Sharks Discover Recipe Rights AFTER Offering Investment! | Shark Tank AUS

First into the

tank

tonight is a young man from Sydney with a tasty solution to a dietary problem. I am incredibly proud of my business and so I am very confident that the

shark

s will stand firm. Hello, my name is Alex Houseman, I am the founder. from over the MU coconut milk ice cream from 28 and I'm from Sydney. I am looking for an

investment

of two hundred and fifty thousand dollars in exchange for 8% of the capital stock of the business. Now it looks like you've all had a long day. and you might need something sweet, so why don't you come over to the van and my lovely Pooh marketing bar will serve you some iced cookies with coconut milk today.

Doctor's choice, thank you, when can I go? And of course, that's pretty cool. I have a candy enjoy wonderful thank you yes thank you welcome enjoy omg omg thank you so much Eleanor our marketing poobah. We have developed a product that is dairy and gluten free. It's hugely vegan, but the bottom line is. The element I hope you can attest to is that it tastes absolutely delicious. Alex, she can say pretty much anything you want. I mean, that's good to hear. It's good to hear. Yes, I first came up with the idea at MU about two years ago.

I was sitting on the couch and watching Game of Thrones with my girlfriend, she was eating ice cream fresh out of the bathtub and having a great time just like you are doing right now. I, on the other hand, have nothing. I'm lactose intolerant and so on. When it comes to enjoying ice cream on the couch, I'm left out, so considering the Australian ice cream industry racked up $1.1 billion in sales last year, I knew there was a business opportunity here, so 20 months ago got my first batch of stock from my manufacturer I loaded up my parents car and went to knock on the door thanks Steve well done more should do that well done well done Alan it's been a trip in a month I had 15 stockers food now we're just shy of 300 independent grocers in every state in Australia lactose intolerance is officially the most common food intolerance in Australia sales of milk alternatives in Australia last year amounted to $157 million and six per cent growth the business proposition that I present to you today and the commercial proposal of more than MU dairy-free coconut milk ice cream is to sell our wonderful ice cream to the same people who are already buying soy and almond milk but we cannot do it alone and that is why I am here and here It's where the Sharks come.

Thanks for your time, great, this is good, yes, very good, this is very good Alex, that's 250,000 times 8 percent, so you're valuing your business between 3.1 and 5 million. Right, well, if you don't run a business before, I don't know, so tell him. Tell us how difficult the first year in business has been. I don't think anyone who hasn't started a business doesn't realize the effort, the hours, the pain that you go through and even the second year in business, now you're not. You absolutely tell us, so the first thing I did was move home, so yeah, my parents, I'm sorry, I feel a little emotional here, my parents had been very supportive of me, I'm sorry, I don't know why I'm getting so emotional. with this, but it's been a journey Joe, that's embarrassing, it's not really like that, we've all been there, sorry, yeah, just a little, it's all coming up.

I guess it's a very lonely journey, but I kept going because I believed and everything and um, yeah, it really is a problem, that was hard. but to admit that it is something very, very, very positive hmm, I appreciate the face, so now I probably have to get into the hard facts, yes, I really want to get a little more excited and somehow relate it to the immense evaluation you put on this business, yes, of course, yes. so we are already the market leader in the coconut milk ice cream segment. I will approach the calls last year.

I assume that the sales processes began since February of this year. We have been testing and selecting Woolworths stores and they would like to include us in five. one hundred fifty stores Wow, our projections for calendar seventeen are total sales of 1.8 million and what would be your profit with the net profit of one point eight million three point five percent, which is about seventy thousand seven zero thousand, Yes, within three years we are now looking at generating over three million dollars, which will result in a profit of five hundred thousand dollars. The problem right now is that your net earnings are scheduled to be seventy thousand dollars and you have come here with a valuation of over three million dollars.

So in every estimate, that's pretty adventurous, in theory, with the embers on board and also with an export wing, you think you're going to go from one point eight to three million dollars and the revenue is that, what you're saying, yes. Within five years we are looking to expand the product line, so going beyond ice cream, anything that is currently dairy-free can be replicated as a dairy-free alternative. The ice cream category, as you know, is huge. What has been done. it's creating your own categories in a big category which is great but the valuation is really correct because really Woolworths and Coles change their mind all the time, it's part of their business so you might be there but If you don't, sell a minimum of five six seven products per store.

