Mother Beverage Apple Cider Vinegar – Now Poppi
DEAL
EPISODE SUMMARY
đź•“ Air Date: December 9, 2018
Asking For:
$400,000 for 10%
Investor:
Rohan Oza
Deal:
$400,000 for 25%
PRODUCT SUMMARY
Mother Beverage is an all-natural, sparkling probiotic drink made with organic fruits, herbs, and apple cider vinegar, offering a better-tasting alternative to traditional apple cider vinegar shots.
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Background Story
Mother Beverage, based in Dallas, Texas, was founded by Allison and Stephen Ellsworth, a dynamic duo with a unique journey from the corporate world to the health beverage industry. Both co-founders, with backgrounds in oil and gas, decided to embark on this venture after a significant health revelation.Allison’s personal experience with apple cider vinegar led to the inception of Mother Beverage. Despite the recognized health benefits of apple cider vinegar, the strong and unappealing taste prompted Allison to seek a more palatable alternative. This quest for a better-tasting option became the catalyst for the creation of Mother Beverage.
The couple began their entrepreneurial journey by selling their product at local farmers’ markets, where their commitment to quality and taste caught the attention of buyers, including those from major grocery chains. The transition from oil and gas to the health beverage industry showcases the founders’ determination to address a personal health concern and share the benefits of apple cider vinegar in a more enjoyable form. The journey also reflects their agility in adapting to a new industry, navigating challenges, and securing placements in over 200 locations, including prominent national grocery chains like Albertsons and Whole Foods.
The founders’ decision to venture into the health beverage market aligns with the growing consumer interest in wellness and natural products. Their background in oil and gas, while seemingly unrelated, highlights their versatility and willingness to explore unconventional paths in pursuit of a meaningful and successful business venture. Mother Beverage stands as a testament to the transformative power of personal experiences and the entrepreneurial spirit that can turn challenges into opportunities.
The Product
Mother Beverage presents a revolutionary product in the health beverage industry, offering an all-natural, sparkling probiotic drink that redefines the traditional notion of apple cider vinegar. Packed with organic fruits, herbs, and the crucial ingredient, apple cider vinegar, these beverages provide a refreshing and palatable alternative to the often harsh-tasting shots.
The product lineup includes enticing flavors such as lime ginger, raspberry rose, pineapple turmeric, and blueberry sage. Each bottle contains a carefully measured tablespoon of apple cider vinegar, ensuring that consumers receive the associated health benefits without the overpowering taste. The drinks are not only light and crisp but also low in sugar, with only two to four grams per bottle.
Mother Beverage’s appeal lies in its ability to deliver the health benefits of apple cider vinegar in a convenient and enjoyable format. The founders, Allison and Stephen Ellsworth, have crafted a product that caters to health-conscious consumers seeking a daily dose of apple cider vinegar without compromising on taste.
Available for purchase at a retail price ranging from $2.99 to $3.59, Mother Beverage ensures accessibility without sacrificing quality. The cost-effectiveness, combined with the unique and refreshing taste profile, positions the product as an attractive option for those looking to enhance their well-being through a delightful and convenient beverage
How It Went
The company’s position before Shark Tank
Mother Beverage has demonstrated robust performance since its inception, carving a niche in the competitive health beverage market. With lifetime sales of $500,000 within just 18 months, the company showcases a strong initial market presence. Projecting a significant uptick, Mother Beverage is on track to achieve $1 million in sales for the current year. The founders, Allison and Stephen Ellsworth, have strategically positioned their product in over 200 locations, securing partnerships with major players, including a large national grocery chain, Albertsons, and a presence in Whole Foods within the Dallas-Fort Worth area.
The company’s success is not solely confined to its sales figures. Mother Beverage has established a solid foundation for growth by investing in an automated bottling line, anticipating a production capacity increase to 200,000 bottles per week. While currently manufacturing 60,000 bottles a month, this strategic move positions the company for scalability and efficiency. In terms of funding, Mother Beverage has shown resourcefulness. The founders initially raised $125,000 at a $600,000 valuation, primarily directed towards establishing their production facility. As the company grows, it is likely to attract further investments to support its expansion initiatives. The decision to handle manufacturing in-house reflects a commitment to product quality, keeping the drinks raw and unpasteurized, preserving their health benefits.
Profits and losses have not been explicitly detailed, but the company’s valuation has surged from the initial $600,000 pre-concept valuation to an impressive $4 million. This increase, combined with the projected sales growth, indicates a positive trajectory for Mother Beverage. The founders’ ability to secure partnerships, manage costs effectively, and strategically plan for expansion positions the company for sustained success. Mother Beverage’s current structure involves the founders, Allison and Stephen Ellsworth, who have transitioned into this venture full-time. With their hands-on approach to manufacturing and a commitment to quality, they are actively involved in the day-to-day operations.
The Negotiations:
The negotiations for Mother Beverage on Shark Tank unfolded as a dynamic exchange between the founders, Allison and Stephen Ellsworth, and the sharks, culminating in a strategic deal with entrepreneur Rohan Oza. The pitch began with the Ellsworths seeking a $400,000 investment in exchange for a 10% equity stake in their company. The sharks were intrigued by Mother Beverage’s unique proposition—a palatable, sparkling probiotic drink infused with apple cider vinegar. The founders highlighted their impressive achievements, including lifetime sales of $500,000, placement in over 200 locations, and a projected $1 million in sales for the current year.
Rohan Oza, a seasoned beverage industry expert, recognized the potential of Mother Beverage but expressed concerns about the founders’ decision to handle manufacturing internally. He made a compelling offer of $400,000 for a 25% equity stake, valuing the company at around $1.6 million based on projected annual sales. Despite the higher equity demand, Oza’s offer reflected his confidence in the brand and its growth potential. Other sharks, including Mark Cuban, Lori Greiner, and Bethenny Frankel, voiced concerns about market competition and the founders’ manufacturing strategy. Ultimately, all the sharks, except Oza, opted out of the deal, citing various reservations.
In a pivotal moment, the Ellsworths accepted Rohan Oza’s offer, solidifying a strategic partnership. Oza’s experience and success in building billion-dollar brands in the beverage industry made him an ideal collaborator. The negotiated deal marked a turning point for Mother Beverage, providing not just the funding but also the industry insights and guidance needed to navigate the complexities of the health beverage market. The founders expressed their enthusiasm for the partnership, recognizing Oza as a valuable addition to their entrepreneurial journey. The negotiations showcased the delicate balance between securing investment and finding a partner with the right expertise to propel Mother Beverage to new heights.
