Granola Butter by Oat Haus
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 22, 2021
Asking For:
$375,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Oat Haus offers Granola Butter, the world's first oat-based spread that combines the texture of nut butter with the taste of granola, gluten-free, vegan, and nut-free.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
The genesis of Oat Haus in the heart of Philadelphia, Pennsylvania, is deeply rooted in a personal journey of resilience and culinary innovation. The visionary team behind Oat Haus comprises Ali, Eric, and Ari, whose collective experiences shape the company’s core values and mission. Ali’s battle with an eating disorder became the catalyst for their groundbreaking creation, Granola Butter.
Struggling to reintroduce foods like peanut butter and almond butter into her diet due to fears and dietary restrictions, Ali was determined to find a satisfying nut-free alternative. It was within the confines of her modest kitchen that the concept of an oat-based spread began to take shape. Ari’s culinary prowess played a pivotal role in bringing Ali’s vision to life. Together, they developed Granola Butter, a unique spread that combines the rich texture of nut butter with the delightful taste of granola.
This innovative product isn’t just about satisfying cravings; it’s a celebration of self-love and food freedom. Oat Haus’s mission extends beyond culinary innovation. They aspire to reignite the joy of eating, particularly for individuals facing dietary constraints. Through their journey, they aim to inspire others to embrace a healthier relationship with food while relishing the pleasures of a delicious and inclusive spread.
The Product
Granola Butter is a culinary marvel crafted from a harmonious blend of wholesome ingredients. Comprising oats, flax, olive oil, maple syrup, and an exquisite array of spices, this spread is nothing short of a sensory delight. Its most remarkable feature is the striking resemblance to traditional nut butter in texture, granting it unparalleled versatility in the kitchen.
This innovative creation beckons to be savored in countless ways. Whether generously spread over a velvety bed of yogurt, generously slathered on warm toast, seamlessly blended into refreshing smoothies, or simply enjoyed by the spoonful, Granola Butter effortlessly elevates any culinary experience.
What truly sets Granola Butter apart is its unwavering commitment to inclusivity. It is a testament to the fact that extraordinary taste can be enjoyed by all, regardless of dietary preferences or restrictions. Vegans, celiacs, and those with nut allergies can indulge without hesitation, relishing the exceptional flavors and nourishing benefits.
Moreover, the slightly more spreadable and drizzly consistency adds a touch of creativity to every dish it graces. From enhancing breakfast classics to transforming desserts and snacks, Granola Butter is a culinary chameleon, offering endless possibilities to those seeking both flavor and dietary inclusivity in their food choices.
How It Went
The company’s position before Shark Tank
Oat Haus’s journey since its inception in March 2018 has been nothing short of impressive. Their performance reflects their dedication and the widespread appeal of Granola Butter. Over the years, they have achieved remarkable growth, with lifetime sales soaring to an impressive $2.7 million. What’s even more astonishing is the consistent year-on-year increase in revenue, demonstrating the product’s enduring popularity.
In the current year, Oat Haus is poised to continue its upward trajectory, projecting sales of approximately $2.5 million. What sets them apart in the competitive market is their astute financial management, as they have achieved these substantial figures with a marketing expenditure of less than 5% of their gross revenue. This efficient use of resources underscores their commitment to sustainable growth.
The journey began with the founders’ own investment, as they bootstrapped the business with $100,000 of their hard-earned money. Their resourcefulness and dedication attracted further support, as they successfully raised an additional $600,000 through a convertible note. Notably, their initial valuation started at a $5 million cap, with contributions from both friends and family, as well as founders with a track record of successful ventures in the industry. Oat Haus’s impressive financial performance, prudent management, and growing consumer base position them as a standout player in the industry, poised for continued success and expansion.
The Negotiations:
The negotiation phase of Oat Haus’s pitch on “Shark Tank” was filled with anticipation, but ultimately, no deal was secured. The Sharks expressed genuine interest in the product’s taste, branding, and market potential. However, they raised critical concerns that led to their decisions not to invest. Mark Cuban, an experienced investor, appreciated the product but expressed doubts about its differentiation in the highly competitive food industry.
Lori Greiner praised the smell and taste but couldn’t see how she could add value to the business, prompting her to opt out. Kevin O’Leary shared concerns about the product’s consistency, stating that he didn’t like it, which led to his decision to decline. Daymond John, known for his expertise in food deals, appreciated the branding and product name but ultimately couldn’t find a compelling reason to invest. The negotiation took an unexpected turn when Daniel Lubetzky, the founder of KIND Snacks, raised concerns about the founders’ focus on investor exits rather than their passion for the product.
While he expressed interest in buying the product for personal use, he didn’t make an offer. In the end, despite the Sharks’ positive remarks about the product itself, Oat Haus left the tank without securing an investment. While they didn’t secure a deal on the show, their impressive journey and innovative product continue to resonate with consumers, positioning them for success in the competitive food industry.
