable than the weights.

Why is that? Yeah.

That was so hard!

As I mentioned,
it's made from real fire hose,

and the original intent

was to mimic a fire hose
charged with water.

Oh. When I joined my
volunteer fire department,

I noticed there was a gap

between the fitness training
in the gym

and what really happened
out there on the fire ground.

The obvious place to start
was how to mimic charged hose

without pulling hose
off the trucks,

charging it on
the hydrant with water.

Once we had prototyped this
in the firehouse,

I then went to
the FDNY Training Academy,

the premier institution
for training in the world

for firefighters,

and I walked into
the fitness director's office.

I said, "I've got something
special for you to see,"

and there was a moment of magic.

He immediately agreed,
and the FDNY was my first

major client
on our fire service side.

Good for you. Good for you.

I want to understand two things.

One, what did you do
in the m*llitary?

And number two, why did you join
to be a volunteer firefighter?

When I was looking at college,
the ROTC scholarship

was an option
to pay tuition to Princeton.

And so I left college and went
straight into the m*llitary

as a second lieutenant

and, after nine months
of training,

was on a charter aircraft
to Mosul

to support the


reconstruction of northern Iraq.

So I was
a 23-year-old platoon leader,

and my youngest soldier --

I lost my youngest soldier
under my command.

He was 19 at the time.

And I remember that night,

huddling my platoon up around me

and kneeling down in the center,

and I just thought,
"This is the moment.

This is one of the most
important moments of my life,"

that leadership moment
to get us through.

So when I left the service,
I really --

there was something
really powerful about

that community
and camaraderie that I missed.

And I vowed that
I would always work to honor

the memory
of that soldier that I lost.

And so I did my MBA,

and I was also pregnant
with my first baby girl.

And I was feeling, like,
this desire

to have the camaraderie back.

I thought that joining the local
volunteer fire department

would be a great way to just

keep that thread of public
service in my life.

Where did you find time
to spend two years doing an MBA?

So I did my MBA at Tuck School
of Business at Dartmouth.

You are such an underachiever.

[ Laughs ] You do women proud.

How much have you raised?

I launched the company
with $210,000

in friends-and-family funding.

Okay.
And that's 50K of my own money.

Also, importantly, in terms of
the scalability of our business,

I launched
a production partnership

with Sorinex exercise equipment
in May.

Sorinex is one of the largest
and most well respected

exercise-equipment manufacturers
in the country

and has a contract
for the United States Army

to provide the equipment

for the new
Army Combat Fitness Test.

We have the perfect tool
to train soldiers,

so I intend to generate the
enterprise value in this company

by selling institutionally
to the m*llitary,

to the fire service.

Let's get into the business

about what your
distribution strategy is.

We had $45,000 in sales,

proving the concept
in the B2B market.

Cuban: Who did you sell
that to? O'Leary: Last year?

Last year. Trainers, coaches,
and small boutique gyms.

Okay, so you're talking about

a variety
of different markets there.

So your $45,000
was for what period?

That was from July through
the end of 2019.

That's all your sales, all-in.
$45,000.

That was all the sales, all-in.
Correct.

Okay, so here we are in 2020.

So here we are, January 1st.

I was lining up
the Sorinex partnership

so that we could be ready
to scale to the future.

And during this pandemic,

that B2B market was effectively
shut down completely.

Right. We decided, well,

what looks to be the way

that we can scale
the company forward

is to pivot and to build
a direct-to-consumer brand.

What are your sales
since you made that pivot?

We immediately
in April and May timeframe

had $40,000 in sales.

Wow.

In -- So in just those 10 weeks.

That's great.

How did you get those customers?

What were you doing? Videos?
Did you spend digitally?

Did you start trying
different ads on Facebook?

We did. And when we did that,
we launched an iOS app

that has
a 150-plus movement library

that's developed
by my training partners,

who are the best
in the business.

We launched also a live online
training platform program.

Do you charge for the app?
So I'm following you.

I'm watching you.
I'm in my home.

I'm watching my video,
and it's you doing it with me. Yes.

And what do I pay for that?

Right, so the app model is that
it's a free download.

That's free.

Lubetzky: So if
I'm understanding correctly,

the app is designed
to create demand,

and then you want people
to download it for free

so that they can
order these from you.

Right, and then we do have
a $19-a-month option

where you can also then have --

And how many subscribers
do you have for that?

...complete workouts.

We have 302.

So let's walk through,

'cause there's a lot
of bouncing around here.

Yes. Right?

Sorry, I'm trying to kind of
pull it together here.

With COVID, right,

everybody's reacting
and trying to be agile,

so I get that. Yeah.

