KidsLuv – Vitamin Enhanced Drinks
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 13, 2020
Asking For:
$200,000 for 8%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
KidsLuv is a zero-sugar functional drink for kids with certified vegan vitamins and hydration, offering a healthier alternative to traditional sugary juices.
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Background Story
Ashi Jelinek, the founder of KidsLuv, was motivated by her desire to provide a healthier option for her own children. Frustrated with the high sugar content in most kids’ drinks, she embarked on the journey to create a beverage that would be both nutritious and appealing to children. Ashi’s background was initially in the hotel business, making the shift to beverage creation a significant departure from her previous career.
In the process of developing KidsLuv, she faced challenges in formulating the product, and spending time in her kitchen experimenting with ingredients. Eventually, she enlisted the help of a formulator to create a drink with vegan vitamins, hydration, and, notably, zero sugar. The product, now available in two flavors, Flying Fla-mango, and Starstruck Coconut, is positioned as a solution to the health concerns associated with high-sugar beverages for kids.
The Product
KidsLuv is a revolutionary drink designed specifically for children, addressing the common issue of excessive sugar in kids’ beverages. The two current flavors, Flying Fla-mango and Starstruck Coconut boast a unique selling proposition of being completely sugar-free.
The sweetness is achieved through a proprietary blend, including coconut water, juice, a touch of regular water, and less than 0.1 grams of stevia. Notably, the product also contains all 12 essential vitamins, certified as vegan, providing a nutritional boost for young consumers.
The use of Tetra Pak ensures the drink’s shelf stability for up to a year, allowing for convenient storage and distribution. KidsLuv is currently available in independent grocery stores in California, with an emphasis on expanding its presence on the West Coast before considering a broader market approach.
The founder highlights ongoing talks with a national retailer for a potential test run. The product has received positive feedback from some online platforms, such as Thrive Market, where reorders have been consistent.
How It Went
The company’s position before Shark Tank
Since its inception in February 2018, KidsLuv has generated $55,000 in sales. The founder revealed that she raised $1 million through a family-and-friends round of financing on a $3.5 million convertible note. While the product has faced challenges in terms of high initial spending, particularly on international licensing and intellectual property, it has also secured trademarks for the brand name “KidsLuv” and the parent company, “The Luving Company.”
The founder acknowledges that some financial decisions, such as spending $150,000 on regulatory matters, contributed to the current financial situation. With $50,000 left in the bank, the company is at a critical juncture, seeking additional funding for manufacturing runs, expansion, and market penetration.
The Negotiations:
The Sharks expressed concerns about the substantial amount of money spent, the lack of significant sales, and the need for more sell-through data. They questioned the founder’s understanding of financial details and her plans for market expansion. Despite positive feedback on the product itself, the Sharks ultimately expressed reservations about the financial health of the business. One by one, they opted out of making a deal with KidsLuv.
The founder defended her strategy, emphasizing ongoing grassroots marketing efforts and her commitment to personally selling the product. However, the Sharks remained unconvinced, citing the significant investment and lack of clear sell-through data. The founder left the Tank without securing a deal, with the Sharks expressing concerns about the financial viability of KidsLuv and the decision-making process that led to the current state of the business.
