Shark Tank: NuMilk Accepts $2,000,000 From Mark Cuban

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With consumer trends favoring plant-based diets and zero waste buying, business partners Joe Savino and Ari Tolwin are reimaging the way we purchase milk. Their product, NuMilk, allows consumers to make their own dairy-free milk at the touch of a button. Whether it is in the grocery store or at home, NuMilk offers a machine that can create fresh milk from alternative, dairy-free sources such as almonds and oats. After making fresh NuMilk in the store or at home, it has a shelf life of 7-10 days which is similar to traditional milk products. When consumers bring back their glass milk bottles to refill, each refill only costs $3.99, a very competitive price to the traditional milk products.

Joe and Ari came to the Shark Tank in hopes of securing a $1,000,000 investment in exchange for 5% equity in NuMilk. Each grocery machine generates about $50,000 per year per location. They have also designed smaller versions for coffee shops and in-home use. Because Covid delayed some of their launches into retail spaces, NuMilk will only pull in about $400,000 by the end of the year, however, they are hopeful that with a Shark on board they can pivot their business model to better serve consumers in their homes.

Despite the financial losses the company has suffered while trying to get to market, Sharks Kevin O’Leary and Mark Cuban believe that NuMilk is onto a concept that could revolutionize the non-dairy milk market. Kevin offers to loan NuMilk $1,000,000 at 9.5% interest over 3 years in exchange for 5% equity. He vows to bring NuMilk a lot of digital marketing expertise for the consumer market. Mark Cuban also thinks that their ticket to growth and success is in selling the individual units for at-home use. Mark offers a total investment of $2,000,0000. $1,000,000 would be in exchange for 7% equity while the other $1,000,0000 would be a loan at 3% interest in exchange for another 3% in advisory shares or equity. In total Mark would invest $2,000,000 for 10% equity in NuMilk. Joe and Ari liked how Mark structured his deal and accepted Mark Cuban’s offer.

If you were the founders of NuMilk, which Shark would you have chosen? If you were a Shark, would you have invested in NuMilk? Start the conversation in the comments below!

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