But, Sarah,
you're all over the map,

and you're not helping yourself
with that.

Okay, you're drowning
in opportunity.

It's hard to be in a business
and do one thing well.

It's harder to be in a business

and try to do multiple things.

You know, one minute, you say
you want to sell to firefighters

and the Department of Defense.

The next minute, you have,
you know, live online

and you're building
your community.

The next second, you want
to work through your trainers,

and everybody's
working this together,

and you want to have
direct-to-consumer.

You can't take on 15 battles

and expect to succeed
in any of them.

Hopefully, you'll get a deal,
because you need help.

♪♪

Narrator:
All Sharks are still in,

but Mark is worried
about Sarah's lack of focus

in her fitness-accessory company
FitFighter.

Cuban: Sarah,
you're all over the map.

You can't take on 15 battles

and expect to succeed
in any of them. Mm-hmm.

Hopefully, you'll get a deal,
because you need help.

Just going on the path
that you're going,

you are going to fail
at this, right?

So for those reasons, I'm out.

Okay.

I'm in this space with PRx.

We had to go through
the same pivot. Yeah.

The digital pivot works. Yeah.

And our sales are up 400%
selling direct to consumers.

But for me, I'm not gonna invest

'cause I'd be competing with
myself in customer acquisition.

I'm out.

Look, you're one of the most
impressive human beings

we've ever seen,

but the business side of it
falls apart a little.

When you came out,
I said, "Oh, my God.

She is k*lling it!

She's selling subscription
classes online."

Mm-hmm.

"And this is nothing.

I'm paying for a subscription."

Mm-hmm. Mm-hmm. But
yet your model seems to be,

"Let's sell a lot of these

and use the subscription
to somehow promote it."

What I've learned
in this industry

is you got to move really fast.

Mm-hmm. And if you
haven't moved online already,

I don't know if you can make
that transition at this point.

I'm out.

-Sarah, listen to me. -Okay.

Everything they said
is actually true.

You're ridiculously impressive.
You need to focus more.

But I think you have
incredible potential.

I think your presentation

can become something
that inspires people.

I think you can do something
really, really big,

and it's gonna take a lot
of work and a lot of focus.

I'm willing to take
that journey with you

because I'm just so inspired
by your story.

So I'm gonna give you
one of two offers,

depending on whether Lori
wants to join me.

Okay.

If she wants to join me,
you get two Sharks,



What would you offer her
if it was just you alone?



Sarah, I'm not gonna join Daniel
on the offer.

I feel that he's a partner

that can bring a lot
to the table for you.

I think it's a better deal
for you.

Okay.

I'm sorry. I'm out.

Okay, so your offer is... So, Sarah,
you have an offer over here.

Okay... 25%...

Focus here... for $250,000.

I think that's
a generous number,

given where you're at
in terms of dollars,

but it's knowing where
you're gonna head. Okay.

Yeah.

I'm super grateful.

So I'd like to counter
at $250,000 for 20%,

and it's a done deal,
and let's go do it.

I respect the toughness
of your counter.

But the answer is no... Yes.

...because I'm already
stretching myself to 25%.

That already factors in...
Stick to your g*ns, Sarah.

...the leadership potential.
Greiner: He'll be a great partner.

Co-captain Daniel Lubetzky!

Whoo! You got it.

Hoo! Hah! Hoh! Awesome!

[ Grunting ]

[ Laughter ]

Thanks, Daniel. I'm so psyched.

Congratulations.

I mean, wow. And great feedback.

Lubetzky: Congratulations.
I can't wait to work with you.

Me too.

Let me just...

Cuban: Yeah. [ Laughter ]

With a partner like Daniel,

we can build a strategy
for the future.

As a woman-owned,
veteran-owned company,

young girls and women
will look up to us,

and they will know
what's possible.

Narrator: In Season 11,
Jenny Goldfarb

made a deal with Mark Cuban

for her vegan version
of deli meat, Unreal Deli.

Mark Cuban,
you got yourself a deal. That's what's up!

Narrator:
Let's see how she's doing now.

Goldfarb: I came onto the show
with only $10,000 in revenues.

In just over half a year,

we reached over $300,000
in sales.

Unreal Deli became
a permanent fixture on the menu

in 175 deli
and restaurant locations,

from Whole Foods Grab and Go
to Veggie Grill

to Mendocino Farms
Sandwich Market.

But when COVID-19 reached
our shores, everything changed.

A couple weeks before
the whole nation shut down,

my dad tested positive
for COVID-19

and was taken to intensive care.

He spent 28 days
on a ventilator,

and doctors told my family

that we should start planning
for the worst.

