This entrepreneurial mother believes that kids are just eating too much damned sugar these days! Even juice has an amount of sugar that would surprise you. In fact, says this entrepreneur, if one were to give her kids a glass of juice per day for a whole day, it would equal the twenty-five pounds of surgar she poured over her children.
To help keep kids away from sugar, this entrepreneur created KidsLuv, a drink created with no added sugars but twelve "essential" vitamins and minerals. And, if she is to be believed, both kids and parents love it!
KidsLuv comes in two flavors: mango and coconut. But it is sweet though this entrepreneur claims it's a trade secret. However, when Mark pushes about the use of stevia as a sweetener, the entrepreneur does admit that less than 0.1 grams of stevia is used. Mark claims he can taste it. But the entrepreneur says that it's necessary to counter the taste of all the vitamins.
The entrepreneur originally started trying to formulate the drink in her own kitchen but then began to work with a professional formulator. Even still, it took a year to develop. There are two more flavors that are ready to go. The entrepreneur says that she invested between $150,000 and $200,000 of her own money into the product. But the sharks are unhappy with the range and push for a more specific number that the entrepreneur says is "closer to $200,000." Additionally, she has raised $1,000,000 in a friends and family round on a convertible note valuing the company at $3,500,000.
Currently, KidsLuv is sold in independent grocery stores and is shelf-stable for up to one year. Sales since February 2018 have been $55,000. Especially since the product has been on the market now for three years. But, supposedly, the company is in talks with a big box retailer for a test placement.
Unfortunately, KidsLuv only has $50,000 left in the bank. $950,000 was spent launching the product and included things like regulatory costs, national and international licensing set up, and intellectual property protections such as trademarks. Only $50,000 went to actually manufacture the drink. The entreprneur states that she is trying to raise more money from her original investors.
Barbara expresses extreme disappointment with all the money the entrepreneur spent on things that didn't have anything to do with the product. In fact, she was so disenchanted that she said she wanted to see all the other sharks follower her out of the deal.
Mark says that the entrepreneur hasn't really done the hard work of testing out the product. She hasn't tried to sell it door to door to see what people like and he says that marketing isn't sales. And since she's not doing enough sales herself, it's not for him. Kevin just says there aren't enough sales to know whether it's successful.
Robert respects that the entrepreneur can and will defend herself from the sharks but also says that cash is the lifeblood of any business. And, unfortunately, this entrepreneur has spent through all of her cash. And quickly, too, which does not impress him.
Finally, Lori says that she's been through the process of trying to over-protect a product without knowing if it would sell well. And, because she must be seeing the same mistakes here, she says she's out.