|SEASON 12 EPISODE 18|
|Pitch||plant-based milk making machine|
|Entrepreneur||Joe Savino and Ari Tolwin|
|Asked For||$1,000,000 for 5%|
|Deal||$1 million for 7% equity + $1 million loan for 3% equity|
What is NuMilk?
NuMilk allows you to make pre-packaged plant-based milk from the comfort of your kitchen or in-store at a kiosk. You can then use it in your coffee, protein shakes, and milkshakes. To make their delicious tasting milk, you insert one of several flavored packets containing organic materials like almonds and oats into their stylish machine. Be it the home countertop or in-store kiosk variant, add some water, push a button, and in seconds you’ve created barista-ready plant-based milk.
Who are the Founders of NuMilk?
The NuMilk co-founders are friends Ari Tolwin and Joe Savino, who set up the business in 2018. Both come from a background in the beverage industry. Ari was the CEO of Happy Tree Water, which he co-founded four years earlier. And Joe founded the Harvest Beverage Group around the same time frame. Both remain on the board of NuMilk today.
The pair came up with the idea after they both noticed an increase in veganism and the desire of consumers to have plant-based food alternatives for typical dairy foods. They also wanted to cut out the preservatives and additives found in the current packaged brands on the market.
They conducted some research into recipes and organic materials, yielding early positive signs from consumers who tested it.
They then managed to raise capital and started setting up their kiosks in numerous store locations. And while the company was showing significant growth over the 2018 and 2019 fiscal years (averaging $50,000 per kiosk), they found they were actually losing money due to the constant research and development they were conducting.
So this prompted them to start looking for investors, particularly those though who could offer guidance and experience in the food industry to help pivot them in the right direction.
What Happened to NuMilk After Shark Tank Update
Did NuMilk Get a Deal on Shark Tank?
On Shark Tank Season 12 Episode 18, Joe Savino and Ari Tolwin entered the Shark Tank seeking $1,000,000 for 5% of their almond milk making machine, NuMilk.
The entrepreneurs accepted an offer of $1 million for 7% equity + $1 million loan for 3% equity from Mark Cuban.
Is NuMilk Still in Business?
The business remains open and is doing well, with 28 kiosks in stores in five states now. In 2019 they partnered with WholeFoods and in 2020 rolled out a professional countertop machine specifically for baristas. They also sell their product range online.
How Does NuMilk Make Money?
The company’s business model is to make plant-based milk easily accessible and economically viable, one par pricing wise with dairy alternatives. The consumer has two options, purchase a re-usable milk bottle for $2 and then each time in the store spend 3.99 on a flavored plant-based milk package to refill the bottle. It can stay in the fridge for up to 10 days.
Alternatively, you can purchase a countertop refill machine for home use for $199, along with single-use milk packages. They also sell larger, professional countertop machines at $699 for use in coffee shops. And finally, they sell and ship their products online through their website.