When we had lost
nearly all hope,

my dad received
a plasma donation,

which started
to turn things around,

and two months later,
he finally came home

and began his slow road
to recovery, a complete miracle.

We were plummeting to zero.

It was a disaster in the making
there for a minute.

Throughout my journey,

Mark has offered unwavering
support and guidance.

Restaurants were hit hard,
and our sales were flatlining.

Mark was the one who realized
we needed to pivot into retail.

We went deep into research
and development

to create our second product,
Unreal Turk'y.

And now we can proudly state


with at least another 300
to come.

Pivoting to retail
saved the business

and made this whole
nightmare story

into something really wonderful.

When your back's
against the wall, that's when

the best entrepreneurs
do their best work.

So I'm really proud of you.

Grandpa's going home.
[ Squeals ]

What this has all meant for me

is that we have to use each day
we're here to make our mark,

help save animals,
help the Earth,

and help folks eat much better,
healthier, delicious food

to really take advantage
of these days,

'cause we don't know
if tomorrow will even come.

♪♪

♪♪

Narrator: Next up
is a technological solution

for optimizing
brain performance.

♪♪

Hi, Sharks. Hi, Sharks.

I'm Allyson. And I'm Ken.

And we're the brains

behind one of the hottest
devices in the world.

We're looking for
a $200,000 investment

for 10% of our company.

Sharks, nowadays, everyone
is searching for ways

to increase productivity,
focus, and performance.

To get a boost,
students, professionals,

video gamers, and athletes

are all consuming too much
caffeine and sugary snacks.

These chemical stimulants
raise the heart rate

and travel
through the entire body,

but only a small bit
of the stimulant

makes its way to the brain.

What if there were a smarter way
to get a similar boost of energy

using a new emerging technology?

Well, now there is.

Introducing LIFTiD
Neurostimulation.

LIFTiD utilizes a process called

transcranial direct current
stimulation, or tDCS.

Our device uses
a mild electric current

that passes through
two electrodes

placed on the upper
forehead area

known as the frontal lobe,

a part of the brain that
when stimulated

has been shown to increase
focus, attention, and memory.

A stimulation session lasts


while a user
is performing a task,

like studying for an exam,
playing a video game,

or reading a book.

Designed by a world-class
neuroscience team,

LIFTiD is easy to use,
lightweight, stylish,

and well-positioned to become
the coffee of the future.

Sharks, who's ready
to get productive...

Get focused...

Both: And get LIFTiD?

Sharks, we would love to do

a LIFTiD stimulation session
with you.

And it's safe? We're not
gonna get electrocuted?

It is so safe.

Okay, so what you have
in front of you

is a kit that has everything
that you will need

to do a LIFTiD
stimulation session.

So if you open the kit and
you'll pull out the device...

This device?
Both: That's the device.

And you turn it over,

you'll see there are
two black electrodes.

And what we're gonna do
is, there are sponges...

Right in front of you that are in a
saline solution. ...right in front of you.

Put them inside your electrodes,
and then you're ready to go.

I'm gonna put this
on Allyson's head.

Okay?

And then what do we do?

Okay, so then you're gonna
put it on your forehead.

This is freaking me out.

You have your sponges in there.

[ Buzzing ]

Alright, I'm gonna hold mine,
okay? It's alive!

Ken: Everybody reach
for the button.

Press that down for two seconds.
Hold it for two seconds.

And you'll hear a beep. -Okay.

-Does everybody hear a beep?
-Yeah.

-Ooh! -I'm beeping.

-Now it's ramping up.
-I am a robot.

-It's ramping up. -Ooh!

-Oh! -And it's 30 seconds.

-It's ramping up. -Whoa!

-I can feel it.
-It's ramping up for 30 seconds.

Whoo!

-I feel like I'm being shocked.
-Get used to it.

That's what tDCS --

It's a little prickly and
tingling. Herjavec: Yes.

I feel it in
my upper teeth, too.

It stings a little bit.

I don't feel that same stimulus,
like, with a coffee or anything.

Like, is it immediate?

So this device, you are supposed
to be doing something

to get your brain working
and focusing on something,

and that's how you improve
your focus.

Cuban: Well, I'm gonna
ramp it down, guys.

How do you know something
won't go wrong?

Well, first of all...
That's a great question.

...tDCS is backed by


They are using it
for Alzheimer's, Parkinson's...

Any evidence it works?
...for epilepsy.

What is it doing
for those things, specifically?

The brain
has billions of neurons,

and in those billions
of neurons, most are dormant.

