Meet Nui, the Newest Ketogenic Diet Craze
Committing to a “keto diet” requires a special kind of willpower that not everyone has. With that being said, you should know that healthy eating doesn’t have to be so hard. There’s a product out there that allows you to have your cookies and eat them too!
So, stop fighting your cravings and treat yourself to Nui, the low carb, low sugar cookie you can eat with confidence.
On Episode 6 of Season 10, Kristoffer Quiaoit and Victor Marcias pitched their product with tons of positive energy and social proof that displayed its value.
Each cookie has 2g of carbs, 6g of protein, and makes use of nutritious ingredients like almonds, coconut oil and grass fed butter. And thanks to a proprietary blend of natural sweeteners like monk fruit and erythiritol, you’ll only find 1g of sugar per cookie.
The average person could eat an entire box of Nui and still consume less sugar than one traditional cookie! So, if you’re looking for something that you won’t feel bad about eating, then I suggest adding Nui to your pantry.
Kristoffer and Victor requested $300k for 10% equity, and after trying some samples, the Sharks could taste why Nui would be worth the investment. It was an easy solution to a very common problem, the hallmark of a top-tier product.
Thanks to social media and various influencers in the keto cyberspace, the entrepreneurs grossed $1.1 million within the last 12 months. This was done exclusively through their website and they expected to double their sales after launching their product on Amazon this month.
Despite pulling its weight, Nui’s monster sales were actually a double edged sword. When Kevin questioned their scale of production, Kristoffer revealed how difficult it’d been for them to supply the demand for their product.
Their year-to-date sales had reached $630k, but unfortunately, Nui was sold out for three of the six months it took them to earn that amount. Many young businesses have struggled because they couldn’t keep up with their own customers and Nui wasn’t different. They were actually losing sales in the long run.
To avoid that, the entrepreneurs switched production over to a co-packer kitchen, which of course led to questions about their overall numbers. A single box of Nui, or 20 cookies, sold for the rather steep price of $29.95 + $4.95 in shipping.
“Wow, expensive,” Barbara Corcoran said, before pressing them further about their profits. Kristoffer and Victor made approx. $11-$13 per sale but this didn’t impress the Sharks at all.
Such high prices with so little profit marked their cost of production as the obvious problem. Kevin emphasized that they needed to get it down to at most $6 per unit if they ever planned on surviving in retail.
This was why Nui sold out so often. Bad back-end margins made its inventory too expensive to buy at a volume high enough to reduce its cost, and that was killing its front-end sales. The entrepreneurs knew this and were seeking to hire someone in operations with good supply and manufacturing connections as a way to help them meet their 75% gross margin goal.
Guest Shark and former MLB All-Star, Alex Rodriguez understood that their only way of achieving that goal was acquiring capital, which made him concerned about their long-term growth.
Kristoffer and Victor only netted $35k out of their yearly gross, an 11% profit. Nobody looked thrilled about that, especially Mr. Wonderful but Kristoffer rightfully pointed out that Nui’s customer lifetime value safeguarded them.
Essentially, customers repeatedly ordering their cookies made up for it.
Some Sharks, like Mark Cuban, still weren’t convinced though. Another company that he’d invested in, Alyssa's Healthy Cookies, also shared Nui’s healthy theme. If these two companies became competitors, a deal like this could potentially conflict his interests, so he backed out.
Lori backed out as well. she appreciated Nui’s health consciousness, but she simply couldn’t wrap her mind around its $3 million valuation. Those low profits must have triggered that skepticism because, at 11%, it’s obvious that Kristoffer and Victor spent most of their money just staying in business.
With two Sharks out, those remaining began baring their teeth. They all knew they could make a killing off such a fantastic product since additional capital was all it needed.
“The solution is simple,” Kevin said, before offering $300k for 2.5% equity + a $1 royalty per sale, which dropped to 45 cents once he recouped his $300k. He then explained to Kristoffer and Victor that their success involved aligning their interests with his.
They looked happy but they also wanted to hear out any other offers. So, Barbara subsequently offered them $150k in cash and $150k in credit for 15% equity + 50 cent royalties in perpetuity.
“Ouch!” Kevin exclaimed.
Perhaps Ms. Corcoran hoped these two weren’t savvy enough to flag such a voracious offer because she was clearly trying to gut them with it. The split forms of capital and higher equity grab made her offer objectively worse.
Alex then jumped back in, saying that he’d been looking into the cookie space for some time. Since Kristoffer and Victor’s hardworking immigrant backgrounds resonated with him, he wanted them to help him to enter it, so he offered $300k for 25% equity and promised them massive growth.
The other Sharks didn’t appreciate his much simpler deal. It outclassed theirs, despite its higher equity grab. Barbara and Kevin both cautioned the entrepreneurs against giving up so much equity, but Mr. Rodriguez quickly defended his offer.
“For 2.5% you won’t even get him on the phone,” He said, pointing at Mr. O’ Leary who said nothing in response. More equity usually translated to more motivation, a valid point, but Kristoffer and Victor understood the danger in that too.
They vainly attempted to negotiate Alex’s equity grab down to 20% and when that didn’t work they tried to get Barbara to add more capital to her offer, but she also declined.
Some sensible words from Mark Cuban regarding how much more Barbara and Kevin’s deals would cost the entrepreneurs then prompted Alex to modify his offer, lowering the equity down to 22.5% in exchange for a $1 royalty.
That essentially dug the hole deeper for them, so to prevent negotiations from degrading any further, Kristoffer and Victor told Alex that if he went back to his original deal they would accept it.
He briefly paused, made the deal, then stood up to congratulate them.
Kristoffer and Victor walked away with exactly what they needed to manifest the longevity I see in their brand. They chose the right offer too, the additional capital ensured that consumers would never have to wait for Nui to be restocked before buying. With an All-Star Shark like “A-Rod” on the team, they’d keep most of their profits and Nui would be swinging for the fences in no time.
So, the next time you feel like breaking your keto diet, just buy yourself some Nui and don’t feel bad about it.