PRO-NRG on Shark Tank
We'll this episode of the Shark Tank did not disappoint with lots of twists and and unexpected turns. It looks like our predictions didn't do as we'll this episode either with Mark Cuban again not being too understanding with some of the contestants. This show however, he had good reason to get upset a few times, which could serve as a good lesson for any future contestants.
PRO-NRG Gets "Shark Tank Biggest Deal Of The Night Award"We'll our predictions may be a
little low this week but we sure got this one right. Tania Patruno & Brandon Jacobs entered the Shark Tank almost a little to relaxed. Tania was asking for $250k in exchange for 15% of PRO-NRG (Pro Energy Drink). She knows this market very we'll and has designed this energy drink with no sugar or caffeine. Patruno is also quite the hustler and already has managed to get into over 3000 stores in the New York area. She has Brandon Jacobs hand out a bottle of Pro-NRG to all the Sharks to taste. Robert immediately gets a sour look on his face and asks "Why does it taste so bad"? Brandon starts rocking back and forth looking like he's getting ready to tackle a Shark. Tania is a little stunned by his reaction. Mark Cuban says "I don't think it tastes bad at all". Robert admits he has not tried any of the protein products for athletes on the market.
Kevin O'Leary wants to know if he can catch a buzz off this energy drink. It's not a go fast drink, it's not like GatorAid, it's in a new class all it's own. Pro-NRG helps replenish your body after a work out. Ah, now we know why Robert didn't like it. Cuban goes into a sales pitch that you'd think he was the one selling this product. Daymond John offers Brandon Jacobs a deal right now if he busts Kevin O'Leary a good one.
The Sharks want to know why they need the money so bad. Patruno admits that Brandon Jacobs is basically a paid endorser and not part of the company and he doesn't come cheap. They ask him why he is not an investor? He simply answers "Because I am an endorser". Why is he such a big fan of Pro-NRG ? He claims they had the drink during the Super Bowl run with the New York Giants. All the players loved it. Was that the tipping point to win the Superbowl? Brandon wisely plays that down but hints it might of helped. Daymon John likes his honesty.
Mark Cuban is the first to start talking about the business aspects. Tania Patruno has invested $75k of her own money. Each bottle of PRONRG currently costs $1.10 to make but will be reduced in cost as quantities go up. She sells them wholesale for $1.80 leaving a 70 cent profit for each bottle sold. PRO NRG retails in the stores for $3.99. All the Sharks are wondering why the distributors are making more money off the product then she is? Brandon says "everyone has to pay their dues in what ever business they are in". O'Leary responds "your not worried about it because your on the PnL side of it and taking it off the top, I as an investor would be very concerned about those margins".
PRO-NRG has been on the market for only 3 months (when this show was taped) and has already done $126k in sales. O'Leary doesn't think the valuation of such a new product is worth $1.7 million. He's Out! Mark Cuban goes on and on how great this product and marketing is, but does not want to invest in it. Barbara Corcoran has a big problem with why it's so hard to know exactly what this product is actually used for. She grabs a bottle of PRO-NRG and looks at the labeling to confirm it. She then goes into their whole presentation and how it could of been more effective. Robert finally gets the brand name and says "OH Pro Energy". NRG- get it?
Robert then goes into how amazed he is that Patruno has got that much distribution in such a short amount of time. 3000 stores in 3 months time is really an amazing feat for any new product. An average of 33 new outlets each and every day for the first 90 days since they started.
Daymond John already has interest in some cross businesses and starts acting interested in making a deal when he is interrupted by O'Leary by saying "I forbid you to pay $1.7 million for that". Daymond makes an offer for the $250k but he wants 30% of the business. It's also contingent on a protein supplement company that he already has a partnership with (BadASS) that they will include the PRO-NRG brand. John also insists that Brandon needs to be at the meeting telling them about his Superbowl story.
Tania Patruno & Brandon Jacobs got the Best Shark Tank Deal of the night with Daymond John for $250k and a 30% stake contingent that he can work them into a deal with BadASS.
UPDATE: Obviously BADDASS Nutrition is now involved with PRO-NRG and Daymond John has once again put a successful deal together.
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