So when you're doing
a stimulation session

and you're doing, like,
for example, a spreadsheet,

what's happening
is called neuroplasticity.

That means the more you do that,

the more those neurons
are likely to fire

the next time you do it.

Cuban: Wait. All Sharks.

This is a notice to all Sharks.

Warnings for
LIFTiD Neurostimulation.

Read along with me, Sharks.

"Do not use if you have

any electronic
implanted medical device,

a metal plate in the brain,

or had a pacemaker
or defibrillator.

Do not use if you have epilepsy,
seizures, brain lesions,

or severe heart disease.

Do not use if you have
sensitive skin or a rash,

broken skin, or open wounds,

such as sores, cuts,
or pimples." Right.

"Do not use while driving,
drinking, operating machinery,

or any situation
where you may be impaired."

Herjavec: "Has no medical
benefit and is not...

Cuban and Herjavec:
...intended to prevent

or treat any medical condition."

We're not making
any medical claims.

Cuban: I'm not saying
you're making claims. Right.

-But the point is...
-Mark, this is for cognitive --

...if it has no medical benefit,
what's the point?

Mark, you know neuroscience.

This is for cognitive benefit.

It's for focus,
attention, and memory.

Greiner: You're very,
very passionate about this.

-Yes. -It's clear.

Why are you so passionate
about this,

and why did you decide
to do this product?

I've always had an eye
for product.

I was National Salesman
of the Year for Hasbro

at 23 years old.

Also, when I was in college,

I sold solar hats
on the streets of D. C.

I introduced General Mills to
the two-piece spoon in the lid

that was on Colombo yogurt,
if you remember that.

O'Leary: I get it, Ken. I get it. You're a
product guy. Keep it going. Keep on going.

-Let me finish. -But hang on.

You've got a lot of energy,
but I want to go back.

-Kevin, let me tell you.
-Hear me --

I just want to ask a question.

We got best product -- I got
best product of the year.

Ken, you came to the Shark t*nk
for an investment.

You won't let
the investors talk!

I've traveled to every
trade show in the world.

I've gone to Consumer Electronics
for 30 years. Okay, Ken, Ken, Ken.

I'm gonna press that button
on your head in a second.

I have to ask a question, okay?
Please just listen.

Ken, how much
have you sold of this?

We have sold 1,240 pieces.

Since October 1st.
We are here --

-How?
-How much do they sell for?

They're landed for $22
with duty all-in,

and they sell for $149.

So how many dollars
is that, Ken?

$126,000.

Greiner:
Here's the problem for me.

I have never created
or been a part of

or invested in any products

that make claims that have to do
with physical things,

like you'll lose weight,
you'll look better.

I have to feel that
I can show efficacy 100%,

so I steer clear.

So for those reasons, I'm out.

Okay. Thank you.

I accept the fact
that you're a great salesman

'cause you were telling me that.

But I can't justify
the great salesman

with the absolutely horrific
presentation you did today.

But, Robert -- You did nothing
but come out here and talk.

Talk. Right.

And you were like a machine g*n.

Your job is to get me
to share that passion,

and the way to not do that
is just to talk over everybody.

It's difficult. Yes.

The nicest thing I can say
to you today is...

I'm out. Okay.

I do not doubt for one second

that you believe
every single thing you shared.

And it may well be true.

I cannot connect to stuff,
and I cannot invest in stuff

that I cannot connect to.

And for that reason, I'm out.

And I appreciate that.

This is a dream to be here.

We did this,
and we're here today,

and this is a major --

Good for you, Ken. Good for
you. It's a major home run for us.

Ken. Yes?

Silence for one moment. Yes.

I have a headache,
and I don't know

whether it's you
or my session on the LIFTiD.

I believe you're
a great sales guy.

I really do.

And you're very passionate.
That's clear.

But you're now in the lexicon

of the craziest pitches
ever on "Shark t*nk."

I can't join you guys.
But, Kevin, I --

I'm out.

Guys, look, you tried to sell
science without using science.

And for that reason, I'm out.

-Good luck. -We appreciate it.

-Thank you. -Yep.

-Bye-bye. -Bye.

Ken: The Sharks are gonna regret

that they did not
invest in LIFTiD.

It's a multibillion-dollar
category,

and it helps people.

And we've got that device,

and we can't wait to keep
growing this particular brand.

LIFTiD is here to stay.

♪♪

Narrator:
Next into the t*nk is a way

to make any celebration
more festive.

♪♪

Hi, Sharks.
My name is Manuel Rojas.

And I am Grace Rojas.

And we're here asking
for $100,000

for 15% of our
amazing company...

Both: Foam Party Hats!

