Coconut Girl
Coconut Girl is a healthier version of ice cream. Because, after all, who doesn't like being at the beach and eating ice cream?
But, since ice cream doesn't exactly help keep a body in swimsuit condition, the entrepreneur created Coconut Girl ice cream, a dairy free, gluten free, "nice cream" sandwich. This, she claims is an all natural alternative made with coconut milk, honey, dates, and "paleo ice cream" (whatever that is). The cookie portion is made from almond butter.
Coconut Girl has the usual flavors like chocolate and vanilla but the main focus is on "good for you ingredients" and this is how each sandwich only has 250 calores. She also claims that because of these "real ingredients" a single sandwich will fill someone up.
The idea for Coconut Girl sandwhiches came from seeing people making ice cream sandwiches out of the original pints she sold her "nice cream" product in. The company used to have a co-packer but is currently producing all Coconut Girl products in house.
The year in which the deal was filmed was the third year that Coconut Girl was in retail. In the first year, Coconut Girl realized just $60,000 in sales. The next year saw $120,000. And the current year expects to see $300,000 in sales by the end of year. Coconut Girl products can currently be found in several stores in Southern California, the biggest of which is Whole Foods where it's in thirty locations. Coconut Girl has also recently been picked up by the "largest food distributor" which will no doubt help things. In fact, all of her sales are retail as none of her products are sold online.
One Coconut Girl sandwich costs $1 to produce and retails for between $4.99 and $5.49. She believes that with the investment money she's asking for, she can lower the cost to just $0.50 per item. She also wants money to put toward a sales and marketing budget. She also has dreams of expanding to Hawaii, Nevada, and Arizona.
Making A Deal
Mark kicks things off by doing one of his usual, "here's my offer, but you have to say 'yes' right away" things. In this case he offers $180,000 in exchange for a 25% equity position in the company. And he doesn't react well when the entrepreneur says that she wants to respect Lori and hear her offer. He drops out.
Then he comes back in, saying he'll give her one more shot. She asks if he would be willing to lower his equity ask.
Kevin manages to sneak in an offer of just 20%. But Mark instantly matches it and the entrepreneur agrees to go with him.
All in all, it worked out pretty good for the Coconut Girl. She gave up just 2% more than she'd intended to when coming into the tank which restuled in a bite of just $100,000 from the value she came in with. Plus, she left with Mark Cuban as a partner, so... a good day's work.