You're fine, but the product was great. I like you a lot and I think you have that determination that I really look for in a partner, so I will make you an offer. But since you have asked for $250,000, the offer I am going to give you is: I will give you two hundred and fifty thousand for 49%. make up the state I hit for looking if you have sent yourself the numbers incorrectly, but because the numbers are correct, this man is a good deal, Steve, I can tell you Janine's math, which I really agree with and I think You're being a little generous, the numbers I've done are pretty reasonable, but you didn't taste the candy, did you identify them and hide them?

If you taste the candy, you pee well, so here, you read to open it. Well, I really appreciate the offer, engineer. it's a it's too low Oh Alex I'll make you an offer okay $250,000 for 25% us 5% is pretty strong no pond scum taste my offer I'm not a bottom feeder you can't add then give them a cake then another bottom feeder so while they think about that you earn the

recipe

just when the

shark

s tried Alex's delicious lactose free coconut milk ice cream they started spinning I mean I'll give you 250k for 49% it's so low, it's Well Alex, I'll make you an offer of two hundred and fifty thousand dollars for 25%, but Steve may have bitten too soon.

Do you learn the

recipe

well? I know perfectly. I have exclusivity with my manufacturer for all of our formulations in perpetuity, but you can't take that recipe and take it to a factory overseas and supply to Ben and Jerry's in the US, for example, Kenya, no, okay, it's okay, let's understand what you're talking about here so you have a There's a big business here, a big growing business, someone else owns intellectual property. How secure is your supply contract? There is a set price. There is a price every six months. What's really going on there? We have a price change every six months and do they come to fix the price or would you fix the price, so when you actually make three million dollars in the calendar year, no matter what happens, wow, it's a big deal, guess what prices? they go up 20%, what happens, then it happens, we would have to move.

Okay, Alex, I'm withdrawing my offer. Well, I should have asked that question. Thanks Andy, could you use a new set of serious advice because you need to own or have massive control over your intellectual property or pricing? that the owner provides without that property, okay, I'm leaving Ohama, I won't be involved in this anymore Alex, you're okay, I'm out of luck, this is an

investment

for me, I think to get you where you need to go, Alex, you. I need a million dollars or more. Sorry, I'm out. Thank you very much Andrew. I love your brand and I think you are on your entrepreneurial journey, but I feel a vulnerability because of your offer, which is why I am out.

Thank you very much, it's a pleasure, so four sharks are out, only one shark left. I'll make you an offer. Yes, okay son, I want to go on a trip with you, but I have a price for the risk of this problem around your IP 250,000. for 40% of their business, like I said on the moon, I think it's the best tasting ice cream in Australia. We agree that we are the market leader. We really appreciate your offer. Glen based on the evaluation. I can't accept your offer. Do you have a counteroffer? That's how business works, you know there's a counteroffer, any counteroffer I can make, it's too far for Glen to jump, you came for a percentage, it's too far away from forty percent, but I mean, what would your counteroffer be if would you make one?

It would be two hundred fifty thousand four fifteen and fifteen percent, so that's the highest you can go. Are you ready? Glen, you're ready to write the check. We are still in very separate positions. In fact, it's not even the same house now. We're not on the same street, we might be in the same suburbs, that's it, sorry, right, I can't, I can't counter, okay, good luck, thanks for your time guys and a great product. See you, see a beautiful little thing. I love ice. cream I hate the feedback I love the ice cream I hate the feedback wow that was an emotional rollercoaster there absolutely yes, exciting and really flattering and you know, great, great to get a really unfortunate offer, we couldn't expect that they weren't sharing the same vision every Every time I see this product in Woolies or Cole's, okay, what could it have been?

I am looking for businesses that we can expand. I have to understand the industry they operate in because then I believe I can add value. and I love helping companies grow and develop so that they compete in the industry in which they play.