Whoo! Whoo!

[ Whistle blowing, laughter ]

Whoo!

This amazing idea started
more than 15 years ago

back in Venezuela
at my sister's wedding.

My beautiful, genius,
creative mother...
Thank you.

...decided to make something
fun, something different.

I want to create something
special for my guests,

so I bought some materials

and I start making my first
Foam Party Hats.

Fast-forward to 2017.

We founded Foam Party Hats
here in the U. S.

We have more than 600 models,

all of them handmade
in the U. S.,

and they're 100% customizable.

Sharks, who's ready to get crazy
with Foam Party Hats?

Whoo!

[ Laughs ]

Strong.

[ Cheering ]

Okay, Sharks, wait a second.
Wait a second.

We're a party company,
and we want to celebrate

that this is the first time
I wear pants in a long time.

[ Laughter ]

So if you look behind your seat,

you'll find a box with your own
custom Foam Party Hat.

-Oh. -Oh! Whoa.

Okay, so let's start.
Ladies first.

Lori, the QVC queen. It's cool.

It's a jewelry box!
Yeah, exactly.

So we know you made your first
millions selling jewelry boxes. My gosh.

-Put it on! -[ Laughs ]

Mark, can you guess?

Yeah, stamp collecting
when I was a kid.

Yes. Greiner: Oh, my gosh.

Everybody knows Mr. Wonderful.

Yeah, listen,
that's spectacular.

But not everybody knows you're Chef Wonderful,
right? Greiner: Yeah, it is. So cute.

And your favorite place --
Well, now they do.

Robert, so I truly believe

you're the best-dressed Shark
all the time.

That's why we made
this creation.
Greiner: Aw!

Thank you.
Suit hat tailored just for you.

We heard that you're crazy
about nuts, Daniel.

"I love nuts" hat for you.

Only true nuts can change the world. Yeah,
and you're right.

So, guys, please take the hat
and reach down inside,

and you'll find a little switch.

So there you go. Whoa!

Robert has it.
It gets even better!

I know!

O'Leary: That is tremendous.

Okay, you guys are ready.

Greiner: I have a question.

Do you design all of these
and make all of them?

So she designs everything.

You know, we mentioned
that we have 600 hats.

It's because a lot of the
products that we have created,

because people reach out to us
and ask for custom hats.

So when I go online
to find foam party hats,

am I going to find you at
the top of that list?

Of course. And that's
what drives sales.

Just that keyword has been

what has bring all
the business to us.

They always get big orders.

Average sale is $240.

Oh, wow.

How much is a hat?

So this one is $25.
This one is $40.

How much is this one?
That's expensive.

Manuel: That one is $35.
Lori's is $50.

How much does it cost you
to make a $45 hat?

Cost of product will
be around $2, $3.

And $7 would be the employees.

It's cool that you're able
to customize, but most times,

you want to have one or two
or 10 items

that you can crank out
and just sell a huge amount.

Let me finish explaining
the business model.

So people, you know, weddings
is our biggest market,

like 80% of our sales
to weddings. Weddings?

Grace: Weddings. Weddings, yeah.

The wedding industry,
that I have many companies in,

that business has ground
to a halt since March 17th.

Yeah,
is anybody getting married anymore? No.

So, yeah. So we have changed
our business model

while the pandemic hit.

Basically, our sales decreased
like 80%.

One week, I was sleeping
two, three hours

because I was freaking out.

But one day, I woke up
and I was like,

I hate when people
just stay without

doing nothing
and crying about, like,

"Oh, my God, we're not going
to be able to make it."

Especially, you know,
people dying.

And we had no excuse
to just do nothing.

So I went to Amazon,

started investigating how to be
really proficient on Amazon.

So first month, in March,
we did like $800 worth,

but then I spent many hours

at night figuring out
how to do keyword SEO.

And what were your sales
on Amazon last month?

Last month? $6,000.

Good for you.

When the wedding
business was big,

what were your sales
on a monthly basis?

Okay, so let me just tell
the overall sales.

[ Chuckles ]

So when we started 2017,
we did $25,000 in sales.



And then last year,
we did $145,000 in sales.

This year, right now, we have
sold $8,000 more than last year,

which for me,
I think it's amazing.

-Yeah, it's great.
-Based on the pandemic, right?

Is anything automated
or automatable?

Not right now,
but that's why we're here.

We need the money
to scale up big-, big-time.

What did you do
to get people to you?

Nothing. Greiner: No videos?

What did you do during
the pandemic?

