Sweetkiwi – Whipped Greek Yogurt
DEAL
EPISODE SUMMARY
🕓 Air Date: March 10, 2023
Asking For:
$250,000 for 5%
Investor:
Robert Herjavec
Deal:
$250,000 for 16%
PRODUCT SUMMARY
Sweetkiwi offers real Greek yogurt whipped to frozen perfection, a delicious and low-calorie frozen dessert with health benefits
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Background Story
Ehime and Michael, a married couple, and business partners, founded Sweetkiwi. Ehime, originally from Nigeria, moved to Dallas, Texas, where she was diagnosed with a uterine fibroid at a young age. This health scare led her to explore healthier dietary options. She found that while she was improving her diet, she struggled to find a healthy dessert option.
Frozen yogurt was an option, but it contained too much sugar. So, Ehime started making her own frozen Greek yogurt in her kitchen. She honed her skills by taking courses in culture dairies and ice cream manufacturing at Penn State. Sweetkiwi eventually expanded into Nigeria and became one of the largest frozen yogurt companies in Africa. They transitioned their focus to the American market and secured partnerships with major retailers like Whole Foods, Walmart, and Kroger.
The Product
Sweetkiwi’s frozen yogurt is made from real milk sourced from smallholder, family-owned farms and contains 22 grams of protein, prebiotic fiber, gut-healthy probiotics, and a unique blend of immunity-boosting superfoods.
The product is available in six flavors, including Vanilla Bean, Cookies & Cream, Chocolate Hazelnut, Raspberry Frozé, Hibiscus & Ginger, and Mango Mojito. Each pint contains 35 to 40 grams of total sugars, making it a healthier dessert option. The product is priced between $4.97 and $6.99 at retail, competitive with other frozen desserts on the market.
Sweetkiwi is sold in around 1,700 stores, including Whole Foods, Walmart, and Kroger. They have already achieved $650,000 in sales in the current year, with a projected revenue of $1.2 million to $1.4 million by year-end.
How It Went
The company’s position before Shark Tank
Sweetkiwi has grown from a home kitchen experiment to a significant player in the frozen dessert market. Their lifetime revenue is $2 million, and they have secured deals with major retailers like Whole Foods, Walmart, and Kroger. They’ve reached approximately 1,700 stores with their product. The company’s main focus is on building the American business, and their current year’s sales are already at $650,000 with a projected increase from $1.2 million to $1.4 million by the end of the year.
Sweetkiwi is cash flow positive and not seeking outside capital to be profitable. Their cost of goods sold is approximately $2.25, with a goal to reduce it to $2.20 as they scale. The founders highlight that marketing is their main challenge, and they’ve employed strategies like demos and promotions. Their product has received press coverage, including being featured on CNN.
The Negotiations:
The Sharks showed initial interest in Sweetkiwi but raised concerns about the competitive nature of the frozen dessert market and the need for a strong marketing plan. They also inquired about the cost of goods sold. Robert Herjavec offered $250,000 for 20% equity, while Kevin O’Leary made a similar offer with 20% equity. Ultimately, Robert Herjavec’s offer was accepted, with Sweetkiwi receiving $250,000 for 16% equity and 5% advisory shares.