Oh, the pandemic? So I have a --

Let me show
you something real --

I was waiting for this. Give
me a second. [ Chuckles ]

So one thing while
the pandemic hit

is that everything was --

[ Laughter ]

Everything was about social --

That's a great idea. Social distancing,
so I told my mom,

"Let's just make something
that is like a virus,

but let's make it fun so people
don't get offended by it."

How many of those have you sold?

We have sold around


O'Leary: Look, companies that
service parties and weddings

get 80% of their sales
from 20% of their product line.

That's a business model
that works.

But you don't have
that model yet.

It's a great business for you.

It's a family business.
You guys are terrific.

I feel bad about saying I'm out,
but I am.

No, before you say anything --

I just did.

Cuban: Guys, let me step in.

Your biggest challenge here

is you don't know
what business you're in.

You think you're
in the foam hat business,

and you're trying to figure out
how to sell more foam hats.

You're in the fun business.

Correct. Exactly. Right?

You figured out how to sell fun
when you did your virus hats.

You just want to keep on
creating ideas and using SEO

because you can control
your own destiny,

but you don't know
what business you're in yet.

So for those reasons, I'm out.

Manuel, I might be
giving you an offer

based on how you answer
the following questions.

Do you own 100% of the business?



-[ Speaking Spanish ]
-80% for mom?

-Yeah. -Wait.

IY Chihuahua caramba!

Guys, is this
your full-time job?

No, I have a full-time job.
I'm a chemical engineer.

And are you willing to make this
your full-time job?

Of course.
That's why we're here.

Are you sure?
Because the only way

I'll give you an offer
is if you're fully in.

Yes, of course.

Ohh. I don't know about that.

But you're not investing, so --

Yeah, but I'm just trying to
help my friend Manuel.

Herjavec: Let me just tell you
where I'm at.

Sorry, Daniel.
Just to clear things up.

There's two things
I really admire about you guys.

One is the hustle,
and the other one

is your ability
to just make no excuses.

It's a great business for you,
but as an investment,

it's not for me, so I'm out.

Thank you, Robert.
Appreciate it.

Listen, I love you guys.
I love your energy.

There's just a ton of work
to be done.

Like, I calculate
I'm going to be putting

another $200,000
in my team members' time

to just help you guys along.

I don't think you have figured
out how to mass-scale.

At Kind, we mastered Amazon.

We need to deploy
your creativity.

Together,
I think with some guidance,

I think
we will build a huge business.

The offer is $100,000 for 30%.

And it is not negotiable

because it's going
to be, on top of the $100,000,

a ridiculous amount of work.

It's not a bad offer.
Don't quit your job.

Huge mistake, Manuel.

Huh? Huge mistake.

♪♪

Narrator: Three Sharks are out.

Manuel and Grace have an offer
on the table from Daniel --

$100,000 for 30% of
their foam party hat company,

with a caveat that Manuel works
full time on the business.

But Mark strongly disagrees.

Huge mistake, Manuel.

Herjavec: Mark, you're out.
Huge mistake.

I love when these Sharks
have all these comments,

but they will back out.
Let me just tell you,

all the things he wants to do
are going to cost more

than $100,000. Money talks.

Yeah,
what's happening here? BS walks.

Thank you. I'm just telling you,
I don't want to see

an entrepreneur put
in a bad spot.

Hey, listen,
then you write a check.

Mark Cuban forbids
you getting any money here.

Ask for more money.

Listen, what I think
you're missing

is marketing expertise, right?

I want Daniel to have me
join him as a partner.

I'm really good at marketing,

and I'm really good at creating videos. I'm
dying to work with you, Lori, but for this deal,

it's just gonna take
so much focus and attention.

I will help you guys
figure it out.

But I think I need to go
on this one alone.

-You're going alone? -Yes.

He just threw you under a bus.

Mark, you want to go in with me?

[ Laughs ]

Just to mess with Daniel?

Go in with me.

Why don't we do
$100,000 for 25%?

Let's do this. Whoo!

So the way to do this,
Manuel and Grace,

is you do what you did
with the virus hat.

That's where your creativity
comes shining through.

And you combine that with not
just your SEO abilities,

but our SEO abilities, right?

Then you can keep your job.

What are you talking about?

You need him to
figure this stuff out

unless you're going full time...

No, because I understand
how SEO works.

We can figure it out.
He wants to do this.

Oh, man. Loving this.

[ Laughter ]

Grace and Manuel,
you have two offers.

You got to get focused now.

Yeah. You've got Mark,
who came back in

after barking at you
like a dog all day.

Herjavec: Woof! [ Laughter ]

And then you've got Daniel,
who wants to put you full time.

Mark and Lori's offer does not
require you to quit your job.

Manuel,
this is the key question --

what do you want to do with
your life? And it's 5% less.

[ Conversing in Spanish ]

We love you, Daniel. Honestly,
what you're doing is amazing.

But having two Sharks for 25% --

Espere, espere.
Wait a second! Wait a second.

I will do it for 25%. I --

I want to say, at this point,
we're still facing a pandemic,

and I need stability
just in case something happens.

I have a vision.
Sorry, I'm sorry.

I really appreciate it, but this
is a really good offer for us.

Mark and Lori,
thank you so much, guys. Whoo!

We're going to crush this.

Man, oh, my God. Thank you.

Now we'll do our money dance.
[ Vocalizing ]

Yeah!

[ Laughs ] We need a Shark hat.

Yeah!

Whoo!

Thank you, guys.

Yes! Whoo!

Whoo, whoo, whoo!

Get ready, US. Get ready, world.

Come on. Yes. Foam Party Hat!

[ Speaking Spanish ]

Whoo!

You know what's the lesson?
Don't undermine Lori.

When she wants a deal, you need
to go with her or else.

No, don't trust Lori.

Me?! I didn't do anything!

You are vicious.
I asked you to join me,

and you said no!

I respectfully said
I needed to do this one alone.

That's not throwing
under the bus. That's okay.

But I don't have
to sit back and go, "Okay."

♪♪

Narrator: Next up is a modern
version of an ancient beverage.

♪♪

Hi, Sharks.

My name is Ayele Solomon,
and I'm from Sonoma, California.

My company
is the Honey Wine Company,

producers of Bee d'Vine.

I'm seeking $750,000
for 20% of my business.

For centuries,
people from all over

have been enjoying the world's
oldest alcoholic beverage.

It's made from a simple,

sustainable, naturally
sweet ingredient -- honey.

That's right. It's
called honey wine. Hm.

Ethiopia, where I was born,

is the largest honey wine-
drinking country in the world.

Commonly referred to as mead,
I have perfected the formula.

Every sip of Bee d'Vine
helps save our endangered bees

and promotes a permanent change

for thousands
of beekeeping households

and forests around the world.

Ultra smooth and fragrant,
Bee d'Vine is produced

in small batches from just
two ingredients --

raw local honey
and pure spring water.

When you sip Bee d'Vine,
you'll experience the taste

of exotic floral nectars
dancing on your palate.

I love that. Ooh!

I'm ready. Yes.

Alright.
So we start from left to right.

Okay. On the far left is
the Brut non-sparkling.

And I'll join you.

Okay, this is
a "Shark t*nk" tradition.

Herjavec: We have to do this.

All:
To the Chevaliers du Tastevin!

[ Cheering ]

[ Laughs ]

Solomon: So that's the Brut.

Brut is remarkably dry
and complex,

and the oak aging gives it
a nice, mellow vanilla finish.

The next one is a sweet,
non-sparkling,

has mellow tropical fruit
flavors.

Cheers. Chevaliers du Tastevin!

All: Chevaliers du Tastevin!

Wait, let's let Daniel do one.

Okay, go ahead, Daniel. Daniel.

To the Chevaliers du Tastevin!

[ Cheering ]

Now, I just want to
make a quick note

for those who don't know who
the Chevaliers du Tastevin is.

It's a secret wine club
of Burgundian drinkers.

It's not a secret anymore.
Very secret.

Not anymore,
though. This is so sweet! I love it.

Oh, it's so sweet. I love it.
There's something for everybody.

That's the beauty of it. Herjavec:
Almost like tasting pure honey.

Greiner: It's a dessert wine.

We'll finish it off
with the sparkling sweet.

[ Smacks lips ]

Ooh, I like this one.

-Mm! -I like this one.

Cuban: Ooh! It's really good!

I like every single
one of these.

Oh, wow. Thank you.

How much does it cost at retail?

The non-sparkling is $39 retail.

The sparkling is $49.

And how many have you sold?

In six years now,
just over $400,000.

Over six years?

Dollars' worth, six years, yes.

Whew. How many did
you sell last year?

In the last 12 months,
we've sold $115,000.

-Why so little? -Yeah.

Well, it's, one,
by myself doing this.

I had a full-time job for
the first five of the six years.

There wasn't
a huge marketing budget.

We've put in about $600,000

between myself, family,
and some friends.

Wow. Yeah.

Tell us your story.
Why are you doing this?

I was born in Ethiopia.
I grew up in Kenya.

My father was in agriculture
and always in outdoors,

used to grow up going on safari.

Came to the US.

I went on to study
environmental economics

and also have an MBA in finance.

So I was able to put
all these things together

and come out with a product
that would promote my interests

and also address

some of the environmental
and social concerns.

When you came out,
I saw honey wine.

I thought, "Aw,
kind of a shtick." Yeah.

And then I tried it,
and I loved it.

Now I'll buy it.

I'm going to guess
the problem with your product

is people aren't going to buy it
until they try it.

Exactly.
And that's why we got --

Well, I think
there's a bigger problem.

I think it's price,
'cause $39.95,

that's not a price
you would sample new wine at.

Here's a fact.



is sold for under $14 a bottle.



What's your cost
for this bottle?

That's $5.93.

So why are you selling it
so expensively when you can get

to that $14.99 price point?

Because, I mean,
it's just classical strategy.

Either you're small volume,
high margin or --

So how's that strategy
working for you?

It's a long-term play because
this is gonna grow over time.

Greiner: Well, it's something
you could change.

You've got
to have an introductory.

You've got to have a price point
where people can --

No, but, Mark, I think you're
going down the wrong road.

I don't think it matters
what the price is.

And yes, 97% are sold to that.
Greiner: I do. I think it matters a lot.

A Sauvignon blanc costs $35.

The problem here
is people need to try it.

Well, that's my point, Robert.

Mark is right on the money.

It's that sweet spot
of being under $15, right?

-Yeah.
-And if it's not what you like,

you haven't really
lost that much. Exactly.

I like all wines,
and I appreciate the mastery

of what you've made here,
but two big issues here.

One is getting trial.
I think Robert brought that up.

Breaching the $14
price point is very hard.

Very hard.

-Well, I mean,
lowering the price

is not going to
get people to buy more.

We've experimented with that,
and it's not sustainable.

I'm not sure about that.
That's 97% of the market.

Let's focus on the issue
of valuation.

You have to ship


How many cases are you shipping?

Yeah.

Well, I was doing about




You know what?
I'm a product person.

I've done wine deals.

I'm not Kevin,

but I'm not snobby
about wines, frankly.

Tastes good. Looks good.

First white wine I've liked,
and I like all four.

It's like drinking a soda.

It's kind of like
a dream come true.

-Thank you. -I loved it.

And you're saving the bees.

So to me, I feel like
it doesn't really matter

the things that
you were just saying,

because at the end of the day
-- What are you talking about?

This is a hobby.
It's not a hobby!

And let me tell you something.

I have talked
with my fellow Sharks.

Here's the bottom line.

We're going to
make you an offer.

Herjavec: Yes.
And the offer is this.

You're going to get
four Sharks --

Mark, Daniel,
myself, and Robert.

Okay. So we're going
to make you an offer.

$750,000, but we want 40%,


Cuban: For each Shark.

We will help you.

You need the trajectory

of the publicity,
the sales, the recognizability.

Do you know how rare it is
that you get four Sharks?

I don't want Kevin to be left
out, and I want him --

Kevin does not want to be in.

We are very comfortable
without Kevin.

I can't do it. I have
very complex contracts.

Solomon: Yeah, I know --
Kevin O'Leary Wines.

Look, there's two things.
One, this is non-negotiable,

'cause this is the only way
we're going to get four in.

So you're going to have to say
yes to the 40%.

There's no negotiating.

And two, the second goal is,

other than
the environmental issues,

we're going to destroy
O'Leary Wines.

[ Laughter ] We're just
going to blow them away.

And whatever he's going to sell,
we're going to sell four times

as much
'cause there are four Sharks.

I don't want to put any business
out of business.

You're gonna get an education.
I just want you to do great.

Here's my counter.

-No. No.
-Listen, listen, listen.

-No, no, no. -Nope.

Please understand,
your numbers make no sense.

You asked for $750,000.

We're doing this because we're
believing in the long term

and because of what Lori
explained.

And because the value
of four of us working together.

This is non-negotiable, Ayele.
This is a yes or no.

If I were you, I wouldn't
even think about that.

You're, like...

♪♪

Then let's do this.

Yes, sir!

[ Cheering ]

To Bee d'Vine honey wine!

We can do a little
Ethiopian dance.

♪♪

What he did. Uh-huh. Okay.
Greiner: Is that it?

I like to Pee-Wee Herman
victory dance.

O'Leary: What is this?

Is this what happens
when you drink mead?

Oh, you guys are going
to lose money.

Congrats, Ayele.
Alright. Thank you.

Congrats.

Unbelievable. I made a deal
with all four Sharks.

This is huge.

I mean, I never thought
I would come out there

and, without even
much negotiation,

all four Sharks just jumped
in the water.

♪♪